On 8 October 2026, the Financial Crimes Squad (SDOE) announced the conclusion of “Operation Hermes,” a nationwide investigation into a massive VAT carousel fraud involving mobile phone trading. The scheme, operating since 2023, exploited the intra-community VAT exemption by creating a chain of buffer companies that acquired phones VAT-free from other EU states and sold them domestically with VAT charged but never remitted. The fraud amounted to €410 million in lost VAT revenue. Authorities arrested 62 individuals, including the ringleaders, certified accountants, and customs brokers. Assets worth €85 million were frozen. The investigation leveraged myDATA analytics, cross-referencing VIES declarations with domestic VAT returns to identify missing trader patterns. AADE emphasized that the new digital cross-checking tools under Law 5144/2024 (VAT Code) enabled real-time detection of the carousel.
Key Takeaways
- Scale and Modus Operandi: The network used 47 shell companies across Greece, Cyprus, and Bulgaria. Mobile phones were the primary goods due to high value, low volume, and easy cross-border movement.
- Technology-Driven Detection: myDATA’s automated cross-matching of VIES data against VAT returns flagged discrepancies within days, a significant improvement over the previous 18-month audit cycle.
- Professional Accountability: Three certified accountants were arrested for issuing false VAT compliance certificates. The Institute of Certified Accountants (SOEL) faces pressure to tighten disciplinary rules for tax advisors facilitating aggressive planning.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement