Finnish companies suspected of VAT fraud concerning intra-Community acquisitions of used vehicles

Finnish Customs is investigating wide-scale tax fraud where used vehicles purchased to Finland as intra-Community acquisitions from other EU Member States have been altered to vehicles subject to margin tax using receipts with incorrect information. In the cases under investigation, it has been established that more than 3 500 vehicles have been acquired and that vehicles have been purchased for a value of 115 million euros. The total amount of tax avoided exceeds 60 million euros.

The cases involve so-called margin tax fraud, where the value-added tax on the sale is calculated on the profit from the sale of the product. The VAT on the sale is lower if the vehicle is resold using the VAT margin scheme than if the vehicle was sold normally according to the general provisions. 

Incorrect VAT numbers used for the acquisitions

The Finnish so-called intermediate companies under investigation have purchased vehicles from big European auction sites. For their purchases, the intermediate companies have used e.g. the VAT numbers of fraudulent Bulgarian and German operators. Vehicles have been purchased as intra-Community acquisitions using the VAT numbers of these operators, but no VAT has been paid on them to the country of sale. After this, incorrect invoices including margin tax have been drafted for the Finnish companies’ bookkeeping in the name of the fraudulent operators. This procedure has resulted in the avoidance of VAT on intra-Community acquisitions and of the open tax payable in Finland for the resale of the vehicles.

Criminal suspicions also directed against one of Finland’s biggest car sales chains

The Finnish intermediate companies under investigations have resold the vehicles mainly to one of Finland’s biggest car sales chains. The preliminary investigation has found that persons involved in the purchasing operations of the car sales chain have been aware of the fraudulent activity relating to the vehicle imports.  

Cases investigated as aggravated offences

Regarding the cases in question, the Finnish Tax Administration has conducted tax audits on the Finnish intermediate companies and the care sales chain. Finnish Customs has also taken precautionary measures during the preliminary investigations. The cases have been investigated as aggravated tax fraud and aggravated accounting offences. Finnish Customs has carried out coercive measures against companies under investigation, for the first time already in 2024 and most recently in February 2026. 

The Finnish Tax Administration is the plaintiff in the cases of VAT fraud involving intra-Community acquisitions of vehicles investigated by Finnish Customs. For some of the criminal matters, the charges will be considered by the Prosecution District of Western Finland and for others by the European Public Prosecutor's Office (EPPO). The preliminary investigation of the criminal case is still ongoing.