GOVERNMENT OF THE REPUBLIC OF LITHUANIA

GOVERNMENT OF THE REPUBLIC OF LITHUANIA Official translation GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION ON THE APPLICATION OF VALUE ADDED TAX RELIEF FOR GOODS SUPPLIED AND SERVICES PROVIDED TO DIPLOMATIC MISSIONS AND CONSULAR POSTS OF FOREIGN STATES, REPRESENTATIONS OF INTERNATIONAL ORGANISATIONS, DIPLOMATIC STAFF OF THESE MISSIONS AND POSTS, CONSULAR EMPLOYEES, ADMINISTRATIVE TECHNICAL STAFF AND MEMBERS OF THEIR FAMILIES FORMING PART OF THEIR HOUSEHOLDS AS WELL AS THE ARMED FORCES OF FOREIGN STATES No 862 of 12 June 2002 Vilnius Acting in accordance with paragraph 3 of Article 36 and paragraphs 3, 4 and 5 of Article 47 of the Law of the Republic of Lithuania on Value Added Tax (Official Gazette, No 35-1271, 2002), the Government of the Republic of Lithuania r e s o l v e s: 1. To establish that in applying the value added tax relief on imports stipulated in paragraphs 1 and 2 of Article 36 of the Law of the Republic of Lithuania on Value Added Tax, provisions and relevant conditions stipulated in the international agreements of the Republic of Lithuania - the 1961 Vienna Convention on Diplomatic Relations (Official Gazette, No 83-2455, 1999) and the 1963 Vienna Convention on Consular Relations (Official Gazette, No 83-2456, 1999) - shall apply. 2. To approve the enclosed herewith: 2.1. The Procedure of refunding value added tax for goods and services acquired by diplomatic missions and consular posts of foreign states and representations of international organisations for their official activities as well as by diplomatic staff of these missions and posts, consular employees, administrative technical staff and members of their families forming part of their households for their personal use and (

1. or)upon their establishment in the Republic of Lithuania 2.2. The List of the VAT-refundable goods and services acquired by diplomatic missions and consular posts of foreign states and representations of international organisations for their official activities as well as by diplomatic staff of these missions and posts, consular employees, administrative technical staff and members of their families forming part of their households for their personal use and (
2. or)upon their establishment in the Republic of Lithuania 2.3. Procedure and cases of refunding the value added tax to the armed forces of foreign states for goods and services acquired in the Republic of Lithuania. 3. To authorise the Ministry of Finance in cases when the procedure applied by a foreign state of refunding the value added tax (or an equivalent tax) to a diplomatic mission or a consular post of the Republic of Lithuania is less or more favourable than the one applied to the diplomatic mission or the consular post of that state in the Republic of Lithuania to approve, upon the proposal of the Ministry of Foreign Affairs, a less or more favourable procedure of refunding the value added tax to the diplomatic mission or the consular post of that state in the Republic of Lithuania. 4. To declare invalid: 4.1. Resolution No 895 of 17 July 1998 of the Government of the Republic of Lithuania “On Refunding Value Added Tax to the Embassy and Consulate General of the Polish Republic”; 4.2. Resolution No 178 of 19 February 1999 of the Government of the Republic of Lithuania “On Refunding Value Added Tax to the Embassy the Federal Republic of Germany”; 4.3. Resolution No 1448 of 20 December 1999 of the Government of the Republic of Lithuania “On Refunding Value Added Tax to the Embassy of the United States of America”; 5. This Resolution, with the exception of paragraph 3 hereof, shall come into effect as of 1 July 2002. Prime Minister Algirdas Brazauskas Minister of Finance Dalia Grybauskaitė APPROVED by the Government of the Republic of Lithuania Resolution No 862 of 12 June 2002 PROCEDURE AND CASES OF REFUNDING VALUE ADDED TAX TO THE ARMED FORCES OF FOREIGN STATES FOR GOODS AND SERVICES ACQUIRED IN THE REPUBLIC OF LITHUANIA 1. In accordance with this Procedure and cases of refunding value added tax to the armed forces of foreign states for goods and services acquired in the Republic of Lithuania (hereinafter referred to as the Procedure), the value added tax (hereinafter referred to as VAT) for goods and services acquired in the Republic of Lithuania shall be refunded to the armed forces of foreign states if their units carry out one of the following functions on the territory of the Republic of Lithuania: 1.1. carry out collective defence or other military operations; 1.2. take part in international military exercises; 1.3. take part in other events of military co-operation; 1.4. are preparing for collective defence or other military operations, military exercises or other events of military co-operation. 