Six Arrested in €13 Million VAT Fraud Case Under European Public Prosecutor’s Office Supervision

Six individuals have been arrested in connection with VAT fraud amounting to over €13 million. The investigation is being conducted under the supervision of the European Public Prosecutor’s Office (EPPO).

More than 80 searches and investigative actions have been carried out as part of the probe into cross-border VAT fraud.

Investigators from the General Directorate for Combating Organised Crime (GDBOP) and agents from the State Agency for National Security (SANS) carried out searches in nine cities, including Sofia, Haskovo, Plovdiv, Ruse, Dobrich, Vratsa, Dimitrovgrad, Kozloduy, and Mizia.

During the operation, authorities seized documents and other evidence, as well as mobile phones, gold coins, investment gold, and over €255,000 in cash.

The European Public Prosecutor’s Office is focusing on a criminal group operating since 2019, running a “carousel” VAT fraud scheme — a sophisticated criminal operation exploiting EU rules on cross-border transactions between member states, which are exempt from VAT. The scheme aimed to gain control over companies with “missing traders”. Using more than 60 companies registered in Bulgaria, Greece, and Romania, the suspects declared fictitious commercial transactions to claim VAT refunds from national tax authorities, despite having no legal entitlement. The alleged suppliers, also controlled by the group, disappeared without making any payments.

One of the schemes involved simulated trading of animal feed, generating a total turnover of over €51 million (100 million leva). Another involved fake deliveries of goods in the construction sector.

The estimated financial damage resulting from the investigated activities is €13.2 million.

All individuals involved are considered innocent until proven guilty in the competent Bulgarian courts.

The European Public Prosecutor’s Office is the independent prosecution authority of the European Union, responsible for investigating, prosecuting, and bringing charges for crimes affecting the EU’s financial interests.