VAT fraud on fuel sales is a persistent problem in many European countries, largely due to the continued rise in fuel prices. Although various measures have been put in place to try to counter this fraud, it remains difficult to eradicate. With fuel prices increasing significantly in recent years, it makes sense that many drivers are turning to the most economical options, including low-cost gas stations, which have also increased in popularity.
What is diesel fraud?
Diesel fraud involves the sale of fuel at reduced prices in certain stations-service. These stations offer diesel at prices well below average, and the reason is simple: they cheat! If these stations are accused of being less expensive than their competitors, there must be a trick… The process is always the same. At the pump, the customer pays the 20% VAT, but this amount is never returned to the State. Furthermore, certain stations also participate in another equally reprehensible fraud: that of gasoline or diesel adulterated. Poor quality mixtures, sometimes with impurities or even water, can be very harmful to the engine.
In the worst case, it can even cause irreversible damage. In any case, diesel fraud is an illegal act. And anyone who buys from a supplier charging these prices, while being aware of the situation, is also complicit in this offense.
Controls are almost non-existent
Generally, gas stations that don’t pay VAT don’t last long… They operate for a while, then quickly disappear when discovered. In some southern European countries, such as Spain for example, this practice is apparently very widespread. Often, the government is well aware of the situation, but finds itself relatively powerless to deal with it. In Spain, the State even thinks that the situation will get worse. To measure the scale of the problem, it is estimated that diesel fraud causes a loss of revenue of around a billion euros for the tax authorities, just for the year 2023.
There is also another form of fuel fraud: “driving on red”. This involves using non-road diesel (NGR), domestic fuel oil or heating oil to run your diesel vehicle. These alternative fuels are less expensive than diesel, because they benefit from specific taxation. Finally, in addition to the illegality of this practice, it also presents risks for your car’s engine.
Source: www.autoplus.fr
