In a large-scale coordinated operation across five countries, the European Public Prosecutor’s Office (EPPO) has taken action against criminal networks suspected of orchestrating a cross-border VAT fraud scheme worth over € 100 million. The operation, part of an ongoing investigation named Supernova, focused on fraudulent trading of smartphones and other electronic devices. So, in this case it was not about marginal VAT fraud but good old reverse VAT fraud.
Seizures and arrests in five countries
On 3 June 2025, four individuals were arrested, three in Germany and one in France, while around 90 searches were carried out simultaneously in Germany, France, Hungary, Lithuania, and the Netherlands. These efforts were supported by more than 300 tax and police officers, coordinated under the authority of the EPPO offices in Frankfurt and Cologne.
Luxury goods and electronics confiscated
Seizing orders exceeding € 37 million were executed, leading to the confiscation of luxury vehicles, high-value consumer electronics, cash, and bank accounts. Authorities also discovered boxes intended to contain smartphones that were instead filled with stones, allegedly to simulate legitimate shipments between shell companies involved in the fraud.
Complex scheme exploiting EU VAT rules
The criminal operation exploited European Union rules that exempt cross-border business transactions from VAT. Suspects are believed to have manipulated these exemptions by creating artificial trade flows of Apple iPhones and similar electronics, enabling the evasion of significant tax obligations.
Multi-agency collaboration across Europe
National tax authorities and investigative bodies from Germany, France, Hungary, Lithuania, and the Netherlands played crucial roles. Europol also contributed to intelligence coordination. The EPPO, responsible for safeguarding the EU’s financial interests, leads the legal action.
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