Lithuanian companies Varlė and Topo Group are under investigation for alleged schemes involving the embezzlement of value-added tax (VAT), commonly referred to as tax carousel fraud. These searches were executed by the Financial Crime Investigation Service (FNTT) as part of a larger investigation overseen by the European Public Prosecutor’s Office. While the FNTT has stated they cannot confirm or deny specific details at this time, the investigation indicates a significant international effort to combat VAT fraud within the European Union.

The director of Varlė, Igor Tkačenko, declined to comment on the investigation, and similarly, Topo Group’s leader, Gailė Rusteikaitė-Vištejūnė, promised to provide insights via email later. The media has previously reported that Topo Group has been restructuring its operations, planning to close 12 stores by May 2025 as part of their business optimization strategy, which may now intertwine with the current legal troubles stemming from VAT issues.

The implications of this investigation could be substantial, raising concerns regarding tax integrity and compliance among companies in Lithuania and across Europe. As these investigations unfold, they highlight the broader challenges of VAT fraud that many countries face, necessitating stringent regulations and inter-agency cooperation within the EU to address such complex financial crimes.