Diesel refund for farming in South Africa: eligibility, records and common mistakes
Farming and primary agriculture qualify for the SARS diesel refund scheme, but many claims fail because of weak records, road-use confusion, or seasonal dispensing without logbook discipline. This guide covers what farmers need to know.
Do farmers qualify for the diesel refund?
Generally yes — VAT-registered farming and primary agricultural businesses may qualify where diesel is used for eligible on-land primary production activities. Forestry, harvesting, planting, irrigation and on-farm processing at the production site are common qualifying contexts.
Excluded uses typically include general on-road transport unrelated to eligible farm activities. The boundary between farm work and road haulage is a frequent audit focus.
Eligible vs non-eligible use on farms
Often eligible
- Tractors, harvesters and combines used in primary production on owned or leased farm land
- Irrigation pumps and on-farm generators supporting eligible activities
- On-farm grain drying, milling or processing at the production site
- Forestry harvesting and planting equipment on qualifying land
Often problematic
- Delivery trucks on public roads without eligible-use tie
- Equipment used for non-farming commercial contracting
- Personal or domestic use of farm diesel stocks
- Diesel drawn from farm tanks without usage records per asset
Record-keeping for seasonal operations
Farming is seasonal — but SARS expects consistent records year-round. At minimum:
- Storage logbooks for each farm tank (receipts, opening/closing stock)
- Usage logbooks per dispensing event (litres, asset, field or activity)
- Asset register matching SARS registration profile
- Monthly reconciliation even in low-activity months
See 2026 logbook requirements for detail.
Common farming diesel refund mistakes
- Claiming all farm diesel without splitting road vs field use
- Weekly logbook catch-ups instead of dispensing-time records
- Contractor equipment using farm diesel without allocation rules
- Multiple farms or depots without separate storage records
- Not updating the SARS profile when equipment is sold or replaced
100% refund rate from April 2026
From April 2026 qualifying users may claim 100% of eligible fuel levies (up from 80%). Combined with the new standalone SARS platform, farmers should review registration and records before the next claim cycle. See 100% diesel refund rate from April 2026.
When to get diesel refund advice
Consider advice when preparing a first claim, responding to SARS, or migrating to the 2026 platform. Meridian provides diesel refund advisory for fuel-intensive operations. Start with our complete diesel refund guide and diesel refund information hub.