A sophisticated Value Added Tax (VAT) fraud scheme targeting fuel sales, which has already cost European states hundreds of millions of euros (hundreds of millions of U.S. dollars), has now been detected in Portugal.
Portuguese tax authorities and police are collaborating with international counterparts to dismantle the illicit operation. The widespread scheme involves establishing fictitious companies. These entities serve as intermediaries in fuel transactions.
They issue invoices that include VAT, but the collected tax is never remitted to government coffers. This mechanism facilitates large-scale tax evasion and illicit enrichment.
The fraud severely distorts market competition within the energy sector. Legitimate businesses that adhere to tax regulations are penalized.
Experts warn that beyond direct revenue loss, such schemes undermine the integrity of the market itself. The Portuguese Tax and Customs Authority and the Judiciary Police are actively participating in a joint international investigation. This effort aims to identify those responsible and halt the expansion of the fraudulent network.