VAT and excise refundable on red diesel?

Red diesel, well recognizable by its red color, is a form of fuel used mainly in agricultural, maritime and industrial sectors. Red diesel is currently prohibited for road transport in the Netherlands and many other European countries.

Red diesel, well recognizable by its red color, is a form of fuel used mainly in agricultural, maritime and industrial sectors.

Belgium is one of the few countries that still allows it, but only as fuel for cooling engines. If red diesel is used as regular propulsion fuel, the authorities treat this as an offence. When red diesel is used correctly in Belgium, the paid VAT can still be reclaimed. Red diesel is attractive because it is cheaper than regular diesel due to its lower excise rate. However, that lower rate rules out further Belgian excise-duty refunds.