Buyers urged to check VAT as used-car fraud emerges in Greece

The Association of Car Importers and Dealers is urging consumers to verify with Greek customs that VAT has been properly paid before purchasing a used vehicle, after authorities uncovered a cross-border VAT-fraud scheme involving imported cars.

According to investigators, a Bulgarian intermediary was used to bypass VAT obligations. Cars were purchased in Germany under the normal VAT regime, but then sold to Greek companies using invoices falsely claiming the EU margin scheme, which allowed buyers to avoid paying VAT at Greek customs.

The association warned that submitting false or misleading documents during customs clearance can lead to vehicle seizure, with owners required to pay outstanding taxes and fines before the car is released.

Authorities have so far identified 19 vehicles, mostly luxury models, worth more than €885,000, with estimated VAT losses to the Greek state exceeding €212,000.