Massive VAT Fraud Uncovered in Germany and Netherlands

The European Public Prosecutor’s Office (EPPO) recently carried out a major operation in the Netherlands and Germany targeting an alleged customs and VAT fraud ring involving Chinese nationals. The group is suspected of evading taxes and customs duties amounting to over 200 million euros, according to the EPPO. The EPPO, an independent public prosecution office of the European Union, is responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU. The operation, which took place on November 7, saw over 300 tax and customs investigators conducting searches at more than 200 locations. As a result, over 450,000 euros in cash, two luxury cars, over 80 smartphones, 30 hard disks, and several servers were seized. Additionally, four suspects believed to be the leaders of the scheme were arrested and are currently in custody.

The suspected organized crime group involving Chinese nationals allegedly imported large quantities of textiles, shoes, and electronics from China to the EU, using fake invoices to understate the value of these goods and reduce the customs duties payable. They are also suspected of evading VAT payments by exploiting a loophole in the EU importation mechanism that exempts VAT if goods imported from outside the EU are transported from one EU member state to another for final delivery. The group allegedly falsely claimed to ship the goods between EU countries to take advantage of this loophole.

In conclusion, the EPPO's successful operation in the Netherlands and Germany has resulted in the apprehension of key suspects and the seizure of significant assets. This sends a strong message that the EU is committed to combating financial crimes that threaten its economic interests.