Fuel companies liable for their gas stations

The tax administration has issued instructions to the customs control mechanism on the measures and fines they must impose in cases of fuel smuggling, and mainly on the obligations that the companies trading petroleum products and the refineries now have in relation to the gas stations, with which they do business (due diligence measures).

According to a decision of Independent Authority for Public Revenue (AADE) Governor Giorgos Pitsilis companies trading in oil products or refinery commodities are obliged to inform the AADE if they identify violations at a gas station they supply with fuel and, in particular, if the gas station:

• does not provide tax register data, operating license, certificates, responsible declarations and other prescribed data;

• does not allow a sample of the fuel it circulates to be taken for inspection;

• has not installed and does not operate a fuel input-output monitoring system;

• does not possess legal fuel or energy products.

After being informed, AADE will issue an order to all oil product trading companies and refineries to stop the supply of energy products to the gas station that committed the violation, and withdraw their signs, their pumps and the rest of their equipment from the gas station until the irregularities are remedied or the legal re-operation of the gas station begins, in case it is sealed.

The above also applies in the event that violations are detected directly by AADE.

At the same time, the decision specifies that the interruption of the distribution of energy products and the withdrawal of their signs, pumps and the rest of their equipment will also be imposed on any other gas station that is either 50% owned by a person who has been found to have violated the decision, or is managed by a person who owns or manages the service station which has been found to have violated the decision.

As emphasized in the decision, in the event that the liable companies do not inform the auditing authorities, sanctions will be imposed. Specifically, for companies, the law provides for due diligence measures, the violation of which leads to fines from 5,000 to 30,000 euros per gas station.