The South African Revenue Service (SARS) has commenced the first phase of changes to the diesel refund system, with registration on the new platform opening on 18 September 2026.
According to Andrew Hancock, Tax Consultant at Colenbrander, the transition represents an important development for businesses participating in the diesel refund scheme. While the new system will ultimately introduce electronic claims and a more structured digital profile for participants, the immediate message for industry is clear: registration is changing, but the claims process is not changing yet.
The new diesel refund programme is being introduced in three phases.
Phase 1, which is now underway, focuses on registration. Existing diesel refund users will be required to register on the new system, even if they are already registered on SARS’s current system. Fuel suppliers and new users can also register, including qualifying contractors operating on a wet basis.
Phase 2, which is still subject to a timeframe being confirmed, will introduce profile building and relationship declarations. Users will be required to maintain information relating to their assets, fuel suppliers and contractor relationships as part of their diesel eFiling profile.
Phase 3 will ultimately introduce the electronic submission of diesel refund claims through the new system. SARS has not yet confirmed the implementation timeframe for this phase.
Until the new electronic claims functionality is activated, businesses must continue using the existing process for submitting their VAT and diesel refund claims.
“Although the claims process remains unchanged for the time being, businesses should not treat the new registration requirements as something that can be deferred indefinitely,” warns Hancock.
“Existing diesel refund claimants should prepare to re-register on the new platform. Fuel suppliers should also register, given the important role supplier information will play in the new system. New users and qualifying wet-basis contractors can register as well,” he adds.
Businesses should ensure that their supporting information is readily available. The registration process requires documents including recent proof of address for the entity and public officer, recent bank statements and site information. SARS may request additional information depending on the circumstances.
According to Hancock, the introduction of the new system provides businesses with an opportunity to review their diesel records and supporting processes before electronic claims become mandatory.
Accurate records of diesel usage, assets, suppliers, contractors and relevant activities will become increasingly important as the system develops. Businesses should therefore consider whether their current record-keeping and logging systems will support the additional information requirements envisaged under the new framework.
“For now, however, the transition is a registration exercise rather than a change to the claims process. Businesses should continue submitting their VAT and diesel refund claims through the existing process while monitoring further SARS announcements regarding the implementation of Phases 2 and 3,” concludes Hancock.
Early preparation should help businesses avoid unnecessary disruption when the remaining elements of the new diesel refund system are introduced
