VAT Deduction Denied: Lithuania’s Court Rulings on Non-Existent Transactions and Legal Implications

• The article discusses cases where VAT deduction is denied due to non-existent transactions.
• It highlights how the Supreme Administrative Court of Lithuania assesses such disputes.
• The right to deduct VAT is not applicable if transactions did not occur, without needing to prove dishonesty.
• A case example involves tax authorities concluding that transactions between a company and others did not happen, leading to additional tax liability.
• The court stated that proving dishonesty requires evidence of a real transaction.
• The court emphasized using logic, justice, reasonableness, and fairness in evidence assessment.
• An appeal argued that transactions with JSC X occurred, but the Court of Appeal disagreed.
• The appellant mentioned a criminal order not considered, but the court noted it involved a different defendant.
• The Supreme Administrative Court stressed systematic evidence assessment.
• The case showed the VAT invoice listed a manager as the seller, who was not employed by JSC X, and lacked details on who accepted the goods.

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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