EPPO Arrests Suspect in $79m Cross-Border VAT Fraud Probe

The European Public Prosecutor’s Office (EPPO) has made a further arrest in its ‘Escape Room’ investigation into a VAT carousel fraud network operating across six EU member states.

The network is alleged to have used hundreds of shell companies and fictitious invoices to disguise trade in electronic devices and evade VAT in Austria, Belgium, Germany, Latvia, the Netherlands and Poland. EPPO estimates losses of at least $79 million in the Netherlands and Belgium. Eight other suspects were arrested in Belgium, the Netherlands and Poland in October 2025.

Prosecutors allege the man now arrested acted as a broker between companies in the scheme, wrongly claimed VAT refunds, and kept the operation going through new companies after the 2025 raids. His activity alone may have caused losses of about $4.6 million. Authorities have seized around $4 million in assets, including real estate, a car, stock, receivables and bank accounts.

Article Credit: https://www.occrp.org/en/news/eppo-arrests-suspect-in-79m-cross-border-vat-fraud-probe