Control over fuel imports between Portugal and Spain is tightening. The National Entity for the Energy Sector (ENSE) and the GNR carried out a mega-operation at the Portuguese borders to stop the entry of Spanish fuel sold below market prices. Suspicions of tax fraud and VAT payment evasion are at the heart of the investigation, which has already led to the interception of dozens of tanker trucks.
The operation to control fuel imports took place last Thursday and covered the main points of entry into the country, from Valença, in the north, to Caia, in Alentejo. According to the digital portal specializing in economics and business Executive Digest, around 90 tanks were inspected, equivalent to more than three million liters of fuel. The action involved 15 ENSE inspectors and 93 GNR soldiers.
Suspicions of VAT evasion
According to ENSE, the GNR mega-operation was launched after the detection of irregularities in the imports of fuels and biofuels between Portugal and Spain. The information collected will be cross-referenced with data communicated to the Balcão Único da Energia and the Tax Authority, to verify the quantities actually introduced into national consumption.
The main focus of the suspicions is VAT evasion, a tax that represents 23% of the final price of fuel, according to the same source. Portuguese law allows operators to pay the tax up to three months after import, without requiring a bank guarantee, a loophole that, according to the sector, has been exploited by fraudulent networks.
In practice, some companies charge VAT to distributors, but do not hand it over to the State. Thus, they are able to offer fuels with discounts of between 5 and 12 cents per liter, gaining an advantage in the market and causing distortions in competition.
Shell companies and millions at risk
The general secretary of the Portuguese Association of Petroleum Companies (EPCOL), António Comprido, revealed that many of these operators initially comply with tax obligations, but fail to do so in the following months, closing their activities and reopening under new names. “When they are caught, they disappear”, he stated, highlighting that, in Spain alone, around 200 new operators emerged in a single year.
This scheme causes significant losses for the State and oil companies. Sector sources estimate that the tax revenue at risk amounts to tens of millions of euros. In addition to the loss of contracts and customers, unfair competition puts pressure on prices and further reduces margins in a market that already has limited profitability.
Response from authorities and the energy sector
ENSE and the GNR Fiscal Action Unit reinforced surveillance, reacting to warnings from the main national oil companies. António Comprido confirmed that several EPCOL member companies reported fuel offers “well below normal prices and difficult to justify”. According to the same source, the association reported the problem to the Government, through the State Secretariats for Energy and Fiscal Affairs.
The official admits that fraud is not new, but has worsened in recent months, as Spain and Italy tightened their grip on illegal networks. The Spanish press has reported that many of these structures have moved to Portugal, where tax control is less demanding.
Portuguese legislation under scrutiny
Galp, the main supplier to the Portuguese retail market, was one of the most affected. Several of its customers were approached with price proposals of up to 12 cents lower per liter. Despite the reinforcement of supervision, EPCOL considers that national legislation remains “insufficiently dissuasive”, defending stricter rules for imports and the requirement of proof of financial capacity for operators.
According to , Spain has already adopted firmer measures, such as the ban on resellers selling to wholesalers and the obligation to pay VAT in advance or present bank guarantees. For António Comprido, Portugal must follow the example of its neighboring country, otherwise it will remain vulnerable to practices that distort competition and harm the State and consumers.
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