Deloitte Africa, Refuel bridge diesel tracking and tax compliance

Source: Supplied. Refuel chief executive officer Ricky Luntz.

The alliance brings together Refuel’s ability to capture detailed fuel-use data and Deloitte Africa’s experience in tax compliance, creating a ‘tech plus tax’ solution for businesses in mining, agriculture, forestry, fisheries and other fuel-intensive industries.

The partnership aims to simplify rebate claims, improve data accuracy and help companies meet the South African Revenue Service’s requirements.

Historically, diesel rebates – which can amount to R3,82 or more per litre – have been a vital source of working capital for heavy-industry players. Many businesses continue to rely on manual logbooks and fragmented reporting, however. This means claims are rejected because they don’t have the correct data. In the process, companies risk being charged penalties for non-compliance.

Until now, fuel-management technology and Sars tax expertise have operated in silos. The Deloitte Africa and Refuel collaboration brings them together, to see that operational fuel data is captured in the exact format the tax team needs to substantiate claims.

"Additionally,” says Refuel chief executive officer Ricky Luntz, “Sars is modernising the system to improve compliance while creating a faster, more transparent refund process for businesses.

"Sars’ rollout of its standalone, digital diesel refund system shifts the refund process from the value-added tax environment onto a dedicated, automated platform. Intended to streamline validations and improve transparency, the move provides an opportunity for businesses to digitise their systems and move away from manual logbooks. They stand to get their claims paid out faster if they provide data Sars can trust.”

Tracking function alongside fuel

Deloitte Africa’s Desmat software-driven platform allows for compliance information, such as contracting and mining rights, to be managed adequately while Refuel's fuel-management data is integrated into calculated claims.

The alliance with Refuel also addresses the ‘activity gap’ in fuel reporting. Standard systems typically only track fuel at the point of pour, but Refuel’s proprietary hardware and software track fuel levels and run hours per asset for every specific activity session.

This allows businesses to clearly distinguish between fuel used for primary rebate-eligible activities and diesel used in non-eligible tasks. This data is then integrated into Deloitte Africa’s platform to produce substantiated claims that meet the new reporting structures.

Olebogeng Ramatlhodi, Deloitte Africa’s Indirect Tax Leader adds, “This automated solution aligns with Sars’ digital upscaling objectives by standardising claim workflows and elevating record-keeping standards across the diesel rebate lifecycle. Improved data integrity and real-time processing not only reduce exposure to errors and penalties, but also enhance audit readiness — demonstrating how technology is central to modern tax compliance.”

Beyond tax compliance, the system provides a high-level security check across the fuel ecosystem, which helps to mitigate the risks of fuel theft and wastage.

“As the industry moves toward the full rollout of the digital Sars system, the Deloitte Africa and Refuel alliance provides a necessary bridge between onsite technology and tax compliance,” Luntz concludes.