11 suspects arrested in Italy in a €100 million VAT fraud case involving companies from Romania and other EU countries

Eight suspects have been placed in pre-trial detention and three under house arrest in an investigation by the European Public Prosecutor’s Office into alleged VAT fraud in the trade of industrial plastic products. The network under investigation used companies in six EU Member States, including Romania, and investigators estimate the unpaid VAT at approximately EUR 100 million.

Eleven suspects were arrested in Italy in an investigation into alleged VAT fraud of approximately EUR 100 million in the trade of industrial plastic products, the European Public Prosecutor’s Office announced on Wednesday, 7 October. Eight people were placed in pre-trial detention, three under house arrest, and the authorities also enforced a seizure order covering assets of up to EUR 25 million.

In briefEight suspects have been placed in pre-trial detention and three under house arrest.

The investigation concerns invoices for fictitious transactions worth approximately EUR 500 million and alleged VAT fraud of around EUR 100 million between 2018 and 2023.

The network under investigation includes companies from Italy, Austria, Bulgaria, the Czech Republic, Hungary and Romania.

More than 50 people are under investigation, while a seizure order covers assets of up to EUR 25 million.

Ten people were previously convicted in the same investigation, while two others were convicted in September 2026. These convictions are separate from the measures now imposed against the 11 suspects.

The measures were carried out on Tuesday by 120 members of the Guardia di Finanza from Turin and Ancona, with support from units from several regions of Italy. Searches were conducted at the suspects’ homes and business premises, including with canine units specialised in detecting cash.

According to the European Public Prosecutor’s Office, the investigation concerns a network of shell companies that acted as intermediaries in the sale of industrial plastic products. The companies were located in Italy, Austria, Bulgaria, the Czech Republic, Hungary and Romania and, in many cases, did not conduct any genuine economic activity. Investigators allege that the companies systematically failed to declare and pay VAT, while the introduction of several entities into the commercial chain made it more difficult to trace the actual flows of goods and money.

The presence of Romanian companies in the network under investigation does not mean that the arrested individuals are Romanian or that Tuesday’s measures were carried out in Romania. The EPPO statement specifies that the current operation was conducted by the Italian authorities.

Investigators estimate that, between 2018 and 2023, invoices for non-existent transactions totalling approximately EUR 500 million were issued and used. The VAT allegedly not paid as a result of the scheme is estimated at approximately EUR 100 million.

The scheme allegedly also enabled the products to be sold at prices significantly lower than market prices. The EPPO states that this mechanism harmed competition and companies that complied with their tax obligations, while the actual recipients of the products were Italian industrial companies in Piedmont, Lombardy and Tuscany.

The order now being enforced allows assets worth up to EUR 25 million to be seized. This amount represents the ceiling of the measure ordered and does not mean that the authorities have already recovered assets worth EUR 25 million.

The case is at a more advanced stage for other people investigated in the same inquiry. Ten defendants had previously been convicted by the Nola Court of VAT fraud, issuing or using false invoices and other tax offences. The sentences handed down in July ranged from three years and four months to four years and six months in prison and could be appealed. Two other people were convicted on 21 September 2026.

These convictions must not be confused with the legal situation of the 11 people targeted by the measures announced on 7 October. In their case, the investigation is ongoing, and all individuals are presumed innocent until a final judgment is issued by the competent courts.

In total, more than 50 people are under investigation for alleged offences including participation in a criminal organisation, VAT fraud, issuing and using false invoices, failure to file tax returns, tax evasion and illegal tax offsets. The EPPO says that the investigation is continuing to identify other links in the network and assets that could correspond to the proceeds of the alleged crimes.

https://2eu.brussels/ro/news/11-suspecti-arestati-in-italia-intr-un-dosar-de-frauda-tva-de-circa-100-milioane-eur-cu-firme-din-romania-si-alte-state-ue