EU Prosecutors Highlight Scale of Customs and VAT Fraud, Costing €45 Billion

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The European Public Prosecutor’s Office (EPPO) says fraud targeting customs duties and value-added tax (VAT) is “reshaping the criminal ecosystem” in the European Union, inflicting an estimated €45 billion (US$52.6 billion) in damage to EU and national budgets in 2025.

According to the EPPO’s latest annual report, the office was handling 3,602 active cases at the end of 2025, a 35% increase from 2024, with total estimated damage of €67.27 billion (US$78.72 billion). While expenditure fraud (involving EU subsidies and funds) accounts for the majority of active cases, it represents less than a third of the overall financial damage to EU and national budgets. By contrast, while there were fewer cases of revenue fraud, it makes up nearly 67% of the estimated damage.

EPPO chief prosecutor Laura Kövesi said:

With 981 ongoing VAT and customs fraud cases worth €45 billion of estimated damage, both to the EU and national budgets, we are making a dent into a criminal industry that has been ignored or tolerated for far too long. This is imperative for our security in the European Union, as well as for our public finances.

The report also shows increases in prosecution, with indictments rising by 34% from 2024, and a conviction rate of 95% in EPPO cases.

The EPPO says the findings give a new perspective on organized crime across the EU, combining traditional illegal markets, like drugs, human trafficking, and weapons, with lucrative tax fraud schemes that can be difficult to detect at a national level.

The EPPO also notes it has observed “an alarmingly high level of fraud orchestrated by large-scale organised crime groups, related to the import and sale of goods originating outside the EU, with a heavy influence of Chinese criminal networks.”