Lithuanian Court Clarifies VAT Liability, Tax Relief Abuse, and Deductibility of Construction Costs

• The Lithuanian Supreme Administrative Court ruled that the applicant could not deduct construction and improvement costs for Personal Income Tax due to insufficient supporting documentation.
• The applicant was denied Primary Residence Tax Relief because they only formally declared residence without actually living in the properties, constituting abuse of rights.
• The court clarified that under a joint activity agreement, the applicant was the sole taxable person for VAT, as they independently conducted the economic activity.
• The applicant failed to declare and pay VAT on income from real estate resale, and attempts to obtain tax benefits through formal declarations were rejected.

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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