Massive VAT Fraud Uncovered: 400 Companies Involved in €297 Million Scheme

• Europol and the European Public Prosecutor’s Office (EPPO) dismantled an international criminal network involved in large-scale VAT fraud and money laundering.
• The operation, codenamed Operation Admiral 2, revealed a complex fraud scheme involving popular electronics, leading to an estimated €297 million in VAT evasion.
• Authorities arrested 32 suspects, froze 62 bank accounts worth over €5.5 million, and seized luxury goods, including electronics valued at €47.5 million.
• The fraud involved VAT carousel schemes, with companies set up in 15 EU member states selling over €1.48 billion in electronic goods online.
• Although consumers paid VAT, the taxes were never remitted to tax authorities; instead, other companies in the chain claimed VAT refunds, causing significant losses for national treasuries.
• More than 400 companies were implicated, with the scheme also laundering proceeds from drug trafficking, cybercrime, and investment fraud.
• Evidence suggests connections to Russian criminal networks that contributed assets in exchange for payments and influence.
• The operation involved over 300 searches in countries like the Netherlands, Germany, and France, with 36 arrests in Latvia and Lithuania, coordinated by Europol, Eurojust, and the EPPO.
• This investigation builds on the previous Operation Admiral from 2022, which was considered the largest VAT fraud in the EU, with estimated damages of €2.9 billion.
• Ongoing investigations are expected to yield new revelations.

Source: fiscaalvanmorgen.nl

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.

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