EPPO Indicts 4, Proposes Plea Bargains in CZK 4.8 Billion VAT Fraud

(Luxembourg, 7 October 2026) – Today, the European Public Prosecutor’s Office (EPPO) in Ostrava (Czechia) has indicted four individuals and proposed to Prague’s Municipal Court plea bargains against four more suspects for their involvement in a large-scale VAT fraud scheme related to the trade of electronic goods, causing a damage of over CZK 4.8 billion (approximately €195.7 million). As previously reported , the investigation – code-named 'Záblesk' ('Flash', in English) – focused on a group of individuals suspected of involvement in a long-term criminal scheme involving the import of electronic equipment from third countries – including Hong Kong, the United Arab Emirates and the United States – into the European Union, through companies based in Czechia. These companies subsequently declared intra-community supplies of goods to entities registered in Hungary, Poland and Slovakia. However, these foreign entities had no real economic activity, did not take the delivery of the goods, and made no payments. The goods were in reality transported to warehouses located near the Ukrainian border. They were collected there by other individuals who subsequently disposed of the goods, without paying the VAT due. The damage of the fraudulent scheme exceeds CZK 4.8 billion (approximately €195.7 million), making it one of the biggest VAT fraud cases to date in Czechia. The investigation was supported by the Czech Police‘s National Organised Crime Agency (NCOZ - Národní centrála proti organizovanému zločinu). The defendants are indicted for serious tax fraud. If found guilty, the defendants could face prison sentences of up to 10 years, as well as the forfeiture of their property. Under the plea bargain, three of the defendants would receive sentences of five to six years and forfeit their property. One defendant could receive a suspended sentence. In addition, all of the defendants face a 10-year prohibition on engaging in business activities. All persons concerned are presumed innocent until proven guilty in the competent Czech 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.