SARS Diesel Refund Midrand: How to Claim the Full 100%

The SARS diesel refund is one of the few tax benefits that grows with every litre a business burns, and for Midrand-based operators in mining, farming and forestry it has just become worth a lot more. From 1 April 2026, qualifying on-land primary producers can claim 100% of their eligible diesel, up from 80%. The catch is that SARS pays only for litres you can prove, and the rules for registering and claiming have changed twice this year.

What the SARS diesel refund pays back

The refund is not a discount on the pump price. It returns the fuel levy and the Road Accident Fund levy portions of the price on diesel that was bought and used in a qualifying activity. On a busy mine, quarry or farm that adds up to a meaningful monthly amount, which is why the jump from 80% to 100% matters.

Who qualifies, and who doesn’t

You must be registered for VAT, registered for the diesel refund, and the buyer and user of the diesel yourself. The qualifying activities are set out in the Customs and Excise Act. The main ones are:

• on-land farming, forestry and mining, including quarrying
• offshore activities such as commercial fishing, coastal shipping and offshore mining
• electricity generation, and rail and harbour services

Diesel used on public roads does not qualify. A truck hauling ore or produce to market on the N1 or the R21 is outside the scheme, and so are management vehicles, office generators and secondary processing. A pure road-freight fleet based in Midrand will usually not qualify at all, although it still has every reason to monitor fuel.

What changed in 2026

Three changes affect anyone claiming the SARS diesel refund in Midrand and the rest of Gauteng this year:

• 100% from 1 April 2026 for on-land primary producers, first reflected on the returns submitted from May.
• A separate registration from 18 September 2026. Diesel refund registration moved off the VAT system onto a dedicated registration system on eFiling, with a diesel user dashboard. Existing claimants have to register again, and diesel sellers register too.
• A standalone claims process with automated checks. Claims are still calculated through the VAT return for now, but SARS is moving them to a Customs and Excise process that checks the numbers automatically.

Why diesel refund claims fail an audit

SARS expects records of every diesel purchase, how it was stored and how it was used, with the date, the vehicle or machine, the litres and the qualifying activity for each fill. Most rejected claims fall down on the records, not the rules: estimated splits between eligible and road use, logbooks completed weeks later, dipstick guesses, and supplier invoices that don’t match what the logbook says was dispensed. When SARS disallows a refund, it can recover the money with penalties and interest.

Recovering what you missed in the last two years

Refunds can be claimed up to two years after the diesel was bought. Many operators have claimed less than they were entitled to, usually because the records didn’t support a higher eligible share. A review of the last two years of purchases and claims can find those litres while they can still be recovered.

How Digit PRS handles the SARS diesel refund in Midrand

Digit PRS works from Gateway West in Midrand and handles both halves of the problem. On the claims side it reviews past claims, prepares and submits new ones, and supports clients through SARS audits and objections. Director Frans Kamffer has a background in quantity surveying, cost control on mining projects across Africa and transactional data analysis, which is exactly the work a defensible claim depends on.

On the records side, Digit PRS fits DigitFMS truck fuel monitoring and bulk fuel and bowser management, so every delivery, dispense and litre used is recorded against the machine, the site and the time. DigitFMS head office explains the 100% change in more detail in its diesel refund briefing.

To find out what your operation could recover, contact our team or call 072 639 2461. Enquiries are answered within one business day.