The European Public Prosecutor’s Office dismantled a criminal network focused on VAT fraud involving electronic devices. The operation, linked to an attribution of 2.2 billion euros in fraud, involved coordination across 14 countries and included a registered company in Barcelona, two addresses, and a law office in Marbella, Málaga.
In a statement from the General Directorate of Civil Guards, the ADMIRAL operation, led by the European Public Prosecutor’s Office, is described as the largest VAT fraud case ever examined in the EU. It was uncovered through a sprawling web that connected roughly 9,000 legal entities and more than 600 individuals across multiple nations. The scope highlights the intricate, cross-border nature of modern financial crime and the challenges of detection when networks span numerous jurisdictions.
The European Public Prosecutor’s Office coordinated the operation through wide-ranging international cooperation. Belgium, Cyprus, Slovakia, Spain, France, Greece, Hungary, Italy, Lithuania, Luxembourg, the Netherlands, Portugal, and Romania were among the countries where extensive searches of companies and private residences were conducted.
In Spain, the actions were carried out by specialized units of the Civil Guard, focusing on Malaga and Barcelona. A total of four checks and registrations targeted a Barcelona-based company and two addresses plus a Marbella law firm, where high-end vehicles and a variety of commercial documents were found, altered, or seized as part of the investigation.
The inquiry began after the Portuguese Tax Authorities in Coimbra raised suspicions in April 2021 about VAT fraud connected to a company selling mobile phones, tablets, headphones, and other electronic devices. As the European Prosecutor’s Office came into operation in June 2021, a new legal framework shaped the process, with Portugal taking a lead role in advancing the case.
Through sustained international cooperation, European prosecutors, together with national authorities and Europol, gradually linked the Portugal-focused entity to the broader network. This network encompassed about 9,000 other legal entities and over 600 individuals across several countries, revealing the full extent of the scheme and its connections to relevant national authorities and financial investigators.
The investigation progressed for eighteen months from the initial report, culminating in what EPPO described as the largest VAT carousel fraud ever pursued within the EU. The case involved activity under the jurisdiction of multiple states, with 22 member states recognizing the EPPO framework, alongside third countries such as Hungary, Ireland, Poland, Sweden, Albania, China, Mauritius, Serbia, Singapore, Switzerland, Turkey, the United Arab Emirates, and the United States.
The criminal network operated as a large group of entities that supplied electronic devices and claimed VAT refunds from national tax systems. After devices were sold to individuals through e-commerce platforms, profits were moved abroad using a network of intermediary companies and traders. The flow of funds and goods was then dispersed across jurisdictions, complicating detection and enforcement across borders.
The operation highlighted the involvement of several professional groups with highly specialized, organized crime capabilities. Each group played a defined role, enabling the network to maintain operations and evade scrutiny for years. Such a structure underscores the systemic risks posed by cross-border VAT fraud and the importance of coordinated oversight and enforcement across multiple jurisdictions.
According to Europol assessments, VAT carousel fraud, or intra-community fraud (MTIC), represents a significant financial burden, delivering substantial gains to organized crime and causing considerable losses to member states. Estimated costs run into tens of billions of euros annually, underscoring why cross-border cooperation and advanced analytical tools are essential for proactive policing and effective prosecutions.
The ADMIRAL operation illustrates how cross-border crime challenges are best addressed through a blend of national capabilities, European-level authorities, and international partners. By leveraging shared databases, investigative networks, and the analytical capacity of central authorities, EPPO and Europol were able to map complex ownership structures, verify transactions, and trace profit flows that spanned continents. The result is a clearer understanding of how such schemes are designed, executed, and eventually dismantled across Europe and beyond, with ongoing coordination to pursue remaining leads and assets. [Europol Attribution] [EPPO Attribution]