European Public Prosecutor's Office investigates cross-border VAT fraud network

The European Public Prosecutor's Office (EPPO) has launched an investigation into an alleged carousel VAT fraud scheme involving the trade of small electronics and money laundering. The operation, which began roughly a year ago, covers the period between 2021 and 2025 and involves entities registered in Greece, Cyprus, Bulgaria, and the Czech Republic. Extensive investigations and seizures were conducted by the EPPO in the Attica and Kastoria regions of Greece. While the EPPO states the investigation extends to Cyprus, local Cypriot authorities clarify that no searches or investigative measures have been carried out on their soil. Instead, the involvement of the Cyprus Republic has been limited to the exchange of information and judicial cooperation through European Delegated Prosecutors. The suspected network utilized a chain of missing traders to evade VAT obligations or illegally claim tax refunds on cross-border transactions. The investigation remains ongoing as authorities continue to monitor the interconnected network of companies across the European Union.