(Luxembourg, 4 March 2026) – The European Public Prosecutor’s Office (EPPO) in Berlin and Cologne (Germany) and Prague (Czechia) are leading an EU-wide strike against a suspected criminal organisation, believed to have orchestrated cross-border VAT fraud schemes with an estimated tax damage of over €103 million through the sale of luxury cars.
Nine suspects were detained in Czechia (5) and Germany (4) and over 150 searches were carried out in nine countries (Austria, Bulgaria, Croatia, Czechia, Germany, Hungary, Italy, Poland, Slovakia). Over 1100 tax and police investigators are supporting the investigative measures and managed to seize luxury cars, cash, art and other assets worth over €13.5 million so far.
According to the investigation, code-named Emily, the suspects were engaged in a cross-border VAT carousel fraud – a complex criminal scheme that takes advantage of EU rules on cross-border transactions between its Member States, as these are exempt from value-added tax – active in the trade of luxury cars.
It is believed that the main suspects, owners of a group of car dealerships in Berlin and Iserlohn/North Rhine-Westphalia, were the organiser and leader of a vast criminal network active in Austria, Croatia, Czechia, Germany, Italy, Slovakia. Several of the employees and managing directors of dozens of shell companies are under investigation as well.
Complex chains of transactions
The investigation revealed that the criminal network used ramified trading chains to establish or simulate cross-border sales of vehicles, often with purchase prices in the range of several hundred thousand euros. Within the trading chain, shell companies served as so-called missing traders, that failed to meet their tax obligations and thus avoided the payment of VAT due, whereas the next dealer involved in the chain was able to claim VAT refunds.
Further cross-border retail chains involving German service providers and intermediaries in Austria, Croatia, Czechia, Italy, Slovenia and Slovakia allowed the process to be repeated and to obtain tax refunds multiple times.
Human network behind the scheme
The investigation shows that the car trading companies of the main suspects seem to have played a key role in the fraud scheme, as they were supposedly not only beneficiaries of regular input tax refunds. They were also used as intermediaries for setting up retail chains for advertising luxury cars on online platforms on behalf of shell companies, and as warehouse operators that regularly dealt with high priced vehicles.
Furthermore, investigations into the shell companies have revealed that their managing directors were in reality strawmen from other EU countries like Bulgaria, Hungary and Poland.
Estimated damage only the tip of the iceberg
The offences allegedly committed by the criminal group’s members cover a period from 2017 to 2025. The total damage caused by the whole fraud system is estimated at over €103 million. Several investigations related to the criminal group and led by different EPPO offices, including Investigation Vortex, remain ongoing,
The investigations also counted on the support of Europol, through analytical assistance and coordination tools, with additional backing from national law enforcement agencies, highlighting the value of cross-border cooperation against organised crime.
All persons are presumed innocent until proven guilty by the competent 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.
List of most important partners and national authorities involved:
- Europol
- Germany: Tax Office for Investigation and Criminal Matters Berlin (Finanzamt für Fahndung und Strafsachen Berlin), State Criminal Police Office Berlin (Landeskriminalamt Berlin), State Office for Combating Financial Crime North Rhine-Westphalia (Landesamt zur Bekämpfung der Finanzkriminalität NRW), Tax investigation offices (Bremerhaven, Cottbus, Frankfurt/Oder, Hamburg, Heilbronn, Karlsruhe, Lüneburg, Offenbach, Reutlingen, Stuttgart, Heilbronn, Mainz, Munich, Hanover)
- Austria: Tax investigation office Innsbruck (Steuerfahndung Innsbruck)
- Croatia: National Police Office for the Suppression of Corruption and Organised Crime (Policijski nacionalni ured za suzbijanje korupcije i organiziranog kriminaliteta)
- Czechia: National Organised Crime Agency (NCOZ - Národní centrála proti organizovanému zločinu)
- Italy: Italian Customs (Agenzia delle Dogane e die Monopoli di Bolzano)
- National authorities from Bulgaria, Hungary, Poland, Slovakia