EU prosecutors seize cash, arrest six in Bulgaria in cross-border VAT fraud probe

Sofia [Bulgaria], December 6: More than 80 searches and investigative actions were carried out in Bulgaria, and six Bulgarian citizens were arrested in connection with a cross-border VAT fraud investigation, the European Public Prosecutor's Office (EPPO) said on Friday.
According to the EPPO, the searches were conducted since Thursday in nine cities, including Sofia. Investigators seized documents, electronic evidence, mobile phones, gold coins and investment medals, as well as more than 255,000 euros in cash.
The fraud is estimated to have caused losses of over 13 million euros (approximately 15.1 million U.S. dollars).
"On the radar of the EPPO is a criminal group active since 2019, operating a VAT carousel fraud scheme, a complex criminal mechanism that exploits EU rules on cross-border transactions, which are exempt from value-added tax (VAT)," the statement said.
The scheme under investigation allegedly focused on creating and controlling "missing trader" companies. "Through more than 60 companies established in Bulgaria, Greece, and Romania, fictitious commercial transactions were declared in order to claim VAT refunds from national tax authorities, to which the suspects were not entitled, since the supposed suppliers, also controlled by the group, had disappeared without making any payments," the EPPO added.
One part of the fraud involved simulated trade in animal feed, generating a reported turnover of more than 51 million euros. Another involved fake deliveries of goods within the construction sector.
The EPPO is the EU's independent public prosecution body responsible for investigating, prosecuting, and bringing to judgment crimes that affect the European Union's financial interests.
Source: Xinhua