EU VAT Fraud Investigation “Kingdom”: €13 Million Scheme Uncovered, Seven Suspects Arrested

The European Public Prosecutor’s Office (EPPO) in Brussels, Belgium, recently led an investigation, codenamed “Kingdom,” which resulted in the arrest of seven individuals in the Netherlands for a €13 million VAT fraud scheme.

scheme overview

A Belgian subsidiary of a Dutch company requested and received €13.7 million in VAT refunds from the Belgian Treasury, of which €3.7 million was returned due to suspicion of fraud.
The investigation uncovered that no actual goods were traded, and only fake invoices and fraudulent VAT declarations were submitted to Belgian tax authorities.
The Dutch company involved was a known “missing trader,” used exclusively for obtaining fraudulent tax refunds via EU rules on cross-border transactions.

suspects and their activities

All suspects were living in the Netherlands at the time and had previously been known to law enforcement for similar offenses.
After the initial VAT refund in Belgium, they tried to replicate the scheme with another Dutch company under their control, seeking over €4 million in refunds.
Some of the illicit gains were transferred to the United Arab Emirates, while the remainder was spent on luxury cars, expensive goods, and gambling in casinos.

seizure of assets

Raids on May 23, 2024, targeted companies in the Netherlands and the suspects’ residences.
Over €200,000 worth of luxury goods, €7,000 in cash, and a car were seized.
Previous Dutch investigations had already led to the seizure of two Porsches, one Lamborghini, and four bank accounts worth €671,000, that are now subject to confiscation in this EPPO investigation.

the EPPO’s role

The EPPO is the independent public prosecution office of the European Union, responsible for investigating, prosecuting, and bringing to judgment, crimes against the EU’s financial interests.

suspects presumed innocent

All suspects remain presumed innocent until proven guilty in the competent Belgian courts of law.