Huge VAT operation in Portugal: Search at 250 points, suspicious damage exceeding 100 million euros

As part of the major economic crime investigation carried out in Portugal under the coordination of the European Public Prosecutor's Office (EPPO), a search was launched at approximately 250 points across the country on the morning of October 7.

The operation, involving around 700 staff of the Polícia Judiciária, is investigating the complex method of VAT fraud known as “carrossel do IVA”, as well as suspicions of money laundering and misuse of European funds.

Preliminary information indicates that the damage caused to the public by the investigated transactions exceeds 100 million euros.

However, since the operation continues, different figures are published regarding the number of detentions and total damage. For this reason, the figures that have not yet been finalized should not be treated as the final balance sheet.

The center of the investigation is Porto, links extend to Lisboa

The majority of the operation is carried out in the north of the country.

While Porto is at the center of the files being investigated, connections between companies and individuals extend to different regions, including Grande Lisboa.

Searches are carried out at companies, residences and other addresses related to the investigation.

In addition to Polícia Judiciária, Autoridade Tributária staff also support the operation.

How does the “IVA carrossel” work?

VAT carousel fraud is based on abuse of the cross-border trading system, particularly within the European Union.

With a simplified example:

Company A in Portugal is another He buys a phone from an EU country without paying VAT.

He sells the phones to company B in Portugal by adding VAT and collects the VAT.

However, company A disappears without paying the tax it collected to the state.

The product is then resold through other companies, and the company at another point in the chain can request a discount or refund from the state for the VAT allegedly paid.

Circulating the same products or fraudulent transactions over and over again between companies turns the system into a “carousel.”

Why are mobile phones used?

Small volumes of high value products are particularly attractive in such scams.

Mobile phones and electronic products are therefore among the frequently used goods in VAT carousel investigations in Europe.

One of the important parts of today's investigation focuses on international phone trading allegedly carried out between companies.

100 million euros is not a finalized loss

It is important to correctly read the legal meaning of the figures published today.

The amount exceeding 100 million euros is not a tax loss determined by a final court decision.

Suspicious damage at the current stage of the investigation.

Likewise, people for whom a search or detention order has been issued cannot be considered guilty.

Following the operation, it will also be determined which charges the prosecutor's office and the courts will file against which people.

Therefore today The correct description of the development is that one of the most comprehensive economic crime investigations of recent years has begun in Portugal.

Resources

Procuradoria Europeia — European Public Prosecutor's Office

https://www.eppo.europa.eu/

Policia Judiciaria

https://www.policiajudiciaria.pt/

Renascença — October 7, 2026

https://rr.pt/noticia/pais/2026/10/07/procuradoria-europeia-realiza-250-buscas-em-operacao-contra-fraude-ao-iva/488147/

Diário de Notícias da Madeira — 7 October 2026

https://www.dnoticias.pt/2026/10/7/508037-pj-faz-250-buscas-em-megaoperacao-contra-fraude-de-100-milhoes/