Farmers must reregister for SARS diesel refunds under new digital system
South African farmers who claim diesel refunds will need to register again under SARS’s new standalone Diesel Refund Registration System, even if they are already registered under the existing VAT-linked process.
The new system was implemented on 18 September 2026 as SARS begins separating diesel refunds from VAT and moving the scheme onto a dedicated digital platform. Existing registrations will not migrate automatically. For farmers, this means action is required now to ensure they are ready for the future claims process.
Existing claims continue through VAT for now
The current rollout covers registration and relationship management. Farmers must therefore continue submitting diesel refund claims through their existing VAT process until SARS announces when the standalone claims system will take effect. The two systems will operate in parallel during the transition, making accurate record-keeping particularly important around the eventual changeover date. SARS has already confirmed that the modernisation programme is intended to create a standalone system for registration and claims rather than keeping diesel refunds linked to VAT.
Diesel suppliers must also register
One of the most important changes is that diesel sellers form part of the new digital chain. Suppliers must register under the new system so that diesel-refund users can create and manage their supplier relationships electronically through eFiling. This means farmers should not focus only on their own registration. They will also need to ensure that the wholesalers, co-operatives, distributors, depots or other diesel suppliers they use are registered and can be linked correctly on the system. A supplier that is not properly registered could potentially create delays or difficulties when claims move onto the new platform.
Registration becomes more detailed
The modernised system is designed to create clearer links between the diesel user, seller and qualifying activities. SARS says users can submit registration applications through eFiling or at Customs and Excise branch offices. The SARS Online Query System can also be used to obtain a diesel refund registration number, request documents and check registration status. The relationship-management function allows users to formally declare and maintain the supplier relationships connected to their diesel-refund registration.
Farming remains a qualifying activity
The diesel refund concession continues to apply to prescribed primary-production activities. For agricultural businesses, that makes it important to distinguish diesel used for qualifying farming operations from fuel used in activities such as processing, packing or other non-qualifying operations. This can be particularly relevant for vertically integrated fruit businesses where farming, packing and processing activities operate alongside one another. Farmers also need to maintain detailed records showing where and how qualifying diesel was used.
Refund calculation improved in 2026
The administrative changes follow another important adjustment earlier this year. From 1 April 2026, qualifying on-land primary producers in farming, forestry and mining became entitled to calculate the applicable diesel refund on 100% of eligible diesel use, instead of the previous 80% threshold. This does not mean farmers receive the full diesel purchase price back. The scheme refunds specified fuel-levy components on qualifying use.
Why this matters for South African producers
Diesel refunds represent an important cost recovery mechanism for mechanised farming operations, particularly during fuel-intensive activities such as planting, spraying, irrigation and harvesting. The move to a dedicated digital system should ultimately create clearer records and a more traceable claims process, but the transition creates an immediate administrative risk. Farmers who assume that their existing VAT-linked registration will simply carry across could find themselves unregistered when the new claims platform becomes compulsory.
Producers should therefore ensure that their eFiling profiles are correct, complete the new diesel-refund registration, confirm that their regular diesel suppliers are also registered and maintain their existing VAT-linked claims until SARS announces the formal cut-over date. For farm businesses, completing those steps early could help prevent unnecessary disruption to future refunds.