The Supreme Administrative Court of Lithuania defines economic activity for VAT purposes as any ongoing, remunerated activity, consistent with EU law, which includes production, trade, services, and the use of property for income. A person is considered a taxable person if they act independently, bearing their own economic risk, and this applies to both natural and legal persons. Significantly, individuals who substantially improve and sell property initially claimed for personal use are deemed to be conducting economic activity and are thus subject to VAT. The Court’s interpretation consistently relies on the principles established in EU Directive 2006/112/EC and the case law of the Court of Justice of the European Union (CJEU).
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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