- The European Public Prosecutor’s Office (EPPO) conducted 27 searches in France and the Netherlands on 14 and 19 June 2023, investigating VAT fraud in car sales, with an estimated damage of €19 million.
- The investigation uncovered a suspected criminal scheme where car companies fraudulently sell new vehicles as second-hand to pay reduced VAT, causing unfair competition.
- The investigation revealed fake transactions where cars were bought from legitimate dealers in Germany by Dutch companies, sold to shell companies in France, and then bought back again, ultimately selling to private persons and companies in several EU countries as second-hand vehicles.
- The suspected fraud allowed cars to be sold at a lower marker price. Four suspects were arrested, and dozens of cars seized, along with more than €1 million in cash.
- It is estimated that €13 million was lost in unpaid VAT in France, and the estimated damage in the Netherlands is €6 million.
- Two people were indicted in France for fraud and money laundering committed by an organised crime group. Both of them have been remanded in pre-trial detention.
Source EPPO
