Investigators in Germany have carried out eight searches and arrested one person in an inquiry into suspected €18 million VAT fraud linked to sales of small electronic goods.
The searches were carried out in the federal states of Saarland and Saxony, including company premises, warehouses and the homes of four suspects — among them the employee who was arrested, the European Public Prosecutor’s Office (EPPO) announced on Thursday.
A court also granted an order to seize €18 million at EPPO’s request.
The case concerns suspected “VAT carousel fraud”, a scheme that exploits EU rules under which cross-border sales between member states are generally exempt from value-added tax (VAT).
The company under investigation is suspected of buying goods from German suppliers and selling them to so-called “missing traders” in Italy, the Netherlands, Portugal and Slovakia.
Some German suppliers allegedly acted as buffer companies using false invoices to conceal the suspected fraud, while other suppliers are suspected of issuing invoices for transactions that did not take place.
Suspected claims over 2019–2023
At least some of the goods are suspected to have circulated repeatedly within the network, being resold through intermediary companies back to the original suppliers, according to the EPPO.
The company allegedly claimed about €18 million in undue VAT refunds between 2019 and 2023.
The EPPO said all those concerned are presumed innocent unless proven guilty in the competent German courts.
