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Understanding SARS’s New Diesel Refund System: Essential Q&A for Users and Sellers

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SARS has officially launched its new Diesel Refund System. This marks a major shift away from the old VAT-linked framework.

The new digital registration and relationship management portal is now live on e-Filing. Qualifying businesses must now re-register on this standalone platform.

Clients have been given an interim period to complete this registration and licensing process. This window allows businesses to onboard their profiles and set up supplier linkages.

Taking action now ensures that Users and Sellers are fully prepared for the next phases of implementation and ready for the claims go-live in 2027.

To help you to navigate these changes smoothly, we have put together a practical Q&A guide. It covers key registration rules, seller compliance, relationship links, and important operational milestones leading up to 2027.

Diesel Refund Users

QUESTION 1: Is the migration to the new Diesel Refund System automatic for existing users?

  • Answer: No. SARS has confirmed there is no automatic data migration from the old VAT-linked model. All existing diesel refund users must actively re-register on the new standalone digital platform via SARS e-Filing.

QUESTION 2: When did registration open, and what platform is used?

  • Answer: Registration officially opened on 18 September 2026. It is processed through a dedicated Diesel Refund Registration System interface on SARS e-Filing, separating it entirely from traditional VAT registrations.

QUESTION 3: Who is eligible to register as a Diesel Refund User under the modernised framework?

  • Answer: Any entity that purchases and uses diesel to conduct qualifying activities (such as primary farming, forestry, commercial mining, or offshore / onshore coastal shipping, as well as qualifying “wet contractors”) can register.

QUESTION 4: Can an entity register as both a Diesel Refund User and a Diesel Seller?

  • Answer: No. SARS regulations require a clear separation of roles; an entity cannot hold both User and Seller statuses under the same profile registration.

QUESTION 5: Must every location where primary activities take place be registered?

  • Answer: Yes, every location where primary activities (i.e. where farming takes place) must be fully registered against the User registration / license. In other words, you can have one license with multiple locations.

Diesel Refund Sellers

QUESTION 1: Must diesel sellers and fuel suppliers also register with SARS?

  • Answer: Yes. Fuel suppliers and diesel sellers are legally required to register on the new system.

QUESTION 2: Why is Seller registration critical for refund Users?

  • Answer: If a diesel User purchases fuel from an unregistered Seller, the associated diesel refund will not be processed or allowed. Users must ensure their suppliers are fully registered so that electronic supply chain validation can take place.

QUESTION 3: Must every location where Diesel is dispensed from be registered?

  • Answer: Yes, every location where Diesel is dispensed from (i.e. Depots or Tank Farms) must be fully registered against the Seller registration / license.

Relationship Linkage and Disclosures

QUESTION 1: What is the purpose of the Diesel Refund Relationship Management function?

  • Answer: Implemented on e-Filing alongside the registration portal, this function allows clients to formally declare, manage, and maintain operational relationships linked to their diesel profiles (i.e. User-to-Seller connections).

QUESTION 2: How do buyers link themselves to their respective fuel suppliers?

  • Answer: Once both the User and the diesel Seller are successfully registered on e-Filing, the user must establish and validate the relationship with that specific registered seller electronically.

Registration of Assets (Tractors, Tanks, etc.) and 2027 Go-Live

QUESTION 1: How does the current 2026 registration phase relate to the 2027 asset registration and claims go-live?

  • Answer: The 2026 rollout focuses strictly on foundational profiling, digital User / Seller onboarding, and relationship mapping. The upcoming phases, including granular asset-level tracking (such as tractors, storage tanks, and primary equipment) and the standalone claims platform are scheduled to roll out toward the 2027 go-live.

QUESTION 2: Do clients need to register individual assets (like machinery or bulk tanks) right now?

  • Answer: No, not yet. Asset-specific configuration and registration requirements are aligned with the subsequent implementation phases leading into 2027. However, clients should start compiling comprehensive asset registers and usage logbooks ‘now’ to prepare.

QUESTION 3: How are diesel refund claims handled in the interim period before the 2027 full claims go-live?

