Skip to main content

An international criminal network is dismantled due to a 17-million-euro VAT scam in the high-end car market

Operation of the Tax Agency, National Police and Civil Guard

  • There are 49 people arrested who allegedly formed a criminal structure in Spain for the sale and purchase of high-end vehicles between companies in Germany and Portugal through complex systems to evade payment of VAT.
  • The operation was carried out under the direction of the European Public Prosecutor's Office and 14 searches were carried out in several provinces – Madrid, Badajoz, León, Navarra, Vizcaya, Granada, Cáceres, Almería, Teruel, Toledo and Cantabria – in which four high-end cars were seized, along with documentation related to the investigation, 84 vehicles were blocked, 55 bank accounts with a balance of more than 500,000 euros and more than 240,000 euros were seized.

September 27, 2023 .- The Tax Agency, in a joint operation with the Civil Guard and the National Police, led by the European Public Prosecutor's Office, has dismantled a transnational criminal network for fraud VAT of 17 million euros in the high-end car market. There are 49 people arrested who allegedly set up a structure in Spain for the sale and purchase of high-end vehicles between companies in Germany and Portugal through complex systems to evade payment of VAT.

During the operation, 14 searches were carried out in several provinces, in which four high-end cars and documentation related to the investigation were seized, 84 vehicles were blocked, 55 bank accounts with a balance of more than 500,000 euros were blocked, and more than 240,000 euros were seized.

The investigation began in early 2021 when the alleged commission of three crimes related to VAT fraud between 2019 and 2021 was detected. The investigations carried out revealed that the suspects had formed a criminal network in Spain for the purchase and sale of second-hand luxury vehicles between companies in Germany and Portugal. Through two complex systems, they evaded the payment of VAT by fraudulently applying the Special Regime for Used Goods, by using a Portuguese company to create opacity in the commercial chain. Another method they used was to set up fictitious companies to commit intra-community VAT fraud, taking advantage of European Union rules on cross-border transactions.

Under the direction of the European Public Prosecutor's Office, 14 searches have been carried out in different Spanish provinces – Madrid, Badajoz, León, Vizcaya, Navarra, Granada, Cáceres, Almería, Teruel, Toledo and Cantabria – in which four high-end vehicles and documentation related to the investigation have been seized. Those arrested during the operation are considered allegedly responsible for three crimes related to VAT fraud between 2019 and 2021, who could have defrauded more than 17 million euros. In addition, 84 high-end cars and 55 bank accounts with a balance of more than 500,000 euros have been blocked and more than 240,000 euros have been seized.

The destination of these vehicles once they arrived in Spain was, on the one hand, their sale to conniving dealers throughout the national territory and, on the other hand, and most importantly, to provide other criminal organisations linked to drug trafficking with luxury sports cars, either to have them available through a 'renting' type system in which the vehicles are registered in the name of a company with a front man at the helm, or to be used for the transport of narcotic substances.

 The study of the bank accounts of more than 200 companies has also enabled the movement of more than 660 million euros to be traced during the period analysed. The origin of the capital was Spain, channelled to the accounts of the 24 companies of the organisation in Portugal and, from there, to the German accounts of the companies supplying the vehicles.

Operation filming (to download the video, enter the following web address):

https://we.tl/t-HsihL14hNJ