Labubu shop in Vienna raided on suspicion of tax evasion, fraud
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The shop is alleged to have offered fake versions of the rabbit-eared collectibles, also known as Lafufu.
PHOTO: BLOOMBERG
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VIENNA – Austrian customs officers have raided a pop-up Labubu store in central Vienna, suspecting its proprietors of tax evasion and selling falsified versions of the hyped plush dolls.
The shop is alleged to have offered fake versions of the rabbit-eared collectibles, also known as Lafufu, and failing to connect its cashier machines to the tax registry, Austria’s Finance Ministry said in a statement.
Sales in August amounted to €43,000 ($65,000).
The shop’s only seller at the time of the police hit lacked an employment permit and was registered as a low-income worker – a category that is typically used for part-time employees with a salary of less than a third of the minimum wage. The pop-up store faces fines of up to €20,000, according to the statement.
The Chinese toys have become a social-media sensation with new series usually selling out within minutes. Labubus often have a resale price that is worth more than the official retail value, which starts at about €15 in Austria.
Shares of its producer, Pop Mart International Group Ltd. have rallied 251 per cent this year, taking its total market value to HK$422 billion (S$70 billion). BLOOMBERG
