New regulations for diesel rebates

From 1 April, SARS will only accept logbooks as valid evidence of diesel usage. Previously diesel rebates could be applied for by completing a VAT101D application form.

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Following the problems encountered with the diesel refund system, SARS proposed an amendment to Schedule 6 of the Customs and Excise Act.

The problems were mostly due to a lack of adequate record-keeping by farmers.

Under the amendment, the amount of diesel qualifying for a rebate would be reduced by 20% to allow for potential non-qualifying purchases that are not supported by the requisite logs.

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This is valid for producers who have not adequately kept track of fuel consumption in the form of logs for the period between 1 November 2009 and 31 March 2013.

The content and format of the log will be discussed in a SARS workshop at a later stage.