Leinonen Lithuania shared practical issues of documentation of zero-rated VAT supplies

According to the VAT Law, the supplier of goods must justify application of zero-rated VAT by the documents accompanying the transaction.

Every transaction requires a careful assessment by the supplier of conditions of shipment and transfer of goods to the purchaser and its proper documentation. In the opposite case, in the event of such evidence lacking a proposal may come from the Tax Authorities to a taxpayer to apply the standard rate of VAT and its recovery from the purchaser almost leaves no hope.

This is well-illustrated by the practice of the Supreme Administrative Court of Lithuania (LSAC). From over than 20 administrative cases examined by LSAC during the period of 2010 – beginning of 2015, decisions favorable to taxpayers were adopted only in two cases. In most cases, documents provided by taxpayers during a tax investigation contained shortcomings.          

Therefore, it t was focused during the seminar on documentation obligations that arise from tax case-law with the purpose to illustrate them with actual examples of documents.

Number of participants pointed that instructions of the Tax Authorities to present certain documents during tax investigations performed seems redundant and increase administrative burden of tax compliance. Therefore, accounting specialists and sales managers together tried to agree what kind of documents in which cases should be collected and how such burden could be divided between employees of a supplier.

During the second part of the seminar, actual trading schemes of participants were reviewed and analysed, questions discussed. Participants of the seminar actively shared experience in tax investigations they were involved.

Leinonen Lithuania intends to organise more seminars on taxation issues and present not only the most recent tax practice but also to keep initiating discussions and sharing of actual tax situations between various business sectors.

Responses of the participants: 

Elinga Judickienė
Chief Accountant
Ermitažas, UAB

Thank you for the great seminar. The topic is very relevant and the speaker was competent and sincere. It was very interesting and useful to get live answers to questions in a comfortable group of participants.

Skaistė Vilčiauskienė
Deputy Director

Thank you for the perfectly organised seminar and answers to questions by the professional specialist.

Justina Šaltenė
Chief Accountant
Klinkerland, UAB

The topic was prepared really professionally, presentation of information left a great impression and whole organisation of the seminar in general surprised in a very good way. Than you, Leinonen team!

Margarita Kneitaitė
Chief Financier
Norameda, UAB

It is very pleasant that this kind of seminars content of which is based on actual experience gained while assisting various clients with their tax issues are held.

The speaker very clearly, reasonably and decisively presented the most relevant cases of documentation of international supply of goods and provided possible solutions how the risk of a tax dispute with the Tax Authorities could be lowered.

I was very pleased with such patience and warm communication of the organisers of the seminar and with very active audience.

Thank you, Leinonen!

Rūta Starkienė
Chief Financier
Lietlinen, UAB

The seminar was informative, reasonable and specific and the topic is relevant. The speaker is professional and competent. Analysis of actual cases presented in the seminar was useful.

Virginija Jablonskienė
Senior Accountant
Margūnas, UAB

The topic was presented and advance questions were discussed very professionally.

Edita Jonauskienė
Export Manager
Kamė, UAB

Great consultations and professional services.

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