- Slovak authorities, led by the EPPO, searched import firms, customs agents and transport companies in a probe into suspected customs and VAT fraud on textile and footwear imports from China.
- The alleged scheme abused Customs Procedure 42 (CP42), which allows import VAT deferral when goods are shipped onward to another EU state, by falsely declaring destination countries and then diverting the goods elsewhere without VAT being paid where received.
- Investigators say the fraud ran from January 2016 to December 2019 and involved at least 3,681 fraudulent customs declarations across several EU entry points.
- The scheme allegedly also included systematic undervaluation to cut customs duties, causing estimated losses of at least €44.3 million in customs duties and more than €190 million in unpaid VAT.
- EPPO also suspects corruption involving customs, tax administration and law enforcement officials who allegedly took bribes to facilitate release of the undervalued goods.
Source: vatabout.com
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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