Belgium loses millions to VAT fraud on Chinese imports
Massive imports from Chinese e-commerce platforms like Temu enable large-scale VAT fraud, costing Belgium an estimated 611 million euros, De Standaard writes on Monday, based on the latest report by the European Public Prosecutor's Office (EPPO). Across Europe, VAT fraud amounts to 13 billion euros.
Belgium's major transport hubs, in particular Bierset airport, where up to 200,000 parcels arrive from China every day, make the country a hotspot for this fraud, which is often linked to organised crime.
Fake companies
Criminals use two main methods. Some set up fake companies with VAT numbers and pretend to export goods to another EU country to evade tax. Others import goods through Belgium, falsely declaring another EU country as the final destination to avoid VAT, and then sell them on the black market. The goods include electronics, toys and clothing, with the fraudsters charging VAT but never paying it.
EPPO warns that VAT fraud fuels organised crime, including drug and human trafficking, while flooding the market with unsafe products. Despite the problem, Belgium has only 3,200 customs officers to manage a sharp increase in import declarations from 400 million in 2023 to 1 billion in 2024. EPPO is calling for an urgent increase in resources and investigators to curb this growing financial crime.
© PHOTO AFP
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