The South African Revenue Service (“SARS”) has opened registration for the modernised Diesel Refund System on eFiling, marking the next step in the transition to a standalone digital administration of the Diesel Refund Scheme.
The modernised system introduces changes that extend beyond moving the existing administration onto a digital platform. It introduces a new digital approach to registration, participation, relationship-management, submission of claims, and greater visibility over participants and diesel suppliers.
Key developments
The modernised system moves diesel refund registration away from the current VAT-linked model to a dedicated Diesel Refund System on eFiling. Importantly, there will be no migration of existing users. Businesses currently registered for diesel refunds will therefore need to reregister as users on the new system.
The modernised system also broadens access for diesel refund users. Any person that purchases and uses diesel to conduct qualifying activities can now register as a diesel refund user, including wet contractors.
Businesses should also take note of the importance of registering supplier relationships. Users will be required to establish and manage their relationships with registered diesel sellers electronically. Diesel sellers must therefore be registered on the system before a user can establish the relevant supplier relationship. Under the new system, if diesel is purchased from an unregistered seller, the associated diesel refund will not be processed.
The registration functionality is being introduced ahead of the next phase of the modernisation. Standalone submission of diesel refund claims on the new system has not yet been implemented and is expected as part of a later phase in 2027. Until then, businesses qualifying for diesel refund claims under the current VAT-linked model must continue submitting claims through the existing VAT-linked system, with the two systems operating in parallel during the transition.
Actions for participants
Following a webinar on 18 September 2026, SARS confirmed that registration on the new modernised system is now available on eFiling. From 21 September 2026, Businesses should register on the new system without waiting for the standalone claims functionality to become available.
In particular, businesses should:
- Ensure that their SARS eFiling profile is merged and validated before registering for Diesel Refunds.
- Gather the required supporting documentation.
- Register as a seller or user. Businesses cannot register as both.
- Confirm that the diesel sellers from whom diesel is purchased are registered.
- Declare the relationship between users and sellers, and between users and other users.
SARS indicated that further guidance on merging or validating profiles, and step-by-step registration guides will be published in due course.
Businesses should therefore treat registration as an immediate priority, while continuing to use the existing system for diesel refund claims until the standalone claims functionality is implemented. During this period of transition, wet-contractors will be permitted to register as diesel refund users on the modernised system on eFiling, but will not be able to claim diesel refunds through the existing VAT-linked system.
Should you have any questions or require assistance with the registration, please do not hesitate to contact ENS’ Tax Practice.
*Reviewed by Andre Erasmus, Executive in ENS’ Tax practice
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]