11 PEOPLE ARRESTED OVER VAT SIPHONING OFF SCAM

The operation was performed by the Bulgarian Specialized Prosecutor’s Office and SANS (State Agency for National Security). 3 organised criminal groups are under investigation. The scam used a number of companies trading with sugar, powder milk, fuels and tyres.

The relation between the companies is that one of them provided the other 2 companies with ‘ghost’ invoices.

For one year as a result of the fraud, the losses for the national budget amount to over 30 million BGN, resulting from fraudulently reclaimed VAT and non-payment of VAT. The scams involved ‘buffer’ companies and fictitious transactions, mostly for import of goods.

The investigation took place simultaneously in the cities of Sofia, Vidin, Plovdiv, Stara Zagora, and Velingrad. Invoices, stamps, electronic signatures, computers and double entry journals have been seized from 50 locations. Over 30 suspects have been detained. Some of them confirmed the fraudulent schemes and the roles of the participants involved in them. 11 suspects will remain under arrest. Among them are the organizers of the VAT frauds.