Who Qualifies for Diesel Rebates?

Who Qualifies for Diesel Rebates?

Entities registered for VAT under the Value-Added Tax Act (No. 89 of 1991) and conducting eligible primary production activities can claim rebates by registering with SARS using form VAT101D.

Eligible activities include:

  • Crop Production: Planting, growing, harvesting, irrigation, and soil preparation
  • Animal Husbandry: Breeding, feeding, and maintenance of livestock
  • Forestry & Horticulture: Timber harvesting, tree nurseries, and ornamental plants
  • Water & Irrigation Management: Pumping, irrigation, and water transport for farming
  • Infrastructure & Earthworks: Maintenance of farm buildings, fences, roads, and equipment

Key point: Diesel used for non-eligible activities, such as transporting goods for reward, cannot be claimed and must be clearly separated in records.

How Diesel Rebates Are Calculated

Rebates typically cover 80% of eligible diesel purchases, combining both the fuel levy and the Road Accident Fund (RAF) levy.

Example Scenarios:

  • Scenario 1: 1,000 litres of eligible diesel → 800 litres claimable at 366 cents per litre (148 cents fuel levy + 218 cents RAF levy)
  • Scenario 2: 1,000 litres purchased, 300 litres used for non-eligible purposes → 700 litres eligible → 560 litres claimable at 366 cents per litre

This ensures rebates are only granted for diesel legitimately used in primary production activities, preventing fraud and audit issues.

Essential Record-Keeping for Diesel Rebates

Accurate, detailed documentation is critical for compliance. SmartMix Technologies supports farmers in maintaining records that meet SARS standards:

  1. Purchase Documentation
  • Retain all diesel purchase invoices for a minimum of 5 years.
  • Separate invoices for eligible and non-eligible purchases.
  1. Fuel Logbooks
  • Record monthly opening and closing diesel levels in each piece of equipment.
  • Document fuel received from storage with dates, quantities, and sources.
  • Track diesel consumption per equipment, including type, ID number, hours/km, and purpose.
  1. Activity Tracking
  • Record specific activities, locations, dates, and diesel used per activity.
  • Separate eligible and non-eligible uses.
  • Include operator details and equipment specifications.
  1. Source Verification & Supporting Data
  • Manufacturer specifications and operational details (distance traveled, hours operated).
  • Notes on incidents or unusual consumption.
  1. Compliance Checks
  • Ensure records are ready for SARS audits.
  • Clearly separate multiple activity streams (e.g., farming vs transport).

SmartMix automates this process, generating digital, auditable logbooks with minimal manual effort.

How SmartMix Supports Diesel Rebate Management

  1. Real-Time Fuel Monitoring
    • Track fuel usage across tractors, generators, bowsers, and vehicles.
    • Receive alerts for unusual consumption, leaks, or theft.
  2. Fuel Theft Prevention
    • Detect unauthorized fuel removal immediately.
    • Reduce losses and protect your diesel inventory.
  3. Automated Record-Keeping & Reporting
    • Generate VAT-compliant reports automatically.
    • Maintain logs that clearly separate eligible vs non-eligible diesel use.
  4. Rebate Optimisation
    • Calculate eligible diesel and projected rebate claims.
    • Ensure you claim every cent allowed under the Diesel Refund Scheme.
  5. Operational Insights & Analytics
    • Analyse diesel consumption patterns across equipment and sites.
    • Identify inefficiencies and opportunities to reduce fuel costs.

Why SmartMix Matters

With SmartMix, farmers and industrial operations can:

  • Protect Diesel & Prevent Theft: Ensure every litre is accounted for.
  • Simplify Compliance: Meet SARS reporting requirements effortlessly.
  • Optimise Costs: Reduce fuel wastage and maximise rebates.
  • Gain Data-Driven Insights: Improve operational efficiency across fleets and sites.

SmartMix is not just a fuel monitoring system — it’s a complete business intelligence platform that integrates fuel management, theft prevention, and rebate optimisation, helping South African businesses save costs, protect assets, and operate confidently.

 

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Share the Post:

Related Posts

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Court Cases on Rebates

Court Cases on Rebates Several recent court cases in South Africa have addressed disputes related to the Diesel Refund Scheme, highlighting the importance of compliance

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