The European Commission has closed its infringement proceedings against Lithuania in relation to VAT avoidance and the threshold for small enterprises. The proceedings were initiated due to Lithuania’s anti-abuse rule, which required legal entities controlled by the same person(s) to register for VAT if their combined revenue exceeded the threshold, regardless of whether or not an individual entity exceeded the threshold. The Commission found this rule to be disproportionate and contrary to the principle of fiscal neutrality. Lithuania amended the rule by adding provisions that exempt financially linked but independent entities from registration if they can prove that their management bodies and economic activities are not the same. The amendment came into effect on 1 January 2023, and as a result, the infringement proceedings have been closed.
Source Orbitax
Latest Posts in "European Union"
- EDPS Opinion on EPPO and OLAF Access to VAT Data for Combating EU Fraud
- EU Agrees on Temporary €3 Customs Duty for Low-Value E-Commerce Parcels from July 2026
- New InfoCuria case-law database and search tool
- New General Court VAT case – C-903/25 (Grotta Nuova) – No details known yet
- New General Court VAT case – C-914/25 (Modelo Continente Hipermercados) – No details known yet
