- EPPO-led raids in 19 countries targeted a suspected criminal network that allegedly sold over 1 million used mobile phones as new, causing an estimated €30 million-plus VAT loss across multiple EU member states.
- The scheme allegedly used shell companies in several EU countries and Switzerland to apply the reduced VAT “margin taxation” regime since 2018, even though the phones were not eligible because they were not resold used goods with VAT already paid.
- Under margin taxation, VAT is due only on the reseller’s profit margin; here, because the phones were represented as new, VAT should have been charged on the full sale price.
- The investigation involved over 160 searches and seizures and seven arrests, including the two alleged leaders of the organization.
- The case was triggered by an OLAF report and concerns VAT fraud affecting sales to consumers throughout the EU.
Source: eppo.europa.eu
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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