  • Answer: Despite the shift of registrations to the standalone e-Filing platform, the actual submission of diesel refund claims continues to be administered through the standard VAT system via the VAT201 return on e-Filing until the full claims module goes live.

Final Considerations

QUESTION 1: What preliminary steps should Users and Sellers take immediately to prevent compliance bottlenecks?

  • Answer: Clients should:
    1. Contact The Customs Hub for a quotation for a smooth transition to the new e-Filing platform. We understand all the documentation requirements and know how to configure the e-Filing setup.
    2. Verify that all your diesel Suppliers are actively registering or already registered on the new system. Contact The Customs Hub should you require assistance with Supplier linking. 
    3. You can also discover more information about this at our Diesel Licensing page.

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:
  1. Onboarding to e-Filing for Existing clients
  2. Application on e-Filing for New clients
  3. Supporting Documents and Requirements
  4. Registration of Facilities (i.e. Tanks) and Machinery (i.e. Tractors, Trucks, Vessels, etc.)
  5. Overcome Technical e-Filing challenges.

Contact us directly at this link, or submit the form below.

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The New SARS Diesel Refund System: What You Need to Know in 2026

Posted by on in General Customs IssuesLeave a comment

The Diesel Refund System is undergoing its most significant transformation since 2001.

Effective in mid-2026, SARS will be 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 mid-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:

  1. e-Filing Application: Submit the new electronic application.
  2. Supporting Docs: Be prepared to upload a significant amount of supporting documents during the application process.
  3. 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 implementation in mid-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.
  • Pilot Phase: A closed-group pilot is already underway as of January 2026 to iron out bugs before the mass rollout, arround mid-2026.

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:
  1. Onboarding to e-Filing for Existing clients
  2. Application on e-Filing for New clients
  3. Supporting Documents and Requirements
  4. Registration of Facilities (i.e. Tanks) and Machinery (i.e. Tractors, Trucks, Vessels, etc.)
  5. Overcome Technical e-Filing challenges.

Contact us directly at this link, or submit the form below.

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SARS Mandatory TDN (Tariff Determination) for Alcoholic Beverages

Posted by on in General Customs IssuesLeave a comment

A SARS TDN (Tariff Determination) for Alcoholic Beverages is mandatory.

In 2015, the Customs & Excise legislation was amended to cater for the requirement of mandatory TDNs (Tariff Determinations).

Specifically, the legislation required that all importers and local manufacturers of alcoholic beverages must attain a formal Ruling from SARS.

Why this matters now

We have recently noted a resurgence of enforcement activities at SARS in this regard.

In accordance with Section 47(9) of the Customs and Excise Act, all importers and all local manufacturers must comply.

This applies to all alcoholic beverages falling under Chapter 22 of Schedule 1 Part 1 of the Act, including:

  • Beer, wine, and vermouth.
  • Other fermented beverages.
  • Spirituous beverages (Whisky, Rum, Gin, Vodka, Liqueurs, and Cordials, etc.).

It also applies to all new brands not included in an existing TDN Ruling.

For new brands, one is required to perform an Amendment Application.

Risks of Non-Compliance

Failure to produce a requisite TDN during an audit or inspection can lead to:

  • Rejection of Excise License Applications: Causing significant delays.
  • Penalties: Fines of up to 50% of the value of the goods in terms of sections 78(1) and 84(1).
  • Operational Disruptions: Temporary closure of facilities and suspension of removals from Excise manufacturing warehouses.
  • Detention of Goods: Detainment and seizure of import goods.

A SARS TDN (Tariff Determination) for Alcoholic Beverages is Mandatory

Contact Us for a TDN (Tariff Determination) for Alcoholic Beverages

Please Contact us for advice or a quotation for a Customs TDN (Tariff Determination).

The Customs Hub is highly experienced in compiling TDN applications and ensuring they meet SARS’ rigorous standards.

If you do not currently have a formal Ruling in place for your brands, or if you require an amended Ruling, please contact us urgently.

We can provide a comprehensive quotation to manage the application process on your behalf and safeguard your operations.

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