- A large-scale international operation targeting VAT fraud has led to the arrest of 32 individuals in the Baltic states.
- The operation is part of a broader investigation called ‘Investigation Admiral’ initiated in 2022 by the Tax and Customs Police of Latvia and the European Public Prosecutor’s Office (EPPO).
- The investigation uncovered a complex VAT fraud scheme linked to the sale of electronic goods, resulting in an estimated loss of approximately 297 million euros to EU budgets.
- The operation involved law enforcement agencies from 16 countries, with 624 personnel participating, including various police and customs departments.
- The fraud scheme is believed to involve over 400 companies, which may also be linked to money laundering from drug trafficking and cybercrimes, with potential connections to Russian organized crime.
- Buyers paid VAT on goods, but the companies involved defaulted on tax obligations, transferring funds to offshore accounts.
- The investigation revealed that the syndicate used a similar operational model to previous VAT fraud cases, exploiting EU rules on cross-border transactions exempt from VAT.
- Over 300 searches were conducted across 16 European countries during the operation.
Source: eng.lsm.lv
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.
