Italy: EPPO seizes over €23.5 million in investigation into VAT fraud in the fuel sector

 

01/07/2026   European Public Prosecutor's Office News

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Italy: EPPO seizes over €23.5 million in investigation into VAT fraud in the fuel sector (Luxembourg, 1 July 2026) – On behalf of the European Public Prosecutor’s Office (EPPO) in Milan (Italy), the Italian Financial Police (Guardia di Finanza) and the Italian Customs and Monopolies Agency (Agenzia delle Dogane e dei Monopoli) seized assets worth over €23.5 million, in an investigation into a VAT fraud scheme involving imported fuel to the Italian market. At the request of the EPPO, the Judge for Preliminary Investigations at the Court of Milan issued an order to seize assets worth up to €60 million to secure compensation for the alleged damage. On Tuesday, properties in Lombardy, Liguria and Valle d’Aosta worth approximately €13.5 million were seized, as well as bank accounts containing around €10 million, and several vehicles. Efforts to identify and seize additional assets are ongoing. The investigation uncovered a complex fraudulent scheme operated by an authorised excise warehouse for petroleum products located in the province of Milan, which placed more than 188 million litres of diesel and petrol on the market without paying the applicable taxes. In particular, it is understood that the warehouse improperly made use of the scheme under which VAT is paid when goods are removed from a VAT warehouse, based on an estimate of the quantities intended for subsequent sale. This enabled the suspects to sell petroleum products at significantly below-market prices, both through their network of distributors (unbranded fuel stations) and through sales to other operators, thereby significantly distorting competition. Based on the evidence, the scheme resulted in fraudulent VAT returns for the years 2023, 2024 and 2025 in the oil sector, amounting to an estimated damage of €60 million.   more

Italy: EPPO freezes textile products worth €11 million in ongoing investigation into smuggling of fabric from China (Luxembourg, 30 June 2026) – At the request of the European Public Prosecutor’s Office (EPPO) in Bologna (Italy), the Judge for Preliminary Investigations in Prato has issued a freezing order covering over 7.8 million metres of fabric and more than 237 000 garments, as part of an ongoing investigation into a VAT and customs fraud involving the smuggling of textile products from China. As previously reported, the goods, with an estimated market value of approximately €11 million, had been seized as evidence during searches carried out in warehouses in Prato. Following further investigative activities, the EPPO established the exact quantity and value of the seized products, as well as the amount of customs duties and import VAT allegedly evaded. On this basis, the court ordered their preventive freezing, with a view to their possible confiscation and sale by public auction. The investigation concerns a suspected smuggling scheme involving textile products imported from China and stored in warehouses in the Prato textile district. According to the evidence, the goods were transported using altered transport documents and subsequently regularised through false invoices referring to fictitious commercial transactions involving companies in several EU Member States, including Germany, Hungary and Poland. The investigation identified a network of companies allegedly used to conceal the true origin and destination of the goods and to evade customs duties and import VAT. Based on the evidence gathered so far, the estimated damage exceeds €4 million.   more   Bulgaria: EPPO detains eight suspects over €900 000 subsidy fraud involving employment benefits (Luxembourg, 30 June 2026) – At the request of the European Public Prosecutor’s Office (EPPO) in Sofia (Bulgaria), eight suspects were detained today, including a public official, over a €900 000 subsidy fraud involving employment benefits. The detentions are related to an investigation into the activities of an organised criminal group suspected of fraudulently obtaining EU funds under employment support programmes. Officers of the General Directorate for Combating Organised Crime (ГДБОП) also carried out eight searches and seized documents and evidence. According to the evidence gathered so far, the members of the group used commercial companies to apply for projects financed under the Human Resources Development Programme 2021-2027. They are believed to have submitted false information and created fictitious employment relationships, in order to meet programme eligibility requirements. It is suspected that the organised crime group benefited from the complicity of a public official. The total amount of funds allegedly fraudulently claimed and received is approximately €990 000. The investigation is ongoing to clarify the facts and establish the full scope of the alleged criminal activity.   more   European Public Prosecutor's Office - 11 Avenue John F. Kennedy, Luxembourg, 1855 Luxembourg