Fuel VAT fraud gains ground in Portugal

Born in Italy, the fraud crossed the border and arrived from Spain, where it caused losses of 800 million euros. Previous estimates by EPCOL already pointed to annual losses of around 50 million euros here.

Tax fraud associated with VAT in the fuel sector, which began in Italy and was consolidated in Spain, will be gaining more and more ground in Portugal.

The scheme is based on the creation of ghost-companies who sell fuel at artificially low prices, then avoid paying VAT to the State. The main national oil companies warn this Tuesday that the practice is growing and demand an urgent response from the Government to stop the phenomenon, which is already causing significant losses to public coffers and distorting competition in the market.

The fraud mechanism is simple but effective. Criminal networks create fictitious companies that buy and sell fuel, offering gas stations prices below market values. When the time comes to pay VAT to the State, these entities disappearleaving the tax authorities with no chance of collection.

In Spain, this type of scheme involved hundreds of operators and caused losses of around 800 million euros in 2024before authorities strengthened legislation and dismantled the networks. Recently, many of the players appear to have transferred their operations to Portugal, taking advantage of more permissive legislation and oversight gaps.

António Comprido, general secretary of the Portuguese Association of Petroleum Companies (EPCOL), confirms that the problem is getting worse. “There is an increase in the number of grooming offers, with unaffordable prices which will only be possible with non-compliance with tax obligations”.

EPCOL claims to have already alerted the Government, and the State Secretariats for Fiscal Affairs and Energy are analyzing the problem. The sector calls for stricter legislation, particularly with regard to the financial guarantees required from companies operating in the sale of fuels.

Another proposal involves increase reporting obligations. Currently, gas stations are required to report sales and prices charged to ENSE’s Balcão Único, but not purchases made. For the sector, crossing this data would allow us to quickly identify anomalies and prevent fraudulent schemes.

Fraud is not the only problem affecting the sector. In addition to tax evasion in VAT, there is also cases of non-compliance in the incorporation of biofuels and payment of strategic reserves to the National Entity for the Energy Sector (ENSE). ENSE itself, together with the GNR, has intensified inspection operations at the border, seeking to stop the irregular transport of fuels between Portugal and Spain.

Last week, a joint operation resulted in the interception of around 90 cisternswhich corresponds to more than three million liters of petroleum products.

The real scale of fraud in Portugal is still difficult to quantify, but previous EPCOL estimates point to annual losses of around 50 million euros. With the transfer of Spanish networks to national territory, the value could now be much higher.