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The South African Revenue Service (Sars) has introduced the most significant overhaul of the country’s diesel refund system in 25 years. Consequently, primary producers in South Africa are experiencing a significant change in how they claim diesel rebates.
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From 1 April 2026, on-land primary sectors — including farming, forestry, and mining — can claim a 100% rebate on eligible diesel usage, up from the previous 80%.
Automated validation process
Sars is also moving the process to a standalone digital platform, decoupling it from VAT returns.
This means that future claims will be scrutinised under an automated validation process.
“For businesses in mining, agriculture, and energy, the reporting load is already massive,” says Ricky Luntz, CEO of Refuel, an industrial fuel‑management specialist.
“While the increase to a 100% rebate is a welcome relief, many companies still rely on manual logbooks and spreadsheets.
“Under the new Sars system, these fragmented and often estimated records are a significant audit risk.”
Sars has separated diesel refunds from VAT201 returns and now treats these claims as a dedicated customs and excise process.
Current record-high fuel prices and tight margins mean a rejected claim or a Sars penalty due to poor record-keeping can be financially devastating.
This means record-keeping needs to advance in line with Sars’ shifts to a more automated, efficient process.
Tech solutions
The industry is looking toward IoT (Internet of Things) and AI-driven technology to bridge the gap.
By using industry-compliant hardware and automated software, businesses can track fuel from the moment it is delivered through consumption.
IoT solutions can also classify it according to rebate categories.
“You can’t manage what you don’t measure,” says Luntz.
“Sars requires a level of verifiable accuracy that manual logs don’t reach.
“A digitised fuel ecosystem gives companies a tamper-proof trail. It ensures that when an auditor asks for proof, the business has a defensible, data-backed answer.”
An automated fuel-tracking process isn't just about satisfying Sars; it’s about operational efficiency and cost management.
As fuel prices reach record highs and margins tighten, accurately claiming diesel rebates and minimising waste provide businesses with a significant cash flow and profit boost.
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These tracking systems show managers exactly where their fuel is going, even in the most challenging environments — like deep‑level mines, remote agricultural operations, or high‑throughput energy facilities.
This data serves a dual purpose. It automates tax compliance and simultaneously flags anomalies that could signal theft or waste.
“At the end of the day, it’s about businesses turning a heavy administrative chore into a strategic advantage,” Luntz concludes.
“Clear, reliable fuel data isn't just about getting a refund — it’s about staying competitive and protecting your margins.”