| 75.25 | The rules numbered 75.25 followed by further digits relate to the refunds as contemplated in section 75(1A)(a). |
RULES IN RESPECT OF THE DIESEL REFUND SCHEME
Refunds granted in respect of distillate fuel in accordance with the provisions of section 75 and in terms of item 670.04 of Schedule No. 6 when such distillate fuel is purchased and used by the diesel refund user as prescribed in Note 6 in Part 3 of Schedule No. 6.
| 75.25.01 | Application of provisions and definitions |
| (a) | Rules 75.25 apply to refunds granted in respect of distillate fuel in accordance with the provisions of section 75 and item 670.04 of Schedule No. 6. |
| (b) | Section 59A and the rules thereto, including the definitions in such rules, apply with any necessary changes as the context may require for the purposes of the registration of sellers of eligible purchases of distillate fuel to diesel refund users and registration of diesel refund users under the diesel refund scheme. |
| (c) | Section 119A and the rules thereto, including the definitions in such rules, apply with any necessary changes as the context may require for the purposes of the electronic processing of diesel refund applications and electronic payments under the diesel refund scheme through relevant e-filing procedures. |
| (d) | For the purposes of rules 75.25 and any form to which these rules relate— |
| (i) | any word or expression to which a meaning has been assigned in Note 6 in Part 3 of Schedule No. 6 has the meaning so assigned, unless the context otherwise indicates; and |
| (ii) | “diesel refund” means the refunds as contemplated in section 75(1A)(a) and includes any such refunds that are debt equalised against outstanding tax liabilities of the diesel refund user in terms of section 76C; |
“diesel refund scheme” means the mechanism whereby diesel refunds are granted in respect of distillate fuel that is purchased and used by the diesel refund user as prescribed in Note 6 in Part 3 of Schedule No. 6; and
“diesel refund user” means the user as defined in section 75(1C)(b)(i) and as defined in Note 6 in Part 3 of Schedule No. 6 and who is registered as contemplated in section 75(1A)(b)(ii).
| 75.25.02 | Registration and recordkeeping of a seller |
| (a) | Every person who intends to sell eligible purchases of distillate fuel to diesel refund users on or after the date on which rules 75.25 come into operation must apply for registration in accordance with rule 59A.01A(b)(i)(aa). |
| (b) | Every registered seller of eligible purchases must— |
| (i) | whenever any of the particulars furnished in its application for registration changes in any material way, advise the Commissioner within seven days from the occurrence of such event by submitting a renewed application for registration reflecting the changed particulars; and |
| (ii) | keep detailed records reflecting the particulars for each sale of eligible purchases to any diesel refund user, including the duties paid thereon and transport and delivery thereof, available for inspection on request by the Commissioner for a period of five years calculated from the end of the calendar year in which such records were created. |
| 75.25.03 | Registration of the diesel refund user |
| (a) | Only a person who is registered as a diesel refund user under the diesel refund scheme as contemplated in section 75(1A)(b)(ii) may apply for diesel refunds in terms of item 670.04 of Schedule No. 6. |
| (b) | Every person who intends to apply for diesel refunds under the diesel refund scheme on or after the date on which rules 75.25 come into operation must apply for registration in accordance with rule 59A.01A(b)(i)(aa). |
| (c) | Every registered diesel refund user must, whenever any of the particulars furnished in its application for registration changes in any material way, advise the Commissioner within seven days from the occurrence of such event by submitting a renewed application for registration reflecting the changed particulars. |
| 75.25.04 | Registration profile of the diesel refund user |
| (a) | Every person who applies for registration in accordance with rule 75.25.03 must create a single diesel refund user registration profile electronically through the communicative system indicated on the SARS website for that purpose. |
| (b) | The registration profile of the diesel refund user must list the information prescribed in Note 6 in Part 3 of Schedule No. 6 in respect of all eligible purchases and qualifying activities of that diesel refund user, including the— |
