- The article focuses on cases where the right to deduct input VAT is denied.
- The most common reason for denial is knowledge or should have known of fraudulent VAT practices by contractors.
- The tax authorities analyze various circumstances to determine if the right to deduct input VAT should be denied.
- The Supreme Administrative Court of Lithuania has set out legal basis for applying VAT deduction.
- The Court has ruled that each taxpayer is individually liable for their own infringement.
- The Court has also ruled that the tax administration must provide objective evidence to substantiate claims of knowledge of fraudulent VAT practices.
- The Court has rejected arguments that an intermediary should not be held liable for fraudulent VAT practices.
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.
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