Brussels jewellers arrested for millions in tax fraud

The Brussels court on Tuesday arrested the managers of two Brussels jewellery shops on suspicion of tax evasion worth several million euros. The jewellers are accused of offering embassies false invoices for the purchase of watches and jewellery in order to unlawfully avoid paying value-added tax (VAT) on the merchandise, reports various Belgian media based on a report by the Brussels public prosecutor.

While it is legal for a number of embassy staff to enjoy a VAT exemption for purchases made in a personal capacity, it appears that the jewellery shop managers took advantage of the system by offering VAT-free invoices to 14 embassies between 2010 and 2014.

"Research into the case, which started in early 2015, shows that the VAT exemption certificates are false," says Ine Van Wymersch, spokeswoman for the Brussels prosecutor. “The customers were in fact Belgian individuals subject to VAT. This scheme has enabled the two companies to evade taxes for years.”

The three managers were arrested on Tuesday following a raid of the two jewellery stores, their studios and the managers’ private homes.