New Diesel Refund Legislation
Starting in April 2026 (after a pilot phase), SARS is "decoupling" diesel refunds from the VAT system. Historically, organisations claimed their refund on the VAT201 return; moving forward, the diesel refund will reside on a standalone platform under the Customs and Excise Act.
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The shift from the old VAT-linked diesel refund system to the new standalone system is the biggest change to fuel tax administration in South Africa since 2001. For companies involved in the Primary Production Sectors, this isn't just a paperwork update, it's a fundamental change in how they calculate, claim, and justify their Diesel Refund Submissions.
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At Abco Africa / Abcotronics we have been tracking this long anticipated update since it was first mentioned in 2022. With our pro-active approach and deep roots in the Diesel Refund Scheme we have the expertise to not only keep your organisation compliant but leverage the new system and maximise your claims.
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Below are the fundamental changes to the legislation and how we as Abco Africa / Abcotronics will support you through the transition.
1. The New Platform​
​You cannot simply carry over your old registration. All current users must re-register via eFiling.
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Standalone System: Registration is now handled strictly under Section 59A of the Customs & Excise Act with no more VAT provisions.
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New Documentation: Applicants will use the new RAVDSL (Registration, Amendments, and Verification Diesel Refunds) form.
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Relationship Management: Registrants must create an electronic "Registration Profile" that explicitly lists their Diesel Refund Relationships, mapping out your business ties with SARS registered Fuel Suppliers and Contractors.
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Fleet Management: An organisation's entire fleet will need to be uploaded onto the eFiling platform with no margin for error. If an asset does not reflect on the profile it cannot be claimed for.
Key Impact: The old and new systems will run in parallel for a 2-year window.
Abco Africa / Abcotronics will ensure you are ready for this switchover by finalising any outstanding claims and assisting you in determining your existing diesel stock levels to ensure a successful new registration process.
Abco Africa / Abcotronics will then commit to 24/7 oversight and maintenance of your organisations eFiling profile keeping meticulous records and mitigating any potential oversights.
2. Adjusted Claim Specifications
In the past, you could only claim for 80% of your eligible litres. The new system allows you to claim for 100% of your eligible litres. However, to balance the books, SARS has reduced the refund rates per litre.
Feature
Claimable Volume
General Fuel Levy
RAF Levy
Current System (Old)
80% of eligible litres
40% Refund
100% Refund
Revised System (New)
40% Refund
100% of eligible litres
80% Refund
Key Impact: While you can now claim for every eligible drop, the amount you get back per litre is lower. Abco Africa / Abcotronics will do a thorough “net position" calculation for you to see how this may affect your organisation's cash flow. (Our Fuel Management Hardware “FuelTrack MKIII” never misses a transaction). Click the button below to find out more about our FuelTrack MKIII
3. Contractors
In a major win for the industry, Contractors now qualify in their own right. Previously, contractors were excluded from the definition of a "user," often leaving the primary mine owner to jump through hoops to claim.
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Wet Contractors: If a contractor provides their own equipment and buys their own diesel, they are now "users" and can claim the refund directly. Contact Abco ASAP and we will walk you through the process from registration to your first successful Diesel Refund Claim.
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Dry Contractors: If you supply the diesel for the contractor’s machines, you remain the "user."
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Profile Mapping: Every contractor must be correctly identified on your Registration Profile to ensure the "chain of custody" for the diesel is clear to SARS.
Key Impact: Abco Africa / Abcotronics will ensure that all your contracts pertaining to the Diesel Refund Scheme, with any external service provider, are indisputable. We will engage with your procurement division to provide consulting advice on how to structure such contracts.
4. Logbooks, Reporting and Payouts
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SARS is moving toward monthly reporting and more flexible record-keeping.
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Monthly Cycle: Claims are submitted via the DSL 201 form within 30 days of month-end.
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Storage vs. Usage: You must maintain two distinct monthly logs: a Storage Logbook (fuel in/out of tanks) and a Usage Logbook (machine hours and tasks).
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Prescribed Logbooks: SARS will provide prescribed logbook templates and these templates will be published before the claims phase.
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Smart Compliance: If GPS or satellite tracking or similar technology is used, you may be able to apply to the Commissioner for a "Simplified Usage Logbook" approval, which can significantly automate your compliance.
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Underground Mining Relief: Usage logbooks are not required for equipment operating underground. Provided certain requirements are met, SARS may accept dispensing entries from your storage logbook as sufficient proof of eligible usage.
