Full Information Page – 2026 Update
South Africa's diesel refund system is undergoing its biggest overhaul in years. These changes directly affect farmers, especially those who rely heavily on diesel for primary production. The summary below explains exactly what changes, when they change, and what farmers must do to stay compliant.
From 1 April 2026, farmers can claim the diesel refund on 100% of eligible litres for on‑land farming, forestry, and mining activities. This is an increase from the previously allowed 80%.
Although the new rate becomes effective in April, SARS confirms that the updated amount will only reflect on the May 2026 VAT/eFiling return, because April's return is submitted in May.
Until 31 March 2026, the 80% rule remains applicable, as shown in the existing Schedule 6 text.
SARS is in the process of decoupling diesel refunds from VAT and implementing a new standalone diesel refund system.
This new system includes:
Rollout phase: 2026–2027
Farmers will need to register specifically for Diesel Refunds, even if already registered for VAT.
How registration works:
Supporting documents must be uploaded via eFiling or SOQS. Processing time is 2–6 weeks, depending on risk and completeness.
Diesel usage and storage logbooks are required for all refund claims.
The new rules introduce:
SARS warns that poor or missing logbooks may result in a 20% reduction in eligible litres.
Diesel may only be claimed for own primary production, including:
Activities NOT eligible include:
Farmers may claim for contractor diesel use only if the farmer provides the diesel (dry hire).
If the contractor brings their own diesel (wet basis), no refund is allowed.
Farmers must keep the following for at least 5 years:
Records must clearly show:
The Schedule 6 legal text still displays the 80% rule, because:
This is normal — tariff schedules reflect the current operative law, and will only be updated by SARS when the amendment is officially effective.
Agri Trekker keeps your diesel rebate logbook in order and calculates tax‑deductible litres. We focus on accurate logbook keeping, clear eligible vs non‑eligible usage, and secure record storage for the required period — so you can focus on farming, not paperwork.
Keep accurate diesel usage logbooks effortlessly with our simple, easy‑to‑use mobile app — right from your phone, even in the field.
We securely store your diesel logbooks for the full 5‑year period required by SARS. No more lost paperwork or missing records.
Easily specify and categorise which diesel usage on your farm qualifies for the rebate, so you can calculate tax‑deductible litres.
Export your complete diesel logbooks in the SARS template format in Excel — ready for submission with zero manual formatting.
Information sourced from official SARS publications. Last reviewed March 2026. Always verify with a registered tax practitioner for advice specific to your farming operation.