Bulgarian link in European prosecutors probe into millions of euro VAT fraud
The European Public Prosecutor’s Office (EPPO) in Athens (Greece) conducted searches and seizures last week at several locations in Attica and Kastoria, as part of an ongoing investigation into suspected VAT carousel fraud involving the trade of small electronic goods and the laundering of criminal proceeds, EPPO said on July 14.
The investigation, which began almost one year ago, has so far revealed a complex network of companies established in Bulgaria, Cyprus, Czechia and Greece, allegedly used to trade small electronic goods across the EU, EPPO said.
At issue is a suspected VAT carousel fraud scheme, a criminal scheme that exploits the VAT exemption applicable to cross-border transactions between EU member states.
According to the evidence gathered so far, between 2021 and 2025, the suspects allegedly used a chain of so-called missing traders – companies created for the purpose of evading VAT obligations – to distribute electronic goods within Greece and other EU countries, while avoiding the payment of VAT or enabling the fraudulent reimbursement of VAT that had never been paid.
Based on the investigation, the suspected scheme is believed to have caused losses of at least 46.9 million euro to the EU and Greek budgets through unpaid VAT. In addition, investigators identified indications that a further 24.2 million euro in VAT was either not paid or incorrectly declared.
The searches targeted the headquarters of several companies under investigation, as well as the residences of their managers and were carried out by the Hellenic Internal Affairs Agency of Law Enforcement Bodies, which is also carrying out the criminal investigation. They are supported by the Sub-Directorate of Digital Forensic Research and Analysis of the Hellenic Forensic Science Division.
During the searches, investigators seized large quantities of documents, accounting records and digital evidence, as well as 99 000 euro in cash and three luxury cars.
The investigation also resulted in the freezing of cryptocurrencies worth approximately 900 000 euro and other digital assets valued at around 4.5 million euro. According to the Greek authorities, this constitutes the largest freezing of digital assets ever carried out at national level. The assets were identified and frozen through advanced digital forensic analysis and targeted searches to bypass complex digital obstacles.
In addition, freezing orders were issued for 88 real estate properties with an estimated value exceeding 4.5 million euro, as well as for multiple bank accounts. The Hellenic Anti-Money Laundering Authority supported the identification and freezing of bank accounts in other EU member states.
All persons concerned are presumed innocent until proven guilty in the competent Greek courts of law, EPPO said.
(Photo: Miroslav Saricka/ freeimages.com)
