The European Public Prosecutor’s Office (EPPO) in Munich has led an operation resulting in the arrest of three individuals on April 1 as part of an ongoing investigation into a €50 million VAT fraud scheme. Searches were conducted across Germany, Bulgaria, and Poland, the Luxembourg-based institution announced.
Authorities in Berlin, Sofia, and Warsaw coordinated efforts in the enforcement actions, which involved the Tax Investigation Office in Berlin, the Bulgarian National Investigation Service, the General Directorate of the National Police in Sofia, and the Polish Central Anti-Corruption Bureau.
Investigators allege that the arrested individuals acted as front persons for German traders and intermediary companies, facilitating a complex cross-border VAT carousel fraud related to the sale of electronic goods. This type of scheme exploits EU regulations exempting value-added tax on transactions between member states.
The three suspects are accused of being part of an organized crime group responsible for misappropriating €50 million in VAT. Two of them were released after cooperating with authorities and providing further details regarding key figures in the operation.
The case is closely linked to a larger, Europe-wide investigation known as Midas, which spans 17 countries and is estimated to have resulted in €195 million in VAT fraud. The investigation remains ongoing.