European prosecutors and Portuguese police carried out roughly 250 searches across Portugal on Wednesday as part of an investigation into an alleged VAT fraud scheme, according to RTP. The operation, which authorities have dubbed the "VAT carousel," involves the European Public Prosecutor's Office (EPPO).
Around 700 Polícia Judiciária (PJ) inspectors took part in the searches, which are being conducted nationwide, SIC Notícias reports. Notícias ao Minuto reports that dozens of arrests are possible, though no figures have been confirmed.
The alleged scheme is valued at approximately 130 million euros, according to JM Madeira. A VAT carousel typically involves goods or services traded in a circle of companies across borders, with fraudulent operators collecting VAT and then disappearing before passing it on to tax authorities — though the specific mechanics of this case have not been detailed in the reporting so far.
The EPPO, which opened in 2021, is responsible for investigating and prosecuting crimes against the EU budget, including cross-border VAT fraud involving two or more member states. Portugal is one of the participating countries.
The scale of Wednesday's operation — both in the number of searches and the number of officers deployed — makes it one of the larger coordinated actions in Portugal in recent years, according to Notícias ao Minuto. Jornal de Negócios describes it as a mega-operation against fraud.
What to watch next: whether arrests are confirmed, and whether the EPPO or Portuguese authorities release further details on the suspects and the companies involved.
