SARS diesel refund audit checklist for farmers

If SARS verifies or audits your diesel refund claim, you must be able to show, litre by litre, how the diesel you claimed for was bought, stored and used in a qualifying farming activity. In practice that means the original invoices and delivery notes, a monthly storage logbook for each tank, a monthly usage logbook, and a record of any diesel that was sold, given away or lost. Keep it all for five years.

This is general information, not tax advice. Confirm the details with SARS or your tax practitioner.

Can SARS really check my diesel refund claim?

Yes. SARS states that a diesel refund is "not an entitlement to a refund" and that claims "can be subjected to verification" under the Customs and Excise Act. If a refund was paid that should not have been, SARS says it must be repaid, together with any penalties and interest that apply.

So the question is not whether your records exist, but whether they would convince someone who has never been on your farm.

What records does SARS expect a farmer to keep?

SARS's Note 6 to Part 3 of Schedule 6 (the rule behind the diesel refund) sets out the documents that support a claim. The notice of 18 March 2022 lists them as:

• the original invoice for each diesel purchase, showing the date, the seller's and your name and address, the litres and the total price
• the original delivery note, where the fuel was delivered, with the date, litres, price and the delivery vehicle's details
• a monthly storage logbook for each storage facility (fixed tank, bowser or fuel truck)
• a monthly usage logbook showing the diesel dispensed, the assets it powered and the purpose of each activity
• the source documents that you used to complete those logbooks
• records of any diesel received under a rebate of duty
• records of any diesel disposed of and any diesel lost

The rules also expect you to keep records separate if you do more than one kind of activity, or any activity that does not qualify. A farm that also runs a guest lodge or a transport business needs to be able to split the litres.

Two cautions. First, the diesel refund system is being reformed, and SARS's November 2025 presentation describes monthly storage and usage logbooks, simplified usage logbooks in some cases and a new registration process. The notice quoted above was published with its effective date still to be set. Second, SARS publishes logbook templates and a policy on its website that set the minimum content, so check the current ones on the SARS diesel refund page rather than relying on this summary.

How long must I keep diesel refund records?

The SARS diesel refund page says the documents must be kept for five years from the date of use or disposal of the fuel, or from the refund return, whichever is last. The 2022 notice words it as five years from the end of the calendar year in which the record was created. Where two versions differ, keep the records for the longer period and ask SARS which applies to you.

Which record gaps cause the most trouble?

These are the gaps that would be hardest to explain, based on the list of required records above:

1. Invoices that do not match the logbook. Litres on the slip and litres in the tank book should agree. If a supplier invoice is missing, you have a purchase you cannot prove.
2. No monthly storage logbook for a tank. A bulk tank without a monthly record of what came in and went out makes every litre drawn from it hard to defend.
3. Usage entries without an activity. "Tractor, 180 L" does not show a qualifying activity.
4. Fuel taken from the diesel tank for non-qualifying work, such as the family bakkie or a neighbour's tractor, that stayed in the claim.
5. Losses that were never written down. The notice asks for the date the loss was found, where it happened, how the volume was worked out, and a police report or insurance details where there are any. A theft that was only discussed over coffee is a hole in the books. See the warning signs of farm fuel theft.
6. Entries written weeks later from memory. Reconstructed numbers tend to look suspiciously tidy.
7. Records that no longer exist. Wet books, lost slips, a phone that was replaced or a spreadsheet that was overwritten.

A pre-audit checklist

Run through this once a quarter, not when the letter arrives.

• Every purchase has its original invoice and delivery note in a file or a folder.
• Each tank has a storage record for every month, and the closing balance matches a physical dip.
• Each vehicle or machine that took diesel is listed, with its litres, meter reading and activity.
• Non-qualifying use is recorded separately and excluded from the claim.
• Diesel that was sold, given away or lost has its own record.
• The litres in the logbooks reconcile with the litres you claimed.
• You can retrieve any month from the last five years in a few minutes.
• You have checked the current SARS logbook templates for your activity.

Software does not make a claim valid, but it makes the records easier to keep complete. An app that works without signal puts the entry in at the pump, keeps edits on record and can export the logbook in the SARS template format, which AgriTrekker's mobile and web apps do. For a wider look at the options, read paper, spreadsheet or app for farm fuel records.

Frequently asked questions

What happens if SARS rejects my diesel refund claim?

SARS says claims can be verified and that wrongly paid refunds must be repaid with penalties and interest where they apply. If a claim is rejected or queried, respond with the supporting records listed above, and get your tax practitioner involved early.

Do I need a logbook to claim the diesel refund as a farmer?

SARS's rules require a monthly storage logbook for each storage facility and a usage logbook. SARS's reform material describes simplified usage logbooks for some equipment and activities, so check the current template for yours.

Can I claim diesel used in my bakkie to take workers to the farm?

The notice excludes transporting labourers or farm inputs to or from the agricultural property from qualifying activities. Moving labourers around within the property is a different item on the list, so describe the trip accurately and ask your practitioner if it is unclear.

How long do I keep diesel invoices and logbooks?

Five years according to SARS. The period is counted from the date of use or disposal or from the refund return, whichever is last, on the SARS page. Keep the originals and a backup.

What if diesel was stolen or leaked?

It does not qualify for a refund and must be excluded. Record the loss with the details SARS lists: dates, place, circumstances, litres, how you calculated them, and a police report or insurance claim where there is one.

This article is general information based on the sources below, last checked on 11 October 2026. It is not tax advice.