2. VAT shall be refunded only for such goods and services acquired in the Republic of Lithuania as are necessary for the use of a foreign military unit during the events indicated in paragraph 1 of this Procedure for which the payment inclusive of VAT has been effectuated. 3. Goods and services indicated in paragraph 2 of this Procedure may be acquired in the name of a foreign military unit or the diplomatic mission (the consular post) of a foreign state. 4. Contracts regarding the purchase of goods (services) from a VAT payer shall be drawn up in the name of the diplomatic mission or the consular post of a foreign state when the Minister of National Defence or a person authorised by him approves the cost estimate of exercises on the territory of the Republic of Lithuania for joint exercises of foreign military units and military units of the Republic of Lithuania where the diplomatic mission or the consular post is indicated as the payer for goods (services). 5. Contracts regarding the purchase of goods (services) from a VAT payer shall be drawn up in the name of a foreign military unit when: 5.1. foreign armed forces approve the cost estimate of the exercises on the territory of the Republic of Lithuania; 5.2. the payer for goods (services) indicated in the cost estimate is a foreign military unit. 6. When contracts regarding the purchase of goods (services) are drawn up in the name of a foreign military unit, a person duly authorised by that foreign military unit at the end of an event indicated in paragraph 1 of this Procedure shall submit to the Lithuanian army: 6.1. documents confirming the purchase of goods (services) (VAT invoice or other accounting documents used in its stead in accordance with the provisions of legal acts) as well as payment for these goods (services). Duly approved copies of these documents may be submitted; 6.2. a list of goods (services) which a foreign military unit acquired in the Republic of Lithuania for which a duly paid VAT may be refunded in keeping with the provisions of this Procedure. 7. The Lithuanian army shall: 7.1. certify by the seal and the signature of an authorised person the list of goods (services) acquired in the Republic of Lithuania as well as the documents (or copies thereof) of the acquisition of and payment for the goods (services); 7.2. submit a request to the Vilnius County State Tax Inspectorate to refund VAT, indicating therein the VAT amount and the details of the bank account to which the VAT refund should be transferred, accompanied by duly approved documents indicated in paragraph 7.1 of this Procedure. 8. When contracts of acquiring goods (services) have been drawn up in the name of the diplomatic mission or the consular post of a foreign state, this mission or post, upon the termination of an event indicated in paragraph 1 hereof, shall submit to the Vilnius County State Tax Inspectorate the list of goods (services) purchased in the Republic of Lithuania, duly signed by an authorised person, for which the paid VAT may be refunded in accordance with the provisions hereof, as well as documents (copies thereof) confirming the purchase and payment for these and a request to refund VAT, wherein it shall indicate the VAT amount to be refunded and the details of the bank account to which the refundable VAT should be transferred. 9. The Vilnius County State Tax Inspectorate shall decide concerning the refund of VAT within ten working days from the receipt of the said documents. 10. In the event the Vilnius County State Tax Inspectorate decides to refuse the refund of VAT completely or partially, it shall inform thereof, within five working days, the Lithuanian army or the diplomatic mission or the consular post of a foreign state if this diplomatic mission or the consular post has paid for the goods (services). 11. Upon the decision by the Vilnius County State Tax Inspectorate to refund VAT, the refundable amount (less bank charges) shall be transferred to the bank account indicated in paragraph 7.2 or 8 hereof. The Vilnius State Tax Inspectorate shall inform thereof the Lithuanian army or the diplomatic mission or the consular post of a foreign state if this mission or the post has paid for the goods (services). APPROVED by the Government of the Republic of Lithuania Resolution No. 862 of 12 June 2002 PROCEDURE OF REFUNDING VALUE ADDED TAX FOR GOODS AND SERVICES ACQUIRED BY DIPLOMATIC MISSIONS AND CONSULAR POSTS OF FOREIGN STATES AND REPRESENTATIONS OF INTERNATIONAL ORGANISATIONS FOR THEIR OFFICIAL ACTIVITIES AS WELL AS BY DIPLOMATIC STAFF OF THESE MISSIONS AND POSTS, CONSULAR EMPLOYEES, ADMINISTRATIVE TECHNICAL STAFF AND MEMBERS OF THEIR FAMILIES FORMING PART OF THEIR HOUSEHOLDS FOR THEIR PERSONAL USE AND (OR) UPON THEIR ESTABLISHMENT IN THE REPUBLIC OF LITHUANIA 1. The value added tax (hereinafter referred to as VAT) may be refunded for goods and services named in the list of goods and services for which VAT may be refunded in conformity with the Procedure established by these provisions, acquired for the official activities by diplomatic missions and consular posts of foreign states and representations of international organisations as well as for goods and services acquired by the diplomatic staff of these missions and posts, consular employees, administrative technical staff and members of their families forming part of their households (if these persons are not citizens of the Republic of Lithuania and do not hold permanent residence in the Republic of Lithuania) for personal use and (
