30 June 2026 , 19:24
630
0
French authorities searched premises in the Paris region and questioned six people as part of an investigation into a suspected large-scale VAT carousel fraud that allegedly cost the EU around 13 million euros ($13.9 million), the European Public Prosecutor’s Office said.
Carousel fraud is a cross-border tax scam where fraudsters import goods VAT-free, sell them domestically with VAT included, and then vanish with the collected tax before exporting the same goods to repeat the cycle.
The probe also concerns suspected money laundering and participation in a criminal organization involving 26 French companies, most of them based in Île-de-France. Investigators believe the transnational scheme relied on short-lived shell companies with no real business activity, which allegedly used at least 80 bank and payment accounts to move around 160 million euros ($171 million) in less than two years.
During six searches on June 25, authorities seized documents, digital evidence, a luxury car and about 60,000 euros ($64,000) in cash.
Head of Investigations