At the request of the European Public Prosecutor’s Office (EPPO) in Munich (Germany), three suspects have been arrested, and multiple searches were carried out in Germany, Bulgaria, and Poland this week (1 April), in an ongoing investigation into a €50 million VAT fraud scheme involving the trade of electronic goods. 

The enforcement actions were executed in cooperation with the Tax Investigation Office in Berlin (Steuerfahndung Berlin), the Bulgarian National Investigation Service (Национална Следствена Служба), the General Directorate National Police (Главна Дирекция Национална Полиция) in Sofia, and Poland’s Central Anti-Corruption Bureau (CBA).

According to the investigation, the suspects acted as strawmen for German missing trader and buffer companies, taking part in a cross-border VAT carousel fraud – a complex criminal scheme that takes advantage of EU rules on cross-border transactions between its Member States, as these are exempt from value-added tax – trading with electronic devices.

The suspects are allegedly part of an organised crime group responsible for defrauding €50 million in VAT. Two of the three individuals were released on the day of their arrest after cooperating with authorities and providing further information on the ringleaders.

The investigation remains ongoing and is directly connected to the EPPO investigation cluster Midas, a large-scale VAT fraud spanning 17 countries and involving an estimated damage of €195 million.

All persons concerned are presumed innocent until proven guilty in the competent courts of law.

The European Public Prosecutor’s Office (EPPO) is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU.