VAT carousel fraud: police seize assets worth 26 million euros across five countries
International Operation Javelin uncovered VAT fraud worth 100 million euros. Thirteen people have been detained, with luxury cars, real estate and cryptocurrencies seized.
Operation Javelin: 900 officers deployed, 13 detained and assets worth tens of millions
According to noviny.sk, the European Public Prosecutor's Office (EPPO) coordinated a large-scale international operation called Javelin targeting VAT fraud. The operation involved approximately 900 members of law enforcement and tax authorities from Germany, Austria, Czechia, Poland and Croatia.
Investigators detained a total of 13 suspects in Germany and Austria. The investigation concerns 50 people overall. The authorities seized assets worth 26 million euros, including seven properties in Croatia and two further properties in Berlin — among them a hostel building. The seized items include dozens of vehicles including luxury cars, cash, cryptocurrencies and a firearm with ammunition.
The operation also included the Czech National Centre Against Organised Crime (NCOZ). "NCOZ police officers conducted house searches, searches of other premises and land, and witness interviews on the territory of the Czech Republic," said NCOZ spokesman Jaroslav Ibehej. The aim of Czech investigators was primarily to secure evidence, accounting documents and further information about the operation of the suspected network.
According to investigators, the group used so-called VAT carousel fraud — a scheme in which companies exploit cross-border trade rules within the European Union. Companies operating in multiple countries, including Czechia and Austria, reported the sale of luxury vehicles to Berlin-based companies without charging VAT, which corresponds to the standard regime for cross-border transactions. When the Berlin companies subsequently sold the vehicles to other customers in Germany, they collected tax from the buyers — but instead of remitting VAT to the state, the companies ceased operations or wound down activities shortly afterwards without paying the VAT.
Investigators believe the entire system was controlled by five main organisers together with two tax consultants. According to the European Public Prosecutor's Office, the suspects may have deprived public budgets of up to 100 million euros in this way.
Source: Google News SK — Crime (sk)