Raids in Greece bust €46.9m cross-border VAT fraud ring
EU prosecutors have dismantled a multi-country VAT fraud ring in Greece, freezing millions in digital and physical assets in a landmark case for European tax enforcement.
European prosecutors and Greek police carried out raids last week in Attica and Kastoria, dismantling a suspected cross-border VAT fraud network tied to the trade of small electronic devices. The operation, led by the European Public Prosecutor's Office (EPPO) in Athens, targeted the headquarters of several companies under investigation as well as the private homes of their managers. During the searches, authorities seized large volumes of accounting records, digital evidence, €99,000 in cash, and three luxury cars.
At the centre of the alleged scheme is a VAT carousel fraud operating between 2021 and 2025. The network utilized a complex chain of "missing traders"—shell companies established in Bulgaria, Cyprus, the Czech Republic, and Greece. These entities exploited the EU's VAT exemption on cross-border transactions by purchasing goods, charging VAT to buyers, and then absconding without paying the tax to the relevant government authorities. In certain instances, the suspects also allegedly claimed unlawful refunds for VAT that was never paid.
The financial damage is substantial. The confirmed losses to the budgets of the European Union and Greece stand at a minimum of €46.9 million in unpaid VAT. Furthermore, investigators have identified strong indications that an additional €24.2 million in VAT was either not paid or incorrectly declared.
This case underscores an ongoing vulnerability within the European single market. Carousel fraud continues to drain public revenues because it specifically weaponizes the seamless, tax-exempt movement of goods between member states. For legitimate businesses in the electronics sector, such schemes distort competition by artificially lowering prices for fraudulent operators, while shifting the tax burden onto honest companies and consumers.
Greek authorities noted a particular milestone in the investigation's asset recovery phase. Using advanced digital forensic analysis to bypass complex obfuscation techniques, investigators froze cryptocurrencies worth roughly €900,000 and other digital assets valued at approximately €4.5 million. Greek officials confirmed this represents the largest seizure of digital assets ever carried out at the national level.
The operation also secured freezing orders for 88 properties with an estimated value exceeding €4.5 million, alongside numerous bank accounts. The EU's Anti-Money Laundering Authority played a critical role in identifying and freezing those bank accounts located in other member states. The criminal investigation, which has been running for nearly a year, was conducted by the Internal Affairs Service of the Security Forces with technical assistance from the Digital Forensic Investigation and Analysis Subdirectorate.
