European Public Prosecutor's Office dismantles VAT fraud ring

On September 16, 2026, authorities from Austria, Bulgaria, Germany, and Cyprus conducted a coordinated international operation under the direction of the European Public Prosecutor's Office to dismantle a large-scale VAT fraud scheme. The investigation centers on the illegal avoidance of value-added tax payments totaling 15.7 million euros, linked to online sales of mobile phones in Germany.

The criminal network operated through a cross-border trade structure involving companies in Bulgaria, Germany, and Cyprus. As a result of the operation, four individuals were arrested: three in Bulgaria and one in Germany. Additionally, authorities have moved to freeze the assets of two suspects and two involved companies to prevent the dissipation of funds.

The investigation highlights the ongoing efforts of the European Public Prosecutor's Office to combat cross-border financial crimes that undermine the European Union's tax systems. While the initial raids have been completed, authorities continue to process the evidence gathered during searches of residential properties, business premises, and company offices across the involved jurisdictions.