In today's competitive landscape, optimizing diesel refund claims is essential for businesses in the mining, agriculture and forestry sectors.

Diesel refund claims enable businesses, especially those in the mining industry, to apply via a SARS compliant Logbook for the recovery of eligible On-Road Diesel levies paid for non-road production activities. This refund reduces operational costs and supports compliance with governmental tax incentives designed to benefit specific sectors.

While eligibility is determined by following a structured approach that encompasses registration, accurate record-keeping, compliance with regulations, and timely submission of claims, many businesses face significant challenges in claiming diesel refunds mainly because of the following hurdles:

The Complex Regulatory Framework: Navigating intricate rules governing refund eligibility can be daunting.

Inaccurate Record-Keeping: Maintaining precise diesel usage records is vital for compliance but often proves difficult by not having a clear distinction between eligible and non-eligible transactions.

Manual Claim Processes: Time-consuming and error-prone manual submissions lead to inefficiencies and increased claim rejections.

Lack of Expertise: Some businesses lack a thorough understanding of the criteria necessary for successful claims, especially around the contents of Logbooks.

Audits and Penalties: Non-compliance can trigger audits and financial penalties, further complicating the claims process.

Logically, businesses prefer using automated tools, often in the form of fuel management systems, however this is not the only requirement needed for a successful claim. Clear structure and precise record keeping along with regulatory knowledge has proven to be extremely beneficial in optimising such claims.

‘In order to secure compliance, specialist expert assistance may be required to support clients through every step of the claims process, ensuring accuracy to maximise refunds. Over that last 20 years, Masana, through its partnership with Energy Combustion Solutions (ECS) has successfully used their Energy Plus offer’ says Dhevan Moodley, COO of Masana.

ECS is an energy management and verification specialist partner, that is well known for its proven energy reduction projects and initiatives with the advantage of accessing tax benefits through the S12L scheme. This offer has now been extended to include smart diesel refund services.

‘Masana prides itself on the ability to assist businesses with navigating the complexities of the diesel refund system with confidence. We ensure compliance with all the necessary regulations that enable us to overcome challenges and unlock hidden savings, Moodley concludes.