EPPO announces 13 arrests in an investigation into an alleged €100 million VAT fraud involving luxury cars

Thirteen people have been arrested in Germany and Austria in the Javelin investigation, which concerns an alleged scheme active since at least 2016. Searches were carried out in five countries, and the authorities executed seizure orders worth 26 million euros. The tax losses estimated by the EPPO at 100 million euros do not constitute damage definitively established by a court.

Thirteen people have been arrested in Germany and Austria in a European Public Prosecutor’s Office (EPPO) investigation into alleged 100-million-euro VAT fraud in the trade of luxury cars. Operation Javelin, announced on November 5, 2026, included searches carried out the previous day in Austria, Croatia, the Czech Republic, Germany, and Poland. More than 50 suspects are under investigation.

In brief

1. The EPPO announced 13 arrests in Germany and Austria and searches in five countries in a case involving estimated tax losses of 100 million euros. More than 50 people are under investigation, and over 900 police officers and tax inspectors participated in the operation.

2. The network allegedly collected VAT on the resale of cars without remitting it to the tax authorities, while other companies in the chain sought refunds. Prosecutors suspect a scheme active since at least 2016.

3. Seizure orders worth 26 million euros were executed. The assets targeted include nine real estate properties in Germany and Croatia, dozens of automobiles, and crypto-assets.

4. The investigation also concerns five alleged coordinators and two tax advisers. The arrests and seizures do not establish guilt and do not represent final convictions or confiscations.

5. The Austrian branch concerns vehicle deliveries worth approximately 80 million euros and estimated tax losses of more than 10 million. The 12 searches in Tyrol and Vorarlberg are part of the European operation, not an additional case added to this total.

The investigations are being led by EPPO prosecutors in Frankfurt and Graz, and more than 900 police officers and tax inspectors participated in the searches. The suspicions concern a chain of companies that allegedly used transactions between member states to conceal non-payment of VAT and obtain fraudulent refunds. According to the EPPO, the five alleged coordinators and the two tax advisers allegedly organized the mechanism, while the proceeds obtained were subsequently laundered to conceal their origin.

The chain described by prosecutors began with automobile sales declared by companies in several countries, including Austria and the Czech Republic, to firms in Berlin. The latter allegedly acted as “missing traders,” meaning companies that collect the tax and then disappear or cease operations without remitting it to the state. In the scheme presented by the EPPO, the German companies purchased the vehicles at the net price, without VAT being invoiced by the supplier in the other country. When reselling them in Germany, however, they were required to collect the tax from buyers and pay it to the tax authorities. Investigators claim that they kept the money, leaving the tax liability unpaid.

The automobiles were then allegedly resold in Germany through intermediary companies, referred to as “buffers” in the EPPO communiqué. Their assigned role was to distance subsequent transactions from the company that had not paid the tax and make the chain appear to consist of legitimate commercial operations. The cars ultimately reached a buyer in another member state. The last company in Germany, before the vehicles left the country, could request a refund of the VAT paid to its supplier, even though the tax previously collected by the vanished company had not reached the treasury. This is the mechanism of the alleged carousel fraud described by prosecutors.

The exemption for intra-Community supplies does not mean that VAT is absent from the entire chain. The European Commission explains that the supply may be exempt under the law, while the corresponding acquisition in the destination state is, in principle, taxable. The investigation concerns the alleged fraudulent use of this mechanism.

In addition to searches and arrests, the authorities executed seizure orders worth 26 million euros. The EPPO lists two properties in Berlin, one of which houses a hostel, and seven in Croatia. Bank accounts were frozen, and dozens of automobiles were seized, including luxury vehicles, cash, crypto-assets, luxury watches, and a firearm with ammunition. The communiqué does not provide an individual valuation of each asset. The value of the orders must not be confused with the 100-million-euro estimate of tax losses or with an amount already returned to public budgets.

The legal distinction is between keeping assets at the disposal of the authorities and permanently depriving the owner of them. Under the European framework concerning the recognition of freezing and confiscation orders, the first measure seeks to prevent the alienation or disappearance of assets, with a view to possible subsequent confiscation. Confiscation entails a final measure ordered by a court. The Javelin announcement describes measures taken during the investigation.

The Austrian Ministry of Finance states that 84 tax administration employees participated in the operation, alongside police officers and other partner authorities. Twelve searches took place in Tyrol and Vorarlberg. The Austrian branch concerns vehicle deliveries, including new cars, worth approximately 80 million euros and estimated tax losses of more than 10 million. Three people were arrested in Austria, while two other Austrian citizens were arrested in Germany. These arrests form part of the European total of 13 people announced by the EPPO.

The EPPO Regulation allows it to investigate serious VAT fraud linked to the territory of at least two member states, involving total damage of at least 10 million euros. Any charges will be brought before the competent national courts.

Investigators are continuing to examine the documents, electronic data, and seized assets. The full assessment of the assets was still underway when the operation was announced, according to the Austrian authorities. All persons concerned benefit from the presumption of innocence, and guilt may be established only by the competent courts.

https://2eu.brussels/ro/news/eppo-anunta-13-arestari-intr-o-ancheta-privind-frauda-cu-tva-la-vanzarea-masinilor-de-lux