(Luxembourg, 31 October 2025) – The European Public Prosecutor’s Office (EPPO), through its offices in Rotterdam (the Netherlands), Brussels (Belgium), Graz (Austria) and Katowice (Poland), has struck a significant blow to criminal networks operating cross-border VAT fraud schemes linked to the sales of electronic devices.
Under the EPPO-led investigation, code-named ‘Escape Room’, dozens of searches and investigative measures were carried out from 15 to 27 October in Austria, Belgium, Germany, Latvia, the Netherlands and Poland, supported by law enforcement officers in those countries. Eight individuals were arrested in Belgium, the Netherlands and Poland.
Based on the evidence, millions of electronic devices were sold within cross-border fraud schemes all over Europe, using hundreds of shell companies, forged documents and fictious invoices, in order to evade the payment of VAT. In addition, the VAT fraud carousel allowed the criminal networks to claim VAT reimbursements from the national tax authorities, to which the alleged perpetrators were not entitled, all leading to substantial illicit profits.
Suspicions of serious irregularities involving companies in several Member States triggered this investigation. The activities of a Belgian company that experienced a turnover increase of more than 800% over three years (2018-2020), following its takeover by a Dutch individual, raised serious questions about the authenticity of its commercial operations and the companies involved. The analysis of data received from over a dozen Member States indicated that several firms appearing to have commercial relationships with the suspected company were either not engaged in actual economic activity or had not fulfilled their VAT obligations. Furthermore, suspicious action reports received from the Netherlands Financial Intelligence Unit contributed to tracing fraud chains in the country.
With its helicopter view, the EPPO was able to uncover hidden links between individuals operating across several Member States, taking control of companies that were then used to participate in a VAT carousel scheme, by recording fictitious transactions supported by false invoices. The evidence collected also indicates that the suspects had links with individuals in our Admiral and Midas investigations.
It is estimated that €47 million was lost in unpaid VAT in Belgium alone. In the Netherlands, the estimated damage is €14.5 million. The global damage caused to the EU and the national budgets by the fraudulent scheme is likely much higher. It is understood that members of the criminal groups have also attempted to launder funds worth nearly €80 million.
During the searches, bank accounts and trading stock were frozen, and a payable from a trading partner worth over €350 000 was withheld. Cash, jewellery and a vehicle were also seized, as well as possibly counterfeited electronic devices. In addition, digital evidence and documents were seized, together with 22 servers and three routers. Earlier in this investigation, a total of €543 889 had already been seized in Belgium, as well as €365 082 in the Netherlands.
The investigation was supported by the Austrian Anti-Fraud Office (Amt für Betrugsbekämfpung) and the Federal Ministry of Finance (Bundesministerium für Finanzen – BMF); Belgium’s Investigating judge (Antwerp) and the Federal Judicial Police (DJSOC/CDGEFID) of Brussels; the Dutch Fiscal Information and Investigation Service (FIOD) and the Netherlands Financial Intelligence Unit; Germany’s Tax Investigation Office in Berlin (Steuerfahndung Berlin); Latvia’s Tax and Customs Police Department of the State Revenue Service (Valsts ieņēmumu dienesta Nodokļu un muitas policijas pārvalde); as well as Poland’s Lower Silesian Customs and Tax Office (Dolnośląski Urząd Celno-Skarbowy); Central Bureau for Combating Cybercrime (Centralne Biuro Zwalczania Cyberprzestępczości); the Voivodship Police Headquarters in Kraków (Komenda Wojewódzka Policji w Krakowie); and the County Police Headquarters in Nowa Sól (Komenda Powiatowa Policji w Nowej Soli).
The EPPO could also count on the analytical support of Europol from an early stage. Europol also provided communications coordination via a Virtual Command Post and carried out operational data cross-checks.
All persons concerned are presumed to be innocent until proven guilty in 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.