(Luxembourg, 5 June 2025) – This week (3 June), the European Public Prosecutor’s Office (EPPO) in Frankfurt and Cologne (Germany) moved against suspected criminal groups, believed to have orchestrated cross-border VAT fraud schemes with an estimated tax damage of in total over €100 million through the sale of smartphones and other electronic devices.
During the transnational action led by the EPPO, four people were arrested, three in Germany and one in France, and around 90 searches were carried out in five countries (France, Germany, Hungary, Lithuania, the Netherlands). Over 300 tax and police investigators supported the investigative measures.
Seizing orders of over €37 million were executed by law enforcement and tax investigators during the searches. Luxury vehicles and other luxury goods, bank accounts, cash and a vast quantity of electronic devices were seized. During the searches, investigators also found boxes that were supposed to contain smartphones. Instead, they were filled with stones – allegedly to create the appearance that merchandise had been shipped between the companies involved in the fraud scheme.
According to the investigation, code-named Supernova, the suspects were engaged in cross-border VAT 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 – trading with smartphones and other electronic devices.
All persons concerned are presumed innocent until proven guilty in the competent courts of law.
The European Public Prosecutor’s Office (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 Investigation Offices in Mannheim and Ulm (Steuerfahndungen Mannheim & Ulm), Tax Investigation Offices from the federal states of Baden-Wurttemberg, Bavaria, Hesse, Rhineland-Palatinate (Baden-Württemberg, Bayern, Hessen, Rheinland-Pfalz), State Office for Combating Financial Crime North Rhine-Westphalia (Landesamt zur Bekämpfung der Finanzkriminalität NRW), police in Mannheim and Cologne (Polizeipräsidium Mannheim und Polizeipräsidium Köln), public prosecutor's office Mannheim (Staatsanwaltschaft Mannheim)
- France: Judicial Customs Investigation Office Paris (ONAF, Office National Anti-Fraude, Unité de Douane Judiciaire de Paris), police
- Hungary: National Tax and Customs Administration Directorate General for Criminal Affairs Central Investigation Department (Budapest), Regional Directorates of the National Tax and Customs Administration, Hungarian Patrol Officers, Chief Prosecution Office of Budapest
- Lithuania: Financial Crime Investigation Service (Finansinių nusikaltimų tyrimo tarnyba – FNTT)
- The Netherlands: Fiscal Information and Investigation Service (FIOD)