Diesel Refund Scheme

What’s New?

12 December 2025 –Diesel Refund Modernisation

In order to give diesel refunds claimants a streamlined, digitally improved experience that maximises service delivery and compliance, SARS has embarked on modernising the Diesel Refund System. This will provide a specific platform for the registration of sellers of diesel to the users and for eligible users of diesel to register and submit claims for diesel refunds under Schedule 6 of the Customs and Excise Act on a standalone system decoupled from the VAT system.

SARS will host information sessions to keep traders well-informed and to provide detailed guidance for each phase. The first session was held on the 27^th of November 2025 (See presentation). We will communicate future dates for upcoming information sessions. Before each phase begins, guides, FAQs, and other helpful resources will be available on the SARS website.

For more information, see the letter to stakeholders.

What is it?

The Diesel Refund Scheme allows for a refund of all or part of the general fuel levies and RAF (Road Accident Fund) levy to producers in certain sectors. The Customs and Excise Act No. 91 of 1964 (the Act) and Schedule No. 6 (Note 6 in Part 3) govern the Diesel Refund Scheme.

Note that this Diesel Refund Scheme is different from the Diesel Refund for Foodstuff Manufacturer’s Scheme (DRFMS).

Who can apply?

Entities in sectors listed below, that carry on qualifying eligible activities and are registered for VAT purposes (under the Value-Added Tax Act, No. 89 of 1991), may apply for registration for the diesel refund by completing the Registration, Amendments and Verification (RAV01) form if registered on eFiling or at the nearest SARS branch.

Click here to access the guide on how to complete the RAV01. Note that the registration still depends on whether the other remaining requirements for VAT registration and the Diesel Refund Scheme are complied with. 

Entities conducting qualifying primary activities in the following sectors may apply for a diesel refund registration:

On Land

• Farming
• Mining
• Forestry

Offshore

• Commercial Fishing Vessels
• Coasting Vessels
• Off-Shore Mining
• Vessels owned by the NSRI
• Marine Industry Research Vessels
• Coastal Patrol Vessels
• Fibre-Optic Telecommunication Service Vessels

Harbour Vessels

• Operated by Portnet
• Used by in-port bunker barge operators

Rail

• Locomotives used for rail freight

Electricity Generation Plants

• Such plants with a generation capacity exceeding 200 Megawatt per plant.

Before applying for registration, entities must establish whether they qualify for the Diesel Refund Scheme by consulting Note 6, Part 3 of Schedule No. 6 to the Customs and Excise Act No. 91 of 1964.

How do I claim for a diesel refund?

The administration of the Diesel Refund Scheme is done through the VAT (Value Added Tax) system, therefore the claim for a diesel refund is done using the VAT 201 return on efiling.

A diesel refund claim (application) is not an entitlement to a refund and the claim submitted by the user can be subjected to verification to ensure that it is correct in terms of the Customs and Excise Act No. 91 of 1964 (‘the Customs Act”).  Once the claim has been approved, it may be offset against any VAT liability or other liabilities, that are payable in terms of the legislation administered by SARS, and as for in that specific piece of legislation. The setoff is also provisional and subject to the provisions of the Customs Act, read with Note 6, Part 3 of Schedule No. 6 to the Customs Act.

Any diesel refund claim of fuel levy and RAF levy must be submitted within two (2) years from the date of purchase of the diesel.

All relevant documentation relating to diesel purchases as well as the various logbook entries or other records which indicate the actual amounts of diesel purchased and used for eligible and non-eligible use during the tax period, must be retained for a period of five (5) years from the date of use or disposal of the distillate fuel or the refund return, whichever occurs last.

Any diesel refund amount which is found to have been incorrectly refunded will have to be paid back to South African Revenue Service (SARS), together with any penalties and interest that are applicable.