Diesel rebates are going digital. Are your records ready?

For many farmers and other qualifying businesses, the SARS diesel rebate is a significant cash-flow benefit. With rebates potentially exceeding R3.80 per litre, even relatively small errors in record-keeping can translate into substantial amounts of money.

The problem is that SARS does not simply want to know how much diesel you purchased. You need to be able to demonstrate where the diesel went, which vehicle or machine used it, and importantly, what activity it was used for.

This is becoming even more important as SARS moves towards a standalone digital diesel refund system, separate from the traditional VAT process. The direction is clear: SARS wants better quality data, more automated verification and a clearer audit trail supporting every claim.

For farmers, this means the days of relying solely on handwritten diesel logbooks and incomplete records are becoming increasingly risky.

Technology is already being introduced that can track diesel consumption down to individual assets, operating hours and specific activities. This allows qualifying agricultural use to be separated from private or other non-qualifying consumption and creates a much stronger record should SARS verify or audit the claim.

Our advice: Don’t wait for SARS to question your diesel rebate before improving your records. Review your diesel controls now and make sure every litre claimed can ultimately be traced back to a qualifying activity.

As SARS becomes more digital, your records need to do the same.