Six people have been arrested for VAT fraud worth over 13 million euros. The investigation is under the supervision of the European Public Prosecutor's Office, reports BNT. More than 80 searches and investigations into cross-border VAT fraud have been carried out.
The European Public Prosecutor's Office reports that investigators from the Directorate for the Prevention of Corruption and the Bulgarian National Security Service (DANS) have carried out searches in nine cities, including Sofia, Haskovo, Plovdiv, Ruse, Dobrich, Vratsa, Dimitrovgrad, Kozloduy and Mizia.
Documents and evidence were seized, as well as mobile phones, gold coins and investment gold, as well as over 255,000 euros in cash.
The European Public Prosecutor's Office is focusing on a criminal group operating since 2019 and running a "chain" type VAT fraud scheme - a complex criminal scheme that takes advantage of EU rules on cross-border transactions between member states, as they are exempt from value added tax (VAT). The scheme under investigation aimed to identify and exercise control over companies with a “missing trader“. More than 60 companies established in Bulgaria, Greece and Romania declared fictitious commercial transactions in order to claim VAT refunds from the national tax authorities, to which the suspects were not entitled - as the alleged suppliers, also controlled by the group, disappeared without making any payments.
One of the schemes involved a simulated trade in animal feed, generating a total turnover of over €51 million (BGN 100 million). Another scheme involves false deliveries of goods in the construction sector.
The damage caused as a result of the activities under investigation is estimated at EUR 13.2 million.
All persons involved are presumed innocent until proven guilty in the competent Bulgarian courts.
The European Public Prosecutor's Office is the independent prosecutor's office of the European Union. It is responsible for investigating, prosecuting and bringing charges for crimes against the EU's financial interests.