Six people and one company have been indicted in Czechia over an alleged VAT fraud worth more than €17.4 million linked to imports of goods from China, according to the European Public Prosecutor’s Office (EPPO).
The indictment was filed by the EPPO office in Ostrava at the Municipal Court in Prague, the EPPO announced on Monday.
The case concerns goods imported through companies that were registered for VAT in Czechia despite not being established there.
VAT is a consumption tax added to most goods and services in the EU.
After customs clearance, the defendants declared the goods had been supplied to companies in other EU member states.
Investigators believe those recipients were fictitious and that the goods were instead delivered to logistics centres operated by e-commerce platforms before being sold to consumers across the EU.
VAT due on the imports from China was allegedly neither declared nor paid.
Possible sentences and police cooperation
Four of the defendants and the company are accused of acting as part of an organised criminal group, while a fifth defendant is accused of acting independently and is not charged with participation in that group, the EPPO said.
If convicted, the four defendants and the company face prison sentences ranging from nine years to 13 years and four months, while the fifth defendant faces a sentence ranging from two to eight years.
The investigation was carried out in close cooperation with the National Centre against Organised Crime of the Czech Police, known by its Czech acronym NCOZ.
All suspects are presumed innocent unless and until proven guilty in Czech courts, the EPPO noted.
