The European Public Prosecutor’s Office (EPPO) reported that cross-border crime groups were responsible for €2.2bn in organised VAT fraud involving the sale of electronic goods in a typical carousel fraud scam across numerous countries in Europe.

The investigation started in April 2021 after authorities in Portugal probed a company selling electronic goods on suspicion of VAT fraud.

Portuguese authorities reported the case to EPPO after its launch in June 2021, despite the initial probe finding the company’s invoicing and tax declarations to be in order.

But additional digging found connections between the suspected company in Portugal and around 9,000 other legal entities, including more than 600 persons located in different countries.