Investigation Huracán: Searches, seizures and arrests in Germany, Poland and the Netherlands in large-scale VAT fraud

(Luxembourg, 10 July 2026) – The European Public Prosecutor’s Office (EPPO) in Cologne (Germany) has uncovered additional information within the large-scale VAT fraud investigation Huracán, leading to two arrests in Germany and  the Netherlands, and searches and seizures in Germany, Poland and the Netherlands yesterday. 

The suspects are believed to have bought cars from the main suspects, who were convicted in October 2024, and sold them to car dealers located within and outside Germany, mainly in the Netherlands and Portugal, as so-called ‘margin cars’. This provided the car dealers with the possibility of paying VAT only on the margin they made (the difference between the price paid for the vehicle and the price for which it is sold), and not on the net value of the car. It is understood that this fraudulent behaviour resulted in VAT evasion in the country of the final seller and led to VAT damage of over €3.2 million.

As previously reported, this investigation originated in January 2021 with a report from a tax authority in Italy to the German Federal Central Tax Office, about missing information on the purchase and potential resale of cars imported from Germany to Italy. Since then, nine individuals have been convicted and sentenced to two to seven years of imprisonment.

In total, over 70 individuals are suspected of participating in the organised group or supporting the main suspects. Between 2017 and June 2023, the fraudulent scheme is estimated to have caused €300 million in VAT losses, of which €15 million have been recovered so far.

Yesterday’s searches were carried out in Germany, the Netherlands and Poland. Extensive digital evidence as well as weapons, luxury cars and other assets, including watches, cash and jewellery, and real estate worth over €2.5 million were seized. 

All persons are presumed 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.