| (i) | category of qualifying activities performed; |
| (ii) | commercial fishing permit and the holder or cessionary thereof, if applicable; |
| (iii) | mining authorisation and the holder or cessionary thereof, if applicable; |
| (iv) | location where the qualifying activities are performed, which is the— |
| (aa) | physical address or geographical location as applicable in agriculture, mining on land and electricity generation; or |
| (bb) | vessel, installation or locomotive as applicable in fishing, offshore mining, offshore shipping, harbour shipping and rail freight transport; |
| (v) | storage facilities for eligible purchases of the diesel refund user, together with the identifying features and fuel storage capacity thereof, as well as the physical address of any such storage facility which is situated at a fixed geographical location; |
| (vi) | assets that are powered by eligible purchases of the diesel refund user, together with the identifying features, make, model and fuel tank capacity thereof, as well as the physical address of any such asset which is situated at a fixed geographical location; and |
| (vii) | diesel refund relationships of the diesel refund user as disclosed or re-disclosed and confirmed in accordance with rule 75.25.05. |
| (c) | Every diesel refund user must update its registration profile by the means indicated in paragraph (a) within 30 days of any change in particulars provided therein. |
| 75.25.05 | Diesel refund relationships of the diesel refund user |
| (a) | In accordance with rule 59A.06A, rule 59A.06B and rule 59A.06C, every diesel refund user must disclose, confirm or reject, and re-disclose as applicable its customs and excise relationships to the Commissioner. |
| (b) | For the purposes of paragraph (a), “customs and excise relationships” includes any diesel refund relationships which the diesel refund user entered into for the purposes of any qualifying activity, such as any— |
| (i) | agreement of the diesel refund user as a member of a partnership, joint venture or an unincorporated body of persons; |
| (ii) | seller of eligible purchases to the diesel refund user; |
| (iii) | transporter of eligible purchases for the diesel refund user; |
| (iv) | agreement of the diesel refund user for the purposes of hiring, leasing or chartering any asset to perform any qualifying activity; and |
| (v) | agreement of the diesel refund user for the purposes of contracting or sub-contracting any person to perform any qualifying activity. |
| (c) | Every diesel refund user must— |
| (i) | include its disclosed or re-disclosed and confirmed diesel refund relationships in its registration profile in terms of rule 75.25.04(b)(vii); and |
| (ii) | update the disclosure of its diesel refund relationships in terms of paragraph (a) within 30 days of any change in particulars provided therein. |
| 75.25.06 | Submission of diesel refund applications |
| (a) | For the purposes of applying for a diesel refund, every diesel refund user must submit electronically within the period prescribed in paragraph (b)— |
| (i) | a diesel refund return on form DSL 201; and |
| (ii) | upon request from the Commissioner, any substantiating source documentation as contemplated in paragraphs (c) and (d) of section 75(4A)and prescribed in Note 6 in Part 3 of Schedule No. 6. |
| (b) | The return and documentation specified in paragraph (a) must be submitted within 30 days after the last day of the accounting period, but not later than the penultimate working day of the month following that accounting period. |
| (c) | For the purposes of paragraph (b), an accounting period shall be a period of one calendar month or any part thereof. |
| (d) | Should the diesel refund user not have a diesel refund application for any particular accounting period, that diesel refund user may choose to not submit a diesel refund return for such accounting period. |
| 75.25.07 | Determination of diesel refund applications |
| (a) | Every diesel refund user must determine its monthly diesel refund application according to the prescriptions of Note 6 in Part 3 of Schedule No. 6 by— |
| (i) | limiting the diesel refund application to the eligible purchases of that diesel refund user which were purchased and used in qualifying activities in the Republic by such diesel refund user; |
| (ii) | excluding any non-eligible purchases of that diesel refund user from the diesel refund application; and |
