International VAT Fraud Operation Uncovered in Vienna with €4.8 Million in Damages
An internationally organized network of VAT fraudsters has been apprehended by investigators in Vienna, leading to significant damage amounting to approximately €4.8 million. This operation involved close collaboration among the Federal Criminal Police Office, the Office for Fraud Prevention, and the Vienna Public Prosecutor's Office.
The investigation commenced in mid-2024 when the Financial Intelligence Unit (FIU) detected suspicious financial flows. This eventually revealed a vast system of shell companies used to fraudulently claim input tax credits. In response, the interdepartmental task force "Dolus" was established in early 2026.
The perpetrators utilized a division of labor to operate the fraudulent network: individuals were brought to Austria, installed as company owners, and subsequently sent back abroad. It is estimated that these shell companies number in the thousands.
The investigation has identified approximately 190 individuals linked to the criminal organization, primarily from Pakistan, Syria, Afghanistan, and Morocco. In March 2026, a major operation resulted in four arrests, six individuals being questioned, and 16 house searches conducted.
During raids, law enforcement seized €185,965 in cash, £3,000 in Pakistani currency, 12,000 Pakistani rupees, 100 mobile phones, 28 PCs, numerous documents, bank records, and 200 bank cards. Investigators also uncovered instances of welfare fraud, including manipulated incomes, sham employment, and sham marriages.
Interior Minister Gerhard Karner praised the Federal Criminal Police Office for their expertise and diligence in dismantling the fraud network, stating, "I thank all the investigators for their excellent work."
Andreas Holzer, Director of the Federal Criminal Police Office, emphasized the importance of close cooperation between authorities, highlighting this case as a success.
Finance Minister Markus Marterbauer reinforced the government's commitment to combating tax fraud: "Fraud harms society and the many honest taxpayers. The establishment of shell companies for tax fraud is detrimental to everyone, including honest businesses and employees, and impacts the financing of the welfare state."