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Does your company qualify for a diesel refund?

by , 13 August 2013
Did you know you can claim your diesel refund to reduce your Vat bill? But there's a catch. You have to meet certain SARS requirements. Read on to find out what these requirements are so you can put some money back to your business.

The diesel refund is a refund given to Vat vendors on the fuel levies (excise duty) and Road Accident Fund (RAF) levies paid on diesel when you buy it, the Practical Vat Loose Leaf Service explains.SARS introduced this refund claim to encourage and enable primary production in South Africa.

And with the diesel price currently at R12.52 a litre, many businesses would benefit from using the refund. 

But SARS is very strict on what type of businesses can claim the refund and what type of industries qualify for it too…

If you're in the following industries make sure you claim your diesel refund

If you're a registered Vat vendor and your business is involved in one of these five industries, you can claim the refund:

  • Farming on land
  • Mining on land
  • Forestry
  • Offshore activities
  • Offshore mining.

The refund system also applies to these four service providers:

  • The National Sea Rescue Institute (NSRI)
  • Rail transport services
  • Harbour services
  • Electricity generation.

If you tick any of these boxes, you qualify to claim the refund. Just remember to get a tax invoice on which the details (amount of excise duty, RAF levy and fuel levy paid) are reflected. No claims will be allowed on products on which the duty hasn't been paid.

The most important thing to remember before you start claiming your refund is that you must have bought the diesel and used it within the borders of South Africa.

Knowing whether or not your business qualifies for a Vat refund will help you reduce your Vat bill by claiming an additional refund on your VAT201 form.

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Does your company qualify for a diesel refund?
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