(Luxembourg, 5 March 2025) – The European Public Prosecutor’s Office (EPPO) in Cologne (Germany) has filed another indictment against one defendant with the Regional Court in Düsseldorf. This is the third indictment in a large-scale VAT fraud investigation, code-named ’Huracán’, concerning the international trade of more than 10 000 cars.
It is alleged that the defendant bought cars from and together with one of the main suspects, who was indicted in March 2024 and received a prison sentence of five years and two months in October 2024. It is understood that the defendant then sold the cars to car dealers outside of Germany, mainly based in Portugal.
According to the investigation, the cars were fraudulently sold as so-called ‘margin cars’, providing the car dealers in Portugal with the possibility of paying VAT only on the margin they made (the difference between the price paid for the vehicle and the price for which it is sold), and not on the net value of the car. This fraudulent behaviour allegedly resulted in VAT evasion in the country of the final seller, and led, in this particular part of the scheme, to a VAT damage of over €6 million.
During the searches in June 2023, € 56.800 in cash and two cars were seized from the defendant.
If convicted, he risks a sentence of several years of imprisonment.
All persons are presumed innocent until proven guilty in the competent German 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.