(Luxembourg, 6 October 2025) – Last week (1 October), at the request of the European Public Prosecutor’s Office (EPPO) in Bologna, Palermo and Turin (Italy), the Italian Financial Police (Guardia di Finanza) of Prato carried out 15 searches and seized assets worth millions of euros, in an investigation into a suspected VAT carousel fraud involving luxury vehicles.
The investigation concerns a criminal network suspected of having carried out a so-called intra-community 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 (VAT).
Between 2019 and 2024, the suspects allegedly imported more than 1 700 vehicles from Germany to Italy without paying VAT by systematically issuing and using false invoices through shell companies registered under strawmen. By doing so, they are believed to have avoided VAT payments amounting to over €42.8 million, enabling them to sell vehicles at abnormally competitive prices.
The case began following a report by a consumer who had difficulties registering a German car purchased from an Italian dealership. Investigations by the Guardia di Finanza in Prato revealed a broader system of tax evasion, and international cooperation with the German authorities confirmed the cross-border scheme.
The measures, ordered by the Courts of Ferrara and Trani led to the seizure of assets including:
- 40 luxury cars worth around €3 million
- 53 bank accounts with balances of around €1.29 million
- Real estate worth approximately €1 million
- Capital shares of 8 companies worth €71 800
- 19 designer handbags
- 9 luxury watches
- Gold jewellery, a diamond ring, luxury glasses and €4200 in cash
All persons concerned are presumed innocent until proven guilty in the competent Italian 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.