- The European Public Prosecutor’s Office (EPPO) has conducted 25 raids in six countries as part of an investigation into a £16 million VAT fraud involving used mobile phones.
- The investigation, code-named ‘Concertina’, is led by the EPPO in Munich and spans Bulgaria, Germany, Italy, Malta, the Netherlands, and Slovenia.
- During the raids, documents, electronic devices, and evidence were seized, along with £27,000 in cash Euros and cryptocurrency worth approximately £34,000.
- Several bank accounts have been frozen, with at least £76,000 seized so far.
- The fraud scheme involved companies fraudulently applying reduced VAT to the sale of second-hand mobile phones imported from non-EU countries, in order to increase their profits.
- The companies under investigation charged reduced VAT when the full rate was due, allowing them to sell the phones at a lower market price and causing unfair competition.
- Four suspects worked together to defraud tax authorities in Bulgaria, Germany, and Slovenia of VAT due on used smartphones imported from the US and other countries.
- The suspects set up a chain of companies engaged in seemingly legitimate transactions to dissimulate the switch to margin taxation, despite not meeting the requirements for its application.
- The companies involved in the fraud are located in Bulgaria, Germany, and Slovenia and are managed by the four individuals under investigation.
- The estimated damage from the VAT fraud is at least €19 million, and some of the illicit profits may have been concealed in bank accounts.
Source: mobilenewscwp.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
