Risk associated with purchasing diesel from a non-compliant seller

On 18 March 2022, the Minister of Finance published amendments in Government Gazette No. 45056 under notices R.1892 and R.1893, which amendments are not yet in effect (2022 Amendments).

The amendments introduce a new standalone diesel refund system that will operate separately from the VAT system. As the new system will be separate from the VAT system, a diesel refund user will be required to create an electronic diesel refund user registration profile.

Diesel sellers are also required to be registered and compliant under the new system.

This requirement was reiterated by SARS during its webinar held on 18 September 2026, which addressed the registration requirements under the new system.

A qualifying diesel refund user may be unable to claim a refund where diesel is purchased from a seller that is not registered or compliant under the new standalone diesel refund system.

In addition, the seller should operate a going concern for the sale of petroleum products, be licensed as a wholesaler in terms of the Petroleum Products Act, No. 120 of 1977, and sell the diesel directly to the user as the end customer for the user’s own consumption.

The practical implication is that, even where the user conducts qualifying activities and applies the diesel for eligible purposes, the diesel refund claim may still be disallowed if the seller does not satisfy the applicable registration, licensing and direct-sale requirements. Users should therefore verify the seller’s compliance status before purchasing diesel and obtain the seller’s diesel registration number as evidence that the seller is registered under the new system.

SARS further advised that registration on the new system will go live by Monday,21 September 2026.

Hower claims must still be submitted on the VAT system until the new claim functionality on the new system is implemented next year.