(Luxembourg, 20 March 2025) – The European Public Prosecutor’s Office (EPPO) in Munich (Germany) has secured the first convictions in the EPPO investigation cluster Midas, a large-scale VAT fraud case spanning 17 countries and involving an estimated damage of €195 million.
On 18 March, the Landshut Regional Court (Landgericht Landshut) sentenced two individuals for organised VAT fraud, after they falsely claimed VAT refunds based on fraudulent invoices. The convicted individuals were involved in fraudulent trading of protective face masks, exploiting VAT rules to evade tax payments. Their actions resulted in an estimated VAT loss of around €5 million. The court sentenced one defendant to five years of imprisonment and the other to three years and six months, ordering the confiscation of €5 million.
EPPO investigation cluster Midas targets a transnational criminal organisation behind a VAT fraud scheme involving the sale of smartphones, small electronic devices, and protective face masks. Led by the EPPO offices in Munich and Cologne, the investigation uncovered a complex network suspected of orchestrating VAT carousel fraud through a system of shell companies and fictitious transactions.
The investigation leading to these convictions was carried out by the Tax Investigation Office in Nuremberg (SKS Nürnberg) and the Tax Investigation Office in Berlin (Steuerfahndung Berlin).
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU.