(Luxembourg, 16 October 2025) – The European Public Prosecutor’s Office (EPPO) in Ostrava (Czechia) has charged seven suspects in an investigation targeting a large-scale VAT fraud scheme related to the trade of electronic goods, causing an estimated damage of over CZK 4.7 billion (approximately €187 million).
This Monday, at the request of the EPPO, 300 officers of the Czech Police‘s National Organised Crime Agency (NCOZ - Národní centrála proti organizovanému zločinu) carried out 19 house and company searches in Czechia. Simultaneous procedural measures were executed in Poland and Slovakia.
The investigation – code-named 'Záblesk' ('Flash', in English) – is focused on a group of individuals suspected of involvement in a long-term criminal scheme involving the import of electronic equipment from third countries – including Hong Kong, the United Arab Emirates and the United States – into the European Union, through companies based in Czechia.
These companies subsequently declared intra-community supplies of goods to entities registered in Hungary, Poland and Slovakia. However, these foreign entities had no real economic activity, did not take the delivery of the goods, and made no payments. The electronic equipment was instead delivered to other, as yet unidentified, recipients.
The estimated damage of the fraudulent scheme exceeds CZK 4.7 billion (approximately €187 million), making it one of the biggest VAT fraud cases to date in Czechia.
In total, ten individuals were apprehended, seven of whom have been formally charged with the serious criminal offence of tax fraud, specifically tax evasion and the unlawful reduction of mandatory payments. The court decided to place six of the charged persons in custody, while for one person, custody was substituted with probation supervision and a prohibition of leaving the country. If convicted, the suspects face prison sentences ranging from five to ten years.
During the searches, three real estate properties, luxury watches and cash were seized and bank accounts frozen for a total of CZK 42 million (approximately 1.6 million).
All persons concerned are presumed innocent until proven guilty in the competent Czech courts of law.
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.