January 2015 Newsletter | Leinonen Lithuania

Dear reader,

Leinonen Lithuania is pleased to announce that Algirdas Kviklys, Senior Tax Advisor who gained his tax consulting experience in one of the Big4 companies joined Advisory Unit.

Algirdas gathered years of tax consulting experience while being engaged in significant tax optimisation and tax risk management projects, has a great knowledge on taxation issues related to international trading and other transactions. Algirdas provided tax consulting services to entities operating in financial, insurance, retail, production, construction, transport, energy and other sectors. One of the main specialisation areas of Algirdas – indirect taxation and application of the Union Customs Code.

LAW

TAXES

Small partnerships

Since 1 January 2015 amendments related to the taxes of the members of the Small Partnerships to the State Social Insurance Fund Board (SSIFB) have come into force.

* If exceptions are not applied.

European Union Court of Justice

09 October 2014 ECJ Case C‑492/13 (Traum EOOD) – The ECJ spoke up that the tax administrator cannot preclude granting a VAT exemption in respect of the tax payer just on the grounds that the purchaser of the goods was not registered for VAT purposes and the tax payer has proven neither the authenticity of the purchaser’s signatures on the purchasing documents nor the authority to represent the purchaser unless the evidence exists that the supplier when supplying had not acted in good faith or negligently. It is applicable especially in those cases where the tax administrator has proven the sufficiency of the tax payers’ available documents for refund of input VAT. Such ECJ practice should be taken into account in the cases when the Lithuanian tax administrator argues the VAT rate application just on the basis of insufficiently qualitative documents possessed by a tax payer.

02 October 2014 ECJ Case C‑446/13 (Fonderie 2A) – The ECJ pointed out that in the cases where the goods are supplied to a purchaser in another EU Member State and before having them dispatched the finishing work is carried out on them in the purchaser’s country, such supply will be deemed to be carried out in the purchaser’s country. In other words, such supply for the vendor at first shall be regarded as the transfer of the goods for the purposes of business, and upon their completion as the domestic supply in the purchaser’s country. For that reason, the obligations to be registered for VAT purposes in the purchaser’s country may appear.

Do you need advise in Lithuania?

Leinonen Lithuania helps companies enter and succeed in the Baltic and Lithuanian markets.

If you need any help or more detailed information, please contact:

MAŽENA BIRBALIENĖ

Head of advisory unit

tel. +370 656 51728

e-mail: mazena.birbaliene@leinonen.lt

ALGIRDAS KVIKLYS

Senior Tax Advisor

tel. +370 662 94443

e-mail: algirdas.kviklys@leinonen.lt

Leinonen Group is a Finnish-owned private accounting and advisory company, which was established already in 1989. Leinonen Group helps companies enter and succeed in challenging business environments by offering reliable accounting, payroll management, advisory, administration, and audit services. The deep local expertise and personal service approach, combined with wide international presence, is our strength. Our 13 offices can be found in the main cities of 11 countries – Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Poland, Bulgaria, Hungary, Russia, and Ukraine.

Read more: www.leinonen.eu

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Best Regards

Leinonen Lithuania

Vilnius | Kaunas

+ 370 5237 5040

leinonen@leinonen.lt

www.leinonen.lt