Seven people investigated for record CZK 4.7 billion VAT fraud

Czech police have charged seven people with VAT fraud in electronics trading, causing a record CZK 4.7 billion in losses. If convicted, they face five to ten years in prison.

The investigation, led by the National Centre for Combating Organized Crime (NCOZ), found that the group imported electronics from the US, UAE, and Hong Kong through Czech companies, then declared shipments to firms in Poland, Hungary, and Slovakia that never received the goods. The electronics went to other buyers not yet identified.

Police raided homes on Monday, detaining ten people, with six placed in custody on October 15. NCOZ worked with European and Slovak partners, conducted 19 searches, and seized assets worth CZK 42 million.