Bulgaria, represented by the National Investigation Service, is one of 19 countries taking part in a large-scale operation against an organization that allegedly sold more than one million used mobile phones as new. The scheme is believed to have caused losses of at least EUR 300 million to consumers in the EU, as well as more than EUR 30 million in VAT loss for several EU Member States.
The European Public Prosecutor’s Office in Cologne has been conducting searches and seizures in connection with the operation since September 26.
The investigation, code-named Troja, alleges that the suspects assembled mobile phones from used parts in Hong Kong and the UAE, then transported the phones to the Netherlands, where they were cleaned and packaged. The phones were subsequently delivered to warehouses in Germany and sold online as new to consumers across the EU.
The evidence indicates that shell companies based in Austria, Bulgaria, Germany, the Netherlands, and Switzerland were committing fraud using the VAT margin scheme to increase their profits since at least 2018. The used mobile phones were sold to end consumers and between shell companies under the so-called VAT margin scheme, where a reseller pays VAT only on its margin – the difference between the purchase price and the selling price. It applies only to resold goods on which VAT has already been paid.
Since the phones were presented as new, VAT was imposed on their full selling price. The scheme allegedly misled customers across the EU and caused VAT loss in every country where the used devices were sold.
The operation involved 1,770 police officers and tax and customs officials across Bulgaria, Austria, Belgium, Croatia, Cyprus, Estonia, Finland, Germany, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Spain, Switzerland, and the Netherlands. More than 160 searches were carried out.
Seven suspects, including the two alleged leaders of the organization, were arrested in Austria, Germany and Spain.
Bulgaria Participates in EU Operation over Alleged EUR 300 Mln Mobile Phone Fraud 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-09-29 11:54:02
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