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Lithuania – update

By October 25, 2019July 10th, 2021No Comments

As from 1 August 2019, Lithuanian domestic reverse charge also applies to mobiles, tablets and laptops…

As from 1 August 2019, Lithuanian domestic reverse charge also applies to mobiles, tablets and laptops.

This reverse charge is expected to apply on all sales made by established and non-established suppliers in Lithuania. In such cases, the customer will self-account the VAT in its Lithuanian VAT return. The Official Gazette with details about these changes is published in the website of the Ministry of Finance.

The extension of domestic reverse charge mechanism intends to reduce carrousel fraud on those items that are often used by fraudsters due to their small volume and high value. Such extension is exceptionally allowed by the European Commission as a derogation of Article 193 of the VAT Directive. Many other countries implemented a similar system of reverse charge on IT equipment, including Italy, Spain, Germany or Denmark.

The above information was kindly provided by Marosa (Spain). If you have any questions or need any clarifications, please contact: Pedro Pestana da Silva at: pps@marosavat.com.