- The article discusses the denial of the right to deduct input VAT in Lithuania.
- The Supreme Administrative Court of Lithuania (SACL) handles cases where transactions are deemed not to have occurred, affecting VAT deductions.
- A recent case involved tax authorities concluding that transactions did not take place, leading to additional tax liability.
- The court emphasized that proving dishonesty requires establishing the existence of economic transactions.
- The SACL ruled that tax authorities can deny VAT deductions if transactions are based on abusive conduct or tax evasion.
- The court also addressed the allocation of costs for corporation tax purposes when VAT deductions are disallowed.
- The judgment highlighted the recognition of actual fuel supply costs under certain invoices, impacting corporation tax considerations.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
