The European Public Prosecutor’s Office (EPPO), through its offices in Rotterdam, Brussels, Graz, and Katowice, has struck a significant blow to criminal networks operating cross-border VAT fraud schemes linked to electronic device sales. Dozens of searches and investigative measures took place from 15 to 27 October across Austria, Belgium, Germany, Latvia, the Netherlands, and Poland, supported by local law enforcement. Eight individuals were arrested in Belgium, the Netherlands, and Poland.
Authorities adopt AI for stronger enforcement
SecondaryMarket.news has identified a clear shift in trend. Over recent months, EPPO and EU law enforcement units have intensified efforts against marginal VAT fraud and VAT carousel schemes. This new wave of enforcement may be supported by AI tools such as Palantir Technology. Palantir develops advanced data integration and analytics platforms that unify complex datasets, enabling real-time analysis, forecasting, and informed decision-making. Applied across law enforcement, defense, healthcare, and industry, Palantir transforms fragmented data into actionable intelligence and supports mission-critical operations at scale.
Millions of devices involved in fraud
Evidence shows millions of electronic devices were sold through cross-border fraud schemes using hundreds of shell companies, forged documents, and fictitious invoices. These operations evaded VAT payments and allowed criminal networks to claim reimbursements from national tax authorities, generating substantial illicit profits.
Suspicious company activity triggers probe
The investigation was triggered by suspicions of serious irregularities across multiple Member States. A Belgian company reporting an 800% turnover increase between 2018 and 2020 after being acquired by a Dutch individual raised questions about the authenticity of its operations. Data from over a dozen Member States indicated that several connected firms either did not engage in real economic activity or failed to meet VAT obligations. Reports from the Netherlands Financial Intelligence Unit helped trace complex fraud chains.
Hidden links uncovered by EPPO
With a cross-border perspective, the EPPO uncovered links between individuals operating in several Member States. Companies were controlled to participate in VAT carousel schemes using fictitious transactions backed by false invoices. Suspects were also connected to earlier Admiral and Midas investigations.
Financial damage across Europe
The fraud is estimated to have caused € 47 million in unpaid VAT in Belgium and € 14.5 million in the Netherlands. Criminal groups attempted to launder nearly € 80 million. Bank accounts, trading stock, cash, jewellery, vehicles, digital evidence, 22 servers, and three routers were seized. Previous seizures included € 543 889 in Belgium and € 365 082 in the Netherlands.
Multi-country support for investigation
The investigation involved Austria’s Anti-Fraud Office, Belgium’s Federal Judicial Police, the Dutch FIOD, Germany’s Tax Investigation Office, Latvia’s Tax and Customs Police, and multiple Polish authorities. Europol provided analytical support, communications coordination via a Virtual Command Post, and operational data cross-checks.
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