European Public Prosecutor's Office Indicts Six in Large-Scale VAT Fraud Case

(Luxembourg, 3 August 2026) – The European Public Prosecutor’s Office (EPPO) in Ostrava (Czechia) has filed an indictment before the Municipal Court in Prague against five individuals and one company suspected of defrauding over €17.4 million (CZK 418 million) in VAT on goods imported from China. The case involves imports carried out through companies registered for VAT purposes in Czechia, despite not being established there. After customs clearance, the defendants declared that the goods had been supplied to companies in other EU Member States. It is believed that these recipients were in fact fictitious companies and that the goods were instead delivered to logistics centres operated by e-commerce platforms and subsequently sold to consumers across the EU. As a result, VAT due on the importation of the goods from China was allegedly neither declared nor paid. According to the investigation, four of the defendants, together with the company, allegedly committed the offences as members of an organised criminal group. The fifth defendant is accused of committing the offences independently and is not charged with participation in the organised criminal group. If convicted, the four defendants and the company face prison sentences ranging from nine years to thirteen years and four months. The fifth defendant faces a prison sentence ranging from two to eight years. The investigation was conducted in close cooperation with the National Centre against Organised Crime of the Czech Police (Národní centrála proti organizovanému zločinu – NCOZ). 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.