3. or)upon their establishment in the Republic of Lithuania. 2. VAT may be refunded only for goods and services for which payment inclusive of VAT has been effectuated, on the basis of VAT invoices or other accounting documents used in their stead in accordance with the provisions of legal acts, provided that each of these is no less than LTL 800 worth of goods and services (inclusive of VAT) for which VAT may be refunded. With regard to goods and services listed in paragraphs 8, 11, and 12 of the list referred to in paragraph 2.2 of this Resolution, VAT shall be refunded irrespective of the value of goods and services acquired. 3. At the end of each quarter, diplomatic missions and consular posts of foreign states and representations of international organisations shall draw up a list of goods and services acquired during that quarter and shall submit this list to the Ministry of Foreign Affairs, attaching thereto the documents confirming the purchase of these goods and services (VAT invoice or other accounting documents used in its stead in accordance with the provisions of legal acts) as well as documents confirming payment for these goods and services. Duly certified copies of documents confirming acquisition and (
4. or)payment may also be submitted. 4. Upon due review and approval of the list of goods and services acquired, the State and Diplomatic Protocol Service of the Ministry of Foreign Affairs shall further such list of goods and services as well as the documents confirming payment for them to the Vilnius County State Tax Inspectorate. 5. Upon receipt of the documents indicated in paragraph 4 of this Procedure, the Vilnius County State Tax Inspectorate must within 20 days check these documents and transfer the refundable VAT amount to the accounts of diplomatic missions and consular posts of foreign states or representations of international organisations held in Lithuanian banks. A relevant record shall be made in the documents of the claimants, and a copy of these documents shall be sent to the Ministry of Foreign Affairs which shall inform the claimants thereof. APPROVED by the Government of the Republic of Lithuania Resolution No 862 of 12 June 2002 VAT-REFUNDABLE GOODS AND SERVICES ACQUIRED BY DIPLOMATIC MISSIONS AND CONSULAR POSTS OF FOREIGN STATES AND REPRESENTATIONS OF INTERNATIONAL ORGANISATIONS FOR THEIR OFFICIAL ACTIVITIES AS WELL AS BY DIPLOMATIC STAFF OF THESE MISSIONS AND POSTS, CONSULAR EMPLOYEES, ADMINISTRATIVE TECHNICAL STAFF AND MEMBERS OF THEIR FAMILIES FORMING PART OF THEIR HOUSEHOLDS FOR THEIR PERSONAL USE AND (OR) UPON THEIR ESTABLISHMENT IN THE REPUBLIC OF LITHUANIA 1. Means of transport: 1.1. all types of cars and their parts; 1.2. motorcycles, mopeds, bicycles. 2. Radios, sound equipment, TV sets, players and VCRs, microphones, antennas. 3. Household equipment (washing and drying machines, refrigerators, microwave ovens, freezers, coffee machines, sewing machines, etc.) 4. Furniture, interior articles (mirrors, lamps). 5. Pianos and grand pianos. 6. Household articles and appliances (tableware, cutlery, etc.) 7. Textile articles (curtains, table cloths, bed covers, towels, bed linen). 8. Fuel for means of transport. 9. Equipment and machinery necessary for the official activities of diplomatic missions, consular posts and representation of international organisations (computers, copying machines, communications equipment, typewriters, security systems, calculation machines). 10. Reconstruction and renovation of diplomatic missions, consular posts, representations of international organisations, construction materials (on the basis of bilateral parity only). 11. Communications services. 12. Fees for space rent, heating, electric energy, water supply and other utilities. 13. Copying paper, printing of business cards, booklets, invitations. 14. Stationery. 15. Clothing for representation (dinner jackets, tailcoats, suits, dresses, ladies’ suits, shirts, various ties, shoes accompanying the said clothes, raincoats, coats and fur coats as well as relevant accessories (wrist watches, hand bags, gloves, tie pins, cuff links, etc.) Note. Paragraphs 9-14 shall apply only to diplomatic missions, consular posts, representations of international organisations and residences of heads of diplomatic missions, consular posts and international representations.