COMPLIANT DIESEL REBATE SOLUTIONS
LAS’s world class fuel accounting software OptiMIM, includes a Diesel Rebate module which automates the process of producing compliant diesel usage logbooks for Eligible and Non-Eligible purchases to support your diesel rebate claim as required by Schedule 6 of the Customs and Excise Act, No 91 of 1964 section 75. The module is continuously updated with legislation changes. LAS staff are experienced in the Diesel Refund Legislation, Auditing and Software Development. These staff maintain and administer the OptiMIM Diesel Rebate Module.
VALUE ADD AREAS PROVIDED BY OptiMIM SOFTWARE
The information obtained and accurately managed for the diesel refund module can be used for the following other applications:
- Export to various financial systems for accurate cost centre reporting
- Export to the client’s maintenance application to accurately determine equipment maintenance scheduling from the hour/km records
- Monitor equipment’s consumption per hour/km
- Manage contractor fuel caps(limits) with accurate fuel usage information
- Fuel saving initiatives by comparing equipment consumption across similar/same equipment categories
SOUTH AFRICA DIESEL REFUND SYSTEM
- Schedule 6 of the Customs and Excise Act, No 91 of 1964
Section 75 provides the legislation applicable to the diesel refund system.
- South African Revenue Services (SARS) administers the diesel refund system through the Value Added Tax (VAT) process.
- SARS is also responsible for auditing the diesel refund claims in South Africa, and can audit your claims up to 5 years after it has been made.
WHAT IS THE CURRENT DIESEL REFUND LEVY?
There are various levies allocated to different sectors. One such sector is Mining, which we have used for the below example
- The current diesel refund levy effective 6 April 2016 amounts to R2.62 per litre of 80% of Eligible Purchases. (Eligible Usage)
- The diesel refund levy is calculated as follows:
- Road Accident Fund Levy @ R1.54 + 40% of General Fuel Levy @ R1.08= R2.62
CLAIMING DIESEL REFUNDS
- Diesel refunds are claimed on the VAT 201 form by inserting the following fields:
- Total purchases
- Eligible purchases
- Non-Eligible purchases
- Diesel refund claims must be supported by logbooks which indicate a full audit trail of diesel fuel for which refunds are claimed, from purchase to use thereof.
- In order to comply with the above mentioned requirements, two (2) types of logbooks are recommended by the legislation, alternatively, they can be combined into one document. These two logbooks are as follows:
- Diesel storage facility (Tanks, bowsers, cassettes etc.) logbook
- Diesel usage logbook.
RISK OF NON-COMPLIANCE
SARS may audit your claims for up to 5 years after they have been submitted. If larger refunds were claimed than what was entitled the following penalties may apply:
INTEREST – The official rate of interest per month or part of a month
FORFEITURE – Once the value of total litres overstated
SUSPENSION – Suspension from the system
REQUIREMENTS FOR A COMPLIANT DIESEL REFUND CLAIMS USAGE LOGBOOK PER EQUIPMENT
The following data fields are required for a compliant logbook:
- Opening and closing date
- Monthly opening litres of diesel in equipment
- Litres received from storage (Date, Storage detail and Quantity)
- Equipment detail (Type, Identification number, Opening km/hours, Closing km/hours and Total km/hours)
- Monthly closing litres of diesel in equipment
- Purpose – Activity performed – Date, Where, Specific eligible activity performed, Eligible litres, Non-eligible activity performed and Non-eligible litres
- Particulars of Operator
If you have any concerns regarding your diesel rebate claims, please Contact Us!