Title: Unraveling a €13M VAT Fraud Scheme: EPPO and Belgium’s CDGEFID Collaborate on Major Breakthrough

(Brussels, 24 May 2024)

Arrest of Seven Suspects Connected to €13M VAT Fraud Targeting Belgian Treasury

The European Public Prosecutor’s Office (EPPO) and Belgium’s Central Unit for Economic Crime (CDGEFID) have made a significant development in investigating a €13 million Value-Added Tax (VAT) fraud scheme, with the arrest of seven suspects in the Netherlands.

Significant Fraud Concerns Raise Suspicions

A subsidiary of a Dutch company based in Belgium, under investigation for requesting a VAT refund of €13.7 million, became a suspect when an unusually large amount– €3.7 million– was returned to the Belgian Treasury.

Investigations revealed that the Belgian tax authorities had been presented with fabricated invoices and false VAT declarations, leading to an unlawful VAT refund claim.

Missing Trader Identified

The Dutch company, identified as a “missing trader” involved in a fraudulent scheme, was discovered to have been operating with the intent to defraud EU rules on cross-border transactions and obtain VAT refunds illegally.

Hiding Ill-Gotten Gains

The suspects attempted to hide their ill-gotten gains by transferring some money to the United Arab Emirates and spending the rest on luxury cars, valuable goods, and gambling.

Seizure of Assets and Luxury Goods

Aiming to seize proceeds from the unlawful Belgian VAT refund, law enforcement executed warrants at companies and the residences of the suspected individuals. The raids led to the seizure of luxury goods worth over €200,000, €7,000 in cash, and a high-value vehicle.

Previous Investigations and Confiscation of Seized Assets

Law enforcement agencies, including the Dutch Fiscal Information and Investigation Service (FIOD) and the Dutch Public Prosecutor’s office, had previously seized assets, such as luxury cars– including Porsches and a Lamborghini – and bank accounts totaling €671,000, which are believed to have been acquired with proceeds from the unlawful Belgian VAT refund.

Responsibility of EPPO

The European Public Prosecutor’s Office, as an independent EU institution, is responsible for investigating, prosecuting, and bringing criminals to justice who commit crimes against the financial interests of the European Union. All those involved are considered innocent until proven guilty by the Belgian court of law.

About the European Public Prosecutor’s Office (EPPO)

The EPPO is a European Union public prosecution office dedicated to investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU. It was established to make Europe a safer place by improving the uniformity and effectiveness of EU Member States’ responses to financial and economic crime.