Seven Suspected in €13M VAT Fraud Scheme: Dutch Criminals Target Belgium’s Tax System with EU Rules

Arrests Made in Major Trans-European Financial Crime Investigation

• European Public Prosecutor’s Office (EPPO) in Brussels, Belgium, arrests seven suspects in Netherlands
• Suspects allegedly orchestrated €13M VAT fraud using Dutch companies with subsidiaries in Belgium

Belgian Treasury Paid out €13.7M in Refunds

• Belgian Treasury paid €13.7M into suspects’ bank accounts following subsidiary’s request for tax refund
• €3.7M of the funds were returned by a Belgian bank, suspecting fraud

Investigation Finds Alleged Invoices and VAT Declarations Are Fake

• No actual goods were traded
• Submitted invoices and VAT declarations were found to be falsified

‘Missing Trader’ Dutch Company Involved in Fraud

• Company was known to Dutch authorities for cross-border EU transactions tax fraud
• Suspects attempted to claim €4M VAT refund through another Dutch company

Seizure of Assets and Luxury Goods during Raids

• Searches conducted on premises of Dutch companies associated with accused and their residences
• Luxury goods worth more than €200,000, €7,000 cash, and a car seized during raids
• Prior Dutch money laundering investigation involved confiscation of two Porsches, one Lamborghini, and four bank accounts holding €671,000

European Public Prosecutor’s Office Investigation

• All those concerned remain innocent until proven guilty in Belgian courts of law
• EPPO is responsible for investigating, prosecuting, and judging financial crimes against the EU