Lithuanian Tax Newsflash

Jei norite Lietuvos mokesčių naujienlaiškį skaityti lietuvių kalba, spauskite čia:

Lietuvos mokesčių naujienlaiškis apžvelgia Europos Teisingumo teismo išaiškinimą dėl Lietuvos PVM įstatymo nuostatų atitikimo ES teisei.



	Tomas Kontautas Partner tomas.kontautas@sorainen.com



	Saulė Dagilytė Senior Associate saule.dagilyte@sorainen.com

Dear clients and cooperation partners,

On 21 October 2010 in the case of Nidera Handelscompagnie BV v. Valstybinė mokesčių inspekcija prie Lietuvos Respublikos finansų ministerijos the Court of Justice of the European Union (ECJ) ruled that denying input VAT deduction on the ground that the taxable person was not VAT registered at the time of supply is against European Union law where other substantive conditions for the right of deduction are met.

Until this ECJ decision, late VAT registration in Lithuania could have caused severe VAT consequences for the taxpayer. In some cases both output and input VAT could not be claimed back, thus considerably increasing transaction costs. Even when failure to register for VAT on time caused no harm to the state budget, strict application of the existing rules made this mistake very expensive for the taxpayer.

Although it is likely to take some time before suitable changes to Lithuanian VAT Law and its official commentary, the ECJ decision may already allow taxpayers to claim deduction of VAT incurred in relation to goods or services supplied prior to registration.

print HTML

You have received this e-mail with the Lithuanian Tax Newsflash because you are in the SORAINEN.
If you are not interested in receiving our Lithuanian Tax Newsflash in the future, please reply by clicking here.

Please note that the SORAINEN Newsflash is compiled for general information purposes only, free of obligation and free of legal responsibility and liability. It does not cover all laws or reflect all changes in legislation, nor are the explanations provided exhaustive. Therefore, we recommend that you contact SORAINEN or your legal advisor for further information. Electronic versions of the SORAINEN Newsflashes are available and can be subscribed to on the SORAINEN website – www.sorainen.com.