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Payouts: Payouts could previously be offset against VAT payable, whereas now they may only be equalised against outstanding tax debts according to (Section 76C)
Key Impact: Historically, Abco Africa / Abcotronics has unmatched methodology in preparing and submitting SARS approved “logbooks”. It is one of our key differentiators in the industry.
Despite the efforts by SARS to “simplify “ this process, our assessment is that compliance will remain difficult.
Abco Africa / Abcotronics will ensure fully defensible data sets are maintained and submitted on your behalf. (Our Fleet Management Hardware “A Track MKI” has got you covered, designed specifically for compliance with the new legislation). Click the button below to find out more about our A-Track MKI
5. Qualifying Activities
SARS has tightened the definitions of what counts as "Primary Production." Claiming for the wrong activity is the fastest way to trigger a penalty audit.
Now Qualifying
Transporting laborers on-site
Moving overburden/deposits on-site
Handling discard/tailings on-site
Now Non-Qualifying
Transporting minerals to a railway siding
Any transport between non-adjacent sites
Maintenance, service, or repair of vehicles
Key Impact: At Abco Africa / Abcotronics our dedicated compliance team carries over 150 years of combined experience in the SARS Customs and Excise space and had personal involvement in the drafting of both the outgoing and incoming legislation.
6. Action Checklist for All Primary Production Operations
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Register from April 2026: Abco Africa / Abcotronics will guide you through the process and ensure your RAVDSL form is completed and submitted successfully on the new eFiling portal.
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Audit Your Supplier: Abco Africa / Abcotronics will engage with your fuel supplier and assist them through the process to ensure they are registered with SARS so that you can guarantee your claim.
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Prepare for the "Big Stock Take": Abco Africa / Abcotronics will assist you in the process of performing a full manual stock take of all diesel on hand the day before the new rules go live. We will structure and retain these records to submit timeously before your first electronic claim is submitted.
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Vet Your Contractors: Abco Africa / Abcotronics will ensure that all your contracts pertaining to the Diesel Refund Scheme, with any external service provider, are indisputable and that they are successfully uploaded onto your Registration Profile.
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Update Your Internal Logbooks: Abco Africa / Abcotronics will engage in a training session with your team dedicated to capturing and maintaining defensible data for your Diesel Refund Claims. With ongoing support, our dedicated Project Management Team aims at adjusting poor learned “behaviours” on site and bringing reform through good disciplines.
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Finalise Old Claims: Within the two year overlap period Abco Africa / Abcotronics will ensure that any unresolved outstanding Diesel Refund Audits are finalised. (We have an unmatched record in unlocking massive value for our clients in these cases) This will allow your organisation to seamlessly move into the new system.
7. Point Form Summary
Abco Africa / Abcotronics has been proactively tracking and preparing for this legislative update since 2022.
We offer unmatched expertise to secure your transition and optimize your ongoing operations. From managing the complex new RAVDSL re-registration and finalising outstanding legacy claims to providing 24/7 oversight of your new electronic profile and ensuring defensible monthly data submissions, we have you covered.
Through our proven methodologies and specialized hardware solutions (FuelTrack MkIII and ATrack MkI), we ensure your organisation not only remains fully compliant but also maximizes cash flow under the new claim structures.
Feature
Administration
Registration
The "80%" Rule
Refund Rates
Contractors
Logbooks
Submission
Current System (Old)
linked to your VAT system
VAT 101D (linked to VAT status)
Claim only 80% of eligible litres
40% Fuel Levy + 100% RAF
Excluded from the "User" definition
Strict "Daily" entry requirements
Part of your VAT 201 return
Revised System (New)
RAVDSL (standalone electronic profile)
Standalone system under Customs & Excise
Claim 100% of eligible litres
32% Fuel Levy + 80% RAF
Wet Contractors now qualify in their own right
Monthly Storage & Usage logs
Dedicated DSL 201 electronic form
8. Final Thoughts
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Abco Africa / Abcotronics has been proactively tracking and preparing for this legislative update since 2022.
-
We offer unmatched expertise to secure your transition and optimize your ongoing operations. From managing the complex new RAVDSL re-registration and finalising outstanding legacy claims to providing 24/7 oversight of your new electronic profile and ensuring defensible monthly data submissions, we have you covered.
-
Through our proven methodologies and specialized hardware solutions (FuelTrack MkIII and ATrack MkI), we ensure your organisation not only remains fully compliant but also maximizes cash flow under the new claim structures.