| (iii) | verifying the diesel refund application through the required substantiating source documentation of that diesel refund user. |
| (b) | Every diesel refund application is— |
| (i) | restricted to the eligible purchases and qualifying activities of the diesel refund user which are supported by the information current on the registration profile of that diesel refund user within 30 days of any change in particulars provided therein; and |
| (ii) | subject to presentation by the diesel refund user of the required substantiating source documentation and any other proof prescribed in Note 6 in Part 3 of Schedule No. 6 at such time and in such form as the Commissioner may request. |
| (c) | Any diesel refund application must be submitted within two years from the date of purchase of such distillate fuel, on the basis that— |
| (i) | any distillate fuel purchases shall be deemed to have been used in the order of the dates of such purchases; |
| (ii) | the amount of the diesel refund application shall be calculated at the refund rate applicable on the date of such purchase; and |
| (iii) | the date of such purchase shall be the date of issue of the purchase invoice as contemplated in section 75(4A)(c) and prescribed in Note 6 in Part 3 of Schedule No. 6. |
| 75.25.08 | Processing of diesel refund applications and payments |
| (a) | Any diesel refund application and payment must be processed electronically through relevant e-filing procedures in terms of section 119A and the rules thereto with any necessary changes as the context may require. |
| (b) | Any diesel refund user that chooses to correct its historical diesel refund applications must do so electronically, on the basis that— |
| (i) | corrections that result in a decrease in a historical diesel refund application must be effected on the diesel refund e-filing account of such diesel refund user for the historical period concerned; and |
| (ii) | corrections that result in an increase in a historical diesel refund application must be effected through the monthly diesel refund application process on a future diesel refund return of such diesel refund user for the historical period concerned. |
| (a) | Every approved registration that is applied for before rules 75.25 come into operation will take effect on the date these rules come into operation. |
| (b) | Every diesel refund user must take stock of all distillate fuel in that diesel refund user’s possession when operations cease on the day before rules 75.25 come into operation and retain such stock records for a period of five years. |
| (c) | Any diesel refund application in respect of distillate fuel purchased before rules 75.25 come into operation must be made by means of the system in use for the processing of diesel refunds before these rules come into operation and which will remain active for two years after these rules come into operation. |
| (d) | For purposes of rule 75.25.06(c), the accounting period will commence on the date rules 75.25 come into operation. |
[Rule 75.25 inserted by section 3 of Notice No. R. 1892, GG46056, dated 18 March 2022]
| 75.26 | The rules numbered 75.26 followed by further digits relate to the submission of applications for drawbacks and refunds contemplated in Schedule No. 5, and for refunds contemplated in Schedule No. 6 to the Act through eFiling or through the electronic data interchange system (EDI) |
For the purposes of these rules, any word or expression to which a meaning has been assigned in the Act shall bear the meaning so assigned and unless otherwise specified or the context otherwise indicates—
“Customs and Excise Office” means a Customs and Excise Office as indicated on the SARS website, where applications contemplated in these rules may be submitted;
“electronic data interchange” or “EDI” means the electronic transfer from computer to computer of information using an agreed standard to structure the information;
“eFiling” means a SARS software application available on the SARS website which enables SARS and registered electronic users to generate and deliver electronic filing transactions, and any grammatical derivative has a corresponding meaning;
“form DA 63”, “form DA 64” or “form DA 66” respectively, means the electronic equivalent of the relevant prescribed form to be used for purposes of eFiling or EDI, unless expressly stated otherwise; and
“these rules” means the rules contemplated in rule 75.26.
