From 1 April 2023, SARS will allow food manufacturers to claim back the Road Accident Fund part of their diesel price if the diesel is used in the food manufacturing process. This could be to run a generator, power a boiler or any other part of your production process. It will not cover the diesel for your trucks, but for anything else, say hello and we’ll tell you if it qualifies.
Bank that cash!
To get your sweaty hands on that taxman moola, you need to register each site where you use diesel. You can claim from 1 April onwards. Unlike the diesel refund for farms or mines, this is not simply claimed through your VAT return. You need to lodge a proper Customs refund claim. More work, but at R3.80 per litre of diesel, quite a lot of money.
SARS takes a dim view on tax payers lodging incorrect, inflated claims. Even if this an honest mistake, this can become very expensive very quickly. You need to keep records for 5 years, so even though the rebate is only available until 31 March 2025, you are exposed to audits and penalties for 5 years after that date.
- Contact XA at email@example.com to book a free consultation on the new diesel refund opportunity.
- If you do step 1, you of course don’t need to worry anymore. For those who insist on pushing through alone, you now need to register.
- Be sure you keep all your records, including usage log books, purchase invoices and storage records.
- Lodge your first claim.
Want to know more? Drop us a note at firstname.lastname@example.org.