Cyprus: European investigation into VAT fraud involving companies on the island
Cypriot authorities collaborated in a European investigation into VAT fraud, although no investigations were conducted on the island. A network of companies in Cyprus, Bulgaria, Czechia and Greece allegedly caused damage exceeding €46 million.
Cyprus: European investigation into VAT fraud involving companies on the island
Cypriot authorities participated in a European investigation into a VAT fraud case limited to the exchange of information, sources on the island reported on Tuesday.
According to the Cyprus News Agency (KYPE), Cyprus's contribution was restricted to the transmission of data within the framework of the mechanisms of the European Public Prosecutor (EPPO). Cypriot police conducted no investigations on the territory of the country nor applied investigative measures.
The investigation began almost a year ago and concerns a network of companies in Bulgaria, Cyprus, Czechia and Greece. The suspects are alleged to have exploited VAT exemptions in cross-border transactions between EU member states. From 2021 to 2025, the group is alleged to have used a chain of shell companies to distribute electronic goods in Greece and other EU countries, avoiding VAT payment or securing unlawful tax refunds.
The damages to the EU and Greek budgets are calculated at least €46.9 million from unpaid VAT amounts. Additionally, evidence was found of a further €24.2 million that was either not paid or incorrectly declared.
Greek authorities conducted investigations and seizures in Attica and Kastoria. Cryptocurrencies worth approximately €900,000 and other digital assets worth €4.5 million were seized, the largest seizure of digital assets at national level in Greece. Additionally, orders were issued to freeze 88 properties worth over €4.5 million and multiple bank accounts.
Source: Cyprus Mail