Commercial Fishing: Know which vessels qualify for a diesel refund and reduce your VAT bill
The diesel refund, or 'bio'-refund, is a refund given to vendors on the fuel levies (excise duty) and RAF levies paid on diesel/bio diesel when it's bought.
SARS brought about this refund claim in order to in order to enable primary production in South Africa.
BUT only CERTAIN industries apply, such as 'offshore activities', which will be discussed in this article.
So if you're involved in such an industry, then this is for you...
As you know, offshore activities include those are carried out by vessels that are designed or adapted for commercial sea fishing.
The refund for diesel may only apply to diesel purchased for use by sea fishing vessels.
You can get R2.17 per litre back for any of the following 4 seafaring vessels:
Vessels designed and used for commercial sea fishing. They must be propelled by inboard engines and its fuel tanks must play an integral part. This includes any mother ship in which any fish is processed,
A vessel that is owned or chartered by either a resident of South Africa or a legal person registered in South Africa, which has its place of effective management in South Africa.
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Vessels that operate between the ports of the South Africa and the Common Customs Area, or the ports of the Common Customs Area.
Vessels that carry out fishing activities with the aim of making a profit.
*Those were 4 fishing vessels that can qualify for a refund on diesel.
So if you own a commercial fishing business, take advantage of this information today.
To learn much more diesel refunds for a multitude of industries, page over to chapter D01: Diesel Refund Scheme
in your Practical VAT Loose Leaf Service
, or click here
if you don't have it already.
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