Operation Hermes uncovers massive European VAT fraud scheme

Operation Hermes VAT fraud mobile phone trade tax evasion transnational crime

Operation Hermes, a major transnational investigation led by the European Public Prosecutor's Office (EPPO), has uncovered a massive VAT carousel fraud scheme involving the trade of mobile phones and electronic devices. The operation has resulted in the detention of dozens of suspects across Europe, including 39 individuals in Portugal and several in Italy and Spain.

In Portugal, authorities conducted approximately 250 searches across various regions, including Porto, Lisbon, and Aveiro. The scheme allegedly caused losses to the Portuguese state exceeding 150 million euros. The fraudulent mechanism involved using shell companies and ‘missing traders’ to circulate goods through the EU, exploiting VAT rules on intra-community transactions to claim illegal refunds.

In Italy, the investigation has implicated 93 companies across several provinces, with false invoices totaling over 450 million euros recorded between 2022 and 2025. Authorities in Italy have also implemented precautionary measures against several individuals and seized assets worth approximately 11 million euros. On a broader European scale, the EPPO estimates the total loss from this criminal activity reaches at least 410 million euros across multiple member states.

Entities

European Public Prosecutor's Office · Guardia di Finanza · Italy · Polícia Judiciária · Portugal · Procuradoria Europeia · Tax Authority

Claims

What the coverage asserts, and how many sources carry each claim.

[● 6 SOURCES] The scheme involved the fraudulent trade of mobile phones and electronic devices. www.correiodamanhacanada.com · miraonline.pt · maisribatejo.pt · www.abola.pt · eco.sapo.pt · +1 more
[● 6 SOURCES] The European Public Prosecutor's Office (EPPO) is leading the investigation. www.correiodamanhacanada.com · miraonline.pt · maisribatejo.pt · www.abola.pt · eco.sapo.pt · +1 more
[● 4 SOURCES] Approximately 250 searches were conducted in Portugal. miraonline.pt · maisribatejo.pt · www.abola.pt · sapo.pt
[● 6 SOURCES] 39 suspects were detained in Portugal. www.correiodamanhacanada.com · miraonline.pt · maisribatejo.pt · www.abola.pt · eco.sapo.pt · +1 more
[● 6 SOURCES] The VAT carousel scheme caused losses exceeding 150 million euros to the Portuguese state. www.correiodamanhacanada.com · miraonline.pt · maisribatejo.pt · www.abola.pt · eco.sapo.pt · +1 more
[● 2 SOURCES] The investigation includes activities in Germany, France, Spain, Italy, Malta, Netherlands, Lithuania, and Austria. miraonline.pt · eco.sapo.pt
[○ 1 SOURCE] The total European loss from the criminal activity is estimated at at least 410 million euros. eco.sapo.pt
[● 6 SOURCES] The Polícia Judiciária conducted Operation Hermes to combat tax fraud. www.correiodamanhacanada.com · miraonline.pt · maisribatejo.pt · www.abola.pt · eco.sapo.pt · +1 more