| 75.26.02 | Persons submitting applications in terms of these rules to be registered electronic users |
A person submitting an application in accordance with rule 75.26.03(a) must be registered, depending on the mode of electronic submission selected, as an electronic user for—
| (a) | eFiling as contemplated in rule 59A.01A(b)(iB); or |
| (b) | electronic data interchange (EDI) as contemplated in rule 101A.02(3). |
| 75.26.03 | Applications for drawbacks and refunds in Schedule No. 5 and refunds in Schedule No. 6 that must be submitted electronically |
| (a) | An application for a drawback or refund relating to the items in Schedules No. 5 and 6 referred to in this rule must, subject to rule 75.26.04, be made electronically by submitting the relevant electronic form and supporting documents through either eFiling or EDI. |
| (b) | Form DA 66 together with form DA 64 must be submitted in accordance with paragraph (a) in respect of applications for drawbacks or refunds, as the case may be, relating to the items in Schedule No. 5, subject to paragraph (c). |
(c)
| (i) | Form DA 66, together with form DA 63 reflecting the information as certified by the Controller in the paper format of form DA 63, must be submitted in accordance with paragraph (a) in respect of applications for drawbacks or refunds, as the case may be, relating to the following items in Schedule No. 5: |
| (ii) | Form DA 63, as certified by the Controller in paper format, must at the time of application be submitted as a supporting document to the application referred to in subparagraph (i). |
| (d) | Form DA 66 must be submitted in accordance with paragraph (a) in respect of applications for refunds relating to the following items in Schedule No. 6: |
| (iv) | 691.05 and 691.06; and |
| (v) | 681.04, 681.05 and 681.06. |
| 75.26.04 | Submission of applications dealt with in these rules in the event of systems failure |
When, in the event of a systems failure, an electronic user referred to in rule 76.26.02 cannot submit an application for a drawback or refund dealt with in these rules electronically as required in terms of rule 75.26.03, such application may be made at a Customs and Excise Office by manual submission of the of the relevant prescribed form in paper format, printed from the SARS website, as well as any supporting documents as may be required for the relevant application.
| 75.26.05 | Communication through eFiling for purposes of applying for drawbacks and refunds |
| (a) | The rules for electronic communication published in terms of section 255 of the Tax Administration Act by Government Notice No. 644 dated 25 August 2014, apply for purposes of electronic communication through eFiling as contemplated in these rules, subject to paragraph (b). |
| (b) | The rules for electronic communication referred to in paragraph (a) apply with any necessary changes as the context may require, and in such application any reference in those rules to – |
| (i) | a tax Act must be read as including a reference to the Customs and Excise Act or the rules thereunder; |
| (ii) | an electronic filing system must be read as including a reference to eFiling for purposes of submission of applications for drawbacks and refunds and related messages in terms of these rules; |
| (iii) | an electronic filing transaction must be read as including a reference to submission of an application for a drawback or refund in terms of these rules; |
| (iv) | an electronic communicator or registered electronic user must be read as including a reference to an importer, exporter or any other person entitled to claim a drawback or refund, registered in terms of section 59A as an electronic user for eFiling; |
| (v) | a registered tax practitioner must be read as including a reference to a person registered in terms of section 59A as an electronic user for eFiling and who is authorised to submit applications for drawbacks and refunds dealt with in these rules electronically as a clearing agent, registered agent or other representative on behalf of another; and |
| (vi) | a taxpayer must be read as including a reference to a registered importer, exporter or any other person entitled to claim a drawback or refund. |
| (c) | In the event of any inconsistency between a provision of the rules under section 75 and the rules for electronic communication referred to in paragraph (a), the provision of the former prevails. |
| 75.26.06 | Communication through the electronic data interchange system (EDI) for purposes of applying for drawbacks and refunds |
The rules under section 101A apply for purposes of electronic communication through EDI as contemplated in these rules.
| 75.26.07 | Transitional arrangements |
| (a) | An application for a drawback or refund dealt with in these rules submitted manually in paper format prior to the effective date of these rules, must be considered in accordance with the process for manual submissions, subject to paragraph (b). |
| (b) | Where it is determined during consideration of an application contemplated in paragraph (a) that a new application must be submitted, such application must be submitted either through eFiling or EDI, in accordance with rule 75.26.03. |
[Rule 75.26 inserted by section 4 of Notice No. R.3884, GG49313, dated 15 September 2023]
