FIOD arrests four in €8.5 million soft drink tax fraud investigation

The Fiscal Intelligence and Investigation Service (FIOD) has arrested four men in connection with a large-scale tax fraud scheme involving the trade of non-alcoholic beverages. The suspects, aged 33, 39, 54, and 68, hail from Enschede, Hengelo, and Leeuwarden. The estimated tax loss to the Dutch Tax Administration is approximately €8.5 million.

Investigators suspect the use of “ploffers”—companies that collect VAT from customers but fail to remit it to the authorities. The scheme allegedly involved purchasing goods from EU suppliers at a 0% VAT rate through intra-community deliveries, then reselling them to a Dutch wholesaler with a 9% VAT rate. While the suspect companies failed to pay the tax, the wholesaler reportedly claimed the amount as input tax.

In addition to VAT fraud, the FIOD is investigating potential fraud regarding consumption tax on soft drinks. Authorities conducted searches at residences and business premises in Emmeloord, Haaksbergen, and Hengelo, seizing administrative records and digital data. The investigation has also identified four other suspected companies that may be involved in similar activities.