A chain transaction is a group of transactions, where not only the supplier and the customer, but also intermediaries participate, and all transactions are related by a single delivery (the goods are transported directly from the supplier to the end customer).

There are risks involved related to incorrect VAT calculation. The customer does not have the right to deduct input VAT according to the incorrectly issued VAT invoices. Therefore, companies purchasing goods should evaluate the circumstances of the transaction and be certain that the transaction is formalised in a correct way. If the business partner incorrectly applies local VAT, the company does not have right to deduct such input VAT.

For more information, please read our Lithuanian website: https://leinonen.lt/news/news-2018/risks-to-the-customer-in-international-trade