Finnish Customs Investigates €60m Tax Fraud in Used Vehicle Imports

Finnish Customs has opened a comprehensive investigation into suspected tax fraud within the used car trade, uncovering a scheme that may have cost the state more than €60 million. Authorities allege that over 3,500 vehicles were imported into Finland through illicit arrangements designed to bypass standard value-added tax (VAT) obligations. The case highlights significant gaps in the monitoring of intra-EU trade and the exploitation of tax loopholes by organised networks.

Background and Context

The investigation was triggered by audits conducted by the Finnish Tax Administration on companies selling imported vehicles to local dealerships. These inspections revealed evidence that margin taxation—a rule applying VAT only to the profit margin of second-hand goods—was being used inappropriately to avoid full tax liabilities. According to Finnish Customs, the vehicles, valued at approximately €115 million, were purchased from other EU member states via large online auction platforms and brought into Finland as intra-EU acquisitions.

Key Figures and Entities

Central to the alleged fraud are several Finnish intermediary firms that used VAT identification numbers tied to operators in Bulgaria and Germany. Authorities state that these numbers belong to actors engaged in fraudulent activity. The investigation also focuses on a major national dealership chain, identified by Moottori magazine as J. Rinta-Jouppi. Jani Koski, the chain's chief financial officer, confirmed that authorities carried out inspections at company sites, seizing equipment belonging to employees. Eight individuals linked to the intermediary firms face suspicion, along with purchasing staff at the dealership chain.

Legal and Financial Mechanisms

The fraud allegedly hinged on the manipulation of tax classification. While the vehicles entered Finland as intra-EU acquisitions, the VAT for the country of sale remained unpaid. Subsequently, the intermediary firms generated invoices applying the margin taxation scheme in the names of the foreign operators. This practice, investigators say, allowed the companies to evade VAT on the acquisition and reduce tax payments on the resale in Finland. By treating the purchases as second-hand dealer transactions rather than standard imports, the network significantly lowered the tax due.

International Implications and Policy Response

Given the cross-border dimensions of the VAT fraud, the European Public Prosecutor’s Office (EPPO) has assumed competence over parts of the case. The remaining elements will be handled by prosecutors in western Finland. Finnish Customs has implemented security measures to ensure the recovery of potential tax claims, emphasising the need for tighter oversight of cross-border vehicle trade. The case includes suspected offences of aggravated tax fraud and aggravated accounting offences, with coercive measures first employed in 2024 and further actions taken in February 2026.

Sources

This report draws on information from Finnish Customs, public records of the Finnish Tax Administration, and reporting by Moottori magazine.