Investigation Nebula: EPPO exposes multimillion VAT fraud in Croatia and Italy linked to organized crime

(Luxembourg, 26 November 2025) — The European Public Prosecutor’s Office (EPPO) in Venice and Zagreb has conducted a major operation uncovering large-scale VAT fraud involving Croatian and Italian companies, with connections to an Italian organized criminal group.

Cross-border investigation

According to the EPPO, the investigation — codenamed Nebula — uncovered a fraudulent network suspected of evading millions of euros in VAT through fictitious cross-border trade of electronic goods. The scheme reportedly involved issuing false invoices and setting up shell companies in both Croatia and Italy.

Scale and structure of the fraud

The network allegedly operated by moving goods across borders only on paper, enabling participants to claim tax refunds for nonexistent transactions. Preliminary estimates suggest that the damage to EU and national budgets amounts to several million euros.

Coordinated actions

Searches were carried out simultaneously in several locations across Croatia and Italy. Authorities seized documentation, electronic devices, and bank records. Several individuals are under investigation for fraud, money laundering, and participation in a criminal organization.

Involvement of organized crime

Evidence gathered so far points to ties between the companies involved and an Italian organized criminal group known for large-scale financial crimes. The case highlights how criminal networks exploit cross-border business frameworks to commit VAT carousel fraud across the EU.

“VAT fraud is not a victimless crime. It siphons off public funds that should benefit EU citizens,” said an EPPO spokesperson.

Next steps

The investigation continues as financial analyses and international cooperation between judicial and police authorities intensify. The EPPO emphasizes that all suspects are presumed innocent until proven guilty.

Author’s summary: The EPPO’s “Nebula” investigation exposes a multimillion-euro VAT fraud network between Croatia and Italy tied to organized crime, marking a major step in cross-border financial crime enforcement.

European Public Prosecutor’s Office — 2025-11-26