During 2000 SARS rolled out The Diesel Refund System to provide full or partial relief for the fuel levy (FL) and the Road Accident Fund (RAF) levy to primary producers for the Agricultural, forestry, fishing and mining industry.
Enterprises conducting eligible activities must be registered for VAT purposes in order to claim the refund but must maintain a record of supporting documents including purchase invoices, sales invoices and logbooks.
Diesel refunds should be claimed based on the eligible usage of the diesel which include usage through primary production.
Biggest challenge faced by the Agricultural Industry is the:
- Lack of logbook compliance – to qualify for the refund, taxpayers need to maintain accurate logbooks including information on diesel storage and volumes eligible for the refund. Certain taxpayers, especially in the agriculture, forestry and mining sectors currently claim refunds without maintaining the detailed logbook verification required by law.
Most diesel refunds are disallowed by SARS due to the lack of logbooks and so farmers become less motivated to submit their Diesel Claims monthly and therefore lose out on diesel refunds which put financial strain on Agricultural input costs.
After intense deliberation between Tax Recoveries as well as AGRI Gauteng and other Agricultural Stakeholders a need for specialised services was identified to assist the farmers in Indirect Taxes.
Tax Recoveries assist the Agricultural as well as Corporate industries with the following services
- VAT Review (5 years historically)
- Employment Tax Incentives (Bi-annually)
- Diesel Refunds (2 Years Historically)
- We are not limited to these services
to ensure compliancy with SARS as well as reducing Liability to the industries, getting money back where it is due.
Due to our compelling fee structure NO SAVINGS = NO FEE, which is contingency based, there is no additional financial burden to our clients. There is no need to budget for our services.
Our specialised team consists of various tax experts from different industries with more than 75 years combined experience.
To ensure you get the most back from your indirect taxes.
Phone: 072 179 7500
Email: info@taxrecoveries.co.za
Article by Eugene Roux, Tax Advisor at Tax Recoveries.