EU dismantles tax evasion network in Greece

The European Public Prosecutor’s Office (EPPO) in Athens carried out searches and seizures last week at various locations in Attica and Kastoria, as part of an ongoing investigation into suspected VAT fraud involving the trade of small electronic devices and the laundering of proceeds from criminal activities.

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The investigation, launched almost a year ago, has so far uncovered a complex network of companies set up in Bulgaria, Cyprus, the Czech Republic and Greece, which are believed to have been used to trade small electronic devices across the European Union.

At the centre of the case is an alleged VAT carousel fraud scheme, a criminal system that exploits the VAT exemption applying to cross-border transactions between EU member states. According to the evidence gathered so far, between 2021 and 2025, the suspects are thought to have used a chain of so-called “missing traders”, companies created to trade in goods, charging VAT and then absconding without paying the tax due to the relevant government. In some cases, they may have claimed unlawful refunds of VAT on goods they purchased, which had never been paid.

On the basis of the investigation, the alleged scheme is estimated to have caused losses of at least 46.9 million euros to the budgets of the European Union and Greece as a result of unpaid VAT. Investigators have also found indications that a further 24.2 million euros in VAT was either not paid or wrongly declared.

The searches targeted the headquarters of several companies under investigation, as well as the homes of their managers, and were carried out by the Internal Affairs Service of the Security Forces, which is also conducting the criminal investigation. The Digital Forensic Investigation and Analysis Subdirectorate of the Directorate of Criminal Investigations (DEE) assisted in the operation.

During the searches, the investigative authorities seized large volumes of documents, accounting records and digital evidence, as well as 99,000 euros in cash and three luxury cars.

The investigation also led to the freezing of cryptocurrencies with a total value of roughly 900,000 euros, along with other digital assets worth about 4.5 million euros.

According to the Greek authorities, this is the largest seizure of digital assets ever carried out at national level. The assets were traced and frozen using advanced digital forensic analysis methods and targeted investigations designed to overcome complex digital obstacles.

In addition, freezing orders were issued for 88 properties, with a total estimated value of more than 4.5 million euros, as well as for numerous bank accounts. The Anti-Money Laundering Authority contributed to the identification and freezing of bank accounts in other EU member states.