Another suspect arrested in €4 million VAT fraud probe across Europe

22 September 2026 , 19:28

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Another suspect arrested in €4 million VAT fraud probe across Europe

At the request of the European Public Prosecutor’s Office (EPPO) in Rotterdam (the Netherlands), another suspect was arrested in connection with an investigation into criminal networks operating cross-border VAT fraud schemes linked to the sales of electronic devices, code-named ‘Escape Room’. Assets worth €3.5 million were also seized. 

This arrest follows the detention of eight suspects in Belgium, the Netherlands and Poland in October 2025.

The suspect is believed to have been a member of the criminal organisations under investigation. He allegedly acted as a broker in the VAT carousel scheme, serving as an intermediary between companies in the chain and claiming VAT refunds to which he was not entitled from the tax administration. 

Based on the evidence, after the investigative measures in October 2025, he initially continued his activities through a buffer company (an intermediary company used to facilitate the fraudulent VAT scheme), before transferring his activities to a newly established company. The individual is suspected of having used criminal proceeds to establish this new company, allowing the scheme to continue.

He was taken in for questioning on 16 September 2026 and will remain in pre-trail detention.

The suspect’s conduct alone may have caused damage of around €4 million to the Dutch Tax and Customs Administration and the EU through unpaid VAT and the improper claiming of VAT refunds.

At the request of the EPPO, the Dutch Fiscal Information and Investigation Service (FIOD) carried out searches at the suspect’s home and three business premises in Capelle aan den IJssel, near Rotterdam. Physical and digital evidence was seized. Real estate, a car, stock, receivables and bank accounts were also seized, worth an estimated value of 3.5 million euro. 

Investigation ‘Escape Room’ concerns a cross-border VAT fraud network operating across Austria, Belgium, Germany, Latvia, the Netherlands and Poland, linked to the trade in electronic devices. Based on the evidence, the network used hundreds of shell companies and fictitious invoices to conceal transactions and evade VAT, while also fraudulently claiming VAT reimbursements to which it was not entitled. The estimated damage caused by the criminal ring includes €22 million in unpaid VAT in the Netherlands and €47 million in Belgium. 

All persons concerned are presumed to be innocent until proven guilty in the competent courts of law.

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.

Emma Davis

Deputy Editor