The Diesel Refund System is undergoing its most significant transformation since 2001.
Effective 1 April 2026, SARS is rolling out a modernised, standalone Diesel Refund System.
This shift isn’t just a technical update. It represents a complete overhaul of how refunds are registered, managed, and paid.
The impact will be felt by all primary industries such as farming, mining, and forestry.
Here is your guide to navigating the new landscape.
Who Qualifies? (The 100% Refund Era)
The biggest news for 2026 is the rate adjustment. Following the 2025 Budget announcement, primary sector claimants operating onland (Farming, Forestry, and Mining) will now be entitled to a 100% refund, up from 80%. This applies to eligible diesel purchases used in qualifying activities.
Qualifying sectors include:
- Onland: Farming, Forestry, and Mining.
- Offshore: Commercial fishing, coasting vessels, and offshore mining.
- Other: Rail freight, certain electricity generation plants (exceeding 200MW), and vessels owned by the NSRI.
The New Standalone e-Filing Process
Historically, diesel refunds were “piggybacked” onto the VAT system (VAT201 returns). Starting in April 2026, the system will be decoupled from VAT.
- Dedicated Platform: Refunds will be processed through a dedicated standalone system on e-Filing.
- Real-Time Validation: The new system introduces automated validations to reduce errors and fraud. It promises to be a more streamlined experience for compliant taxpayers.
Onboarding for Existing Users
If you are already registered for diesel refunds, you cannot simply “carry on as usual.”
- Profile Migration: Existing users must Onboard their facilities into the new system.
- Supporting Docs: Be prepared to upload a significant amount of supporting documents during the onboarding process.
- RLA Integration: While SARS initially planned to use the Registration, Licensing, and Accreditation (RLA) system, the final framework uses a specific “Diesel Refund Product” on e-Filing.
Licensing for New Users
New applicants will follow a rigorous digital registration process:
- e-Filing Application: Submit the new electronic application.
- Supporting Docs: Be prepared to upload a significant amount of supporting documents during the application process.
- Verification: Expect a “pre-registration verification” period of 7–21 working days. The total processing time for new licenses is estimated at 2 to 6 weeks depending on your risk rating.
Given our extensive experience and understanding of the RLA Licensing procedures and requirements, we anticiapte a shorter processing time for both Onboarding and New licenses.
A Major Shift: Sellers Must Now Be Licensed
In a move to close loopholes, sellers of diesel must now also register on the SARS platform.
- Supply Chain Oversight: Sellers will be required to have a Diesel Refund Client Number. This will help SARS to verify that the diesel being claimed is for diesel actually purchased from a legitimate, registered source.
- Compliance: If you buy diesel from an unregistered seller after April 2026, your refund claim may be rejected.
Declaring User Relationships
The new system introduces a Diesel Refund Relationship Management module. This is critical for businesses that don’t operate in a vacuum.
- Contractors & Partnerships: You must disclose relationships with third parties, such as contractors performing qualifying activities on your behalf.
- Relationship Disclosure: Both parties must confirm the relationship on e-Filing. This ensures that “double-dipping” (where both a mine and its contractor claim for the same liter of diesel) is eliminated.
Other Important Information
- Logbook Compliance: The new system allows for “simplified logbooks” tailored to specific entities, but the “audit trail” requirement remains strict. Records must be kept for 5 years.
- The “April 2026” Deadline: While the system goes live in April, the first returns under the new rate will likely reflect in May 2026 (when the April return is submitted).
- Pilot Phase: A closed-group pilot is already underway as of January 2026 to iron out bugs before the mass rollout.
The 2026 modernisation is a “carrot and stick” approach: a higher refund rate (100%) in exchange for tighter digital controls and better transparency.
Contact Us
Ensure that your e-Filing profile is updated early to avoid disruptions to your cash flow.
We can help you with the following Diesel Refund Licensing Activities:
- Onboarding to e-Filing for Existing clients
- Application on e-Filing for New clients
- Supporting Documents and Requirements
- Registration of Facilities (i.e. Tanks) and Machinery (i.e. Tractors, Trucks, Vessels, etc.)
- Overcome Technical e-Filing challenges.
Contact us directly at this link, or submit the form below.