The European Public Prosecutor’s Office (EPPO) in Greece said Tuesday it had conducted searches and seizures 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.
Based on the investigation, the suspected scheme is believed to have caused losses of at least €46.9 million to the EU and Greek budgets through unpaid VAT, while authorities have identified indications that a further €24.2 million in VAT was either not paid or incorrectly declared.
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.
At issue is a suspected VAT carousel fraud scheme, a criminal scheme that exploits the VAT exemption applicable to cross-border transactions between 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.
