A criminal network defrauded EU tax systems of nearly €69 million by exploiting loopholes in alcohol VAT regulations, a major investigation in Spain has revealed. The transnational scheme involved 8.2 million litres of untaxed alcohol and 93 shell companies across multiple countries.
The case highlights how inadequate alcohol tax enforcement fuels illicit trade, undercuts public health policies, and highlights the EU-wide need for more robust alcohol tax systems that benefit people’s health and protect against tax avoidance and evasion.
