Cypriot authorities have had no involvement in an ongoing European VAT fraud investigation other than the sharing of information, it was reported on Tuesday.

Citing sources in Cyprus familiar with the issue, the Cyprus News Agency said that so far authorities on the island have cooperated in the criminal probe “in the context of the mechanisms of the European Public Prosecutor’s office which operate in EU member-states and which cooperate with the central offices of Eppo in Luxembourg”.

The assistance of Cypriot authorities has been limited to information sharing, the same sources said. Cyprus police did not conduct investigations on the island, nor were any investigative/interrogation measures taken.

The sources did not rule out European authorities seeking more assistance from Cyprus authorities in the future.

According to a statement released by Eppo on Tuesday, the Eppo office in Athens last week conducted searches and seizures at several locations in Attica and Kastoria as part of an ongoing investigation into suspected VAT carousel fraud involving the trade of small electronic goods and the laundering of criminal proceeds.

The investigation, which began almost a year ago, has revealed a network of companies established in Bulgaria, Cyprus, the Czech Republic and Greece, allegedly used to trade small electronic goods across the EU.

“At issue is a suspected VAT carousel fraud scheme, a criminal scheme that exploits the VAT exemption applicable to cross-border transactions between EU member states. According to the evidence gathered so far, between 2021 and 2025, the suspects allegedly used a chain of so-called missing traders – companies created for the purpose of evading VAT obligations – to distribute electronic goods within Greece and other EU countries, while avoiding the payment of VAT or enabling the fraudulent reimbursement of VAT that had never been paid.”

The probe has shown that the suspected scheme caused losses of at least €46.9 million to the EU and Greek budgets through unpaid VAT. In addition, investigators identified indications that a further €24.2 million in VAT was either not paid or incorrectly declared.

The investigation also resulted in the freezing of cryptocurrencies worth approximately €900,000 and other digital assets valued at around €4.5 million. According to the Greek authorities, this constitutes the largest freezing of digital assets ever carried out at national level.

In addition, freezing orders were issued for 88 real estate properties with an estimated value exceeding €4.5 million, as well as for multiple bank accounts.

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.