European authorities dismantle 70-million-euro VAT fraud network

European authorities have dismantled an international criminal network responsible for a massive VAT carousel fraud involving computer products. The operation, coordinated by the European Public Prosecutor's Office alongside the Spanish National Police and the Tax Agency, resulted in approximately 100 arrests across Spain, Italy, Portugal, and Malta.

In Spain, 21 individuals were detained during raids in Valencia and Málaga. Investigators identified a Valencia-based company with Italian ownership as the epicenter of the scheme. The organization allegedly defrauded the Spanish Treasury of over 70 million euros since 2018 by using a complex chain of shell companies, conduits, and brokers to claim VAT deductions on goods that were never properly taxed.

Law enforcement seized significant assets, including 110,000 euros in cash, gold coins valued at over 300,000 euros, luxury jewelry, and watches. Additionally, judicial authorities froze more than seven million euros in real estate and other assets linked to the fraudulent activities.