DEL PRIEMONIU MOKESTINIU PRIEVOLIU IVYKDYMUI UŽTIKRINTI

(1), 84

(6), 90

(7), 91

(8)and 96

(3)of the Law of the Republic of Lithuania on Value Added Tax (Valstybės žinios (Official Gazette), No 35-1271, 2002), the Government of the Republic of Lithuania h a s r e s o l v e d:

1. To approve the following appended hereto: 1.
2. Cases When a Surety or Guarantee Must be Delivered for the Registration of a Taxable Person for VAT; 1.
3. Cases When the Tax Administrator Must Demand that the VAT Payer Deliver a Surety or Guarantee before the Deadline for the Filing of a VAT Return or for the Payment of VAT; 1.
4. Cases When the Tax Administrator Must Demand that the VAT Payer Deliver a Surety or Guarantee before the Carry-Forward and/or Refund of a VAT Excess or any Part Thereof; 1.
5. Cases When the Tax Administrator Has the Right to Prescribe that the Tax Period for the VAT Payer shall be a Calendar Month; 1.
6. Cases When the Tax Administrator Must Prescribe that VAT on Goods and/or Services Supplied shall be Withheld and Paid by the Purchaser/Customer.
7. This Resolution, with the exception of paragraph 1.5, shall enter into force on 1 July
8. Cases When the Tax Administrator Must Prescribe that VAT on Goods and/or Services Supplied shall be Withheld and Paid by the Purchaser/Customer as approved by paragraph 1.5 of this Resolution shall enter into force on 1 September
9. Prime Minister Algirdas Brazauskas Minister of Finance Dalia Grybauskaitė APPROVED by Resolution No 900 of the Government of the Republic of Lithuania of 13 June 2002 Cases When a Surety or Guarantee Must be Delivered for the registration of a Taxable Person for VAT
10. This is a description of cases when the local tax administrator seeking to secure the discharge of tax obligations (including the justifiability of the carry-forward or refund of a VAT excess) must demand that a surety or guarantee be delivered for the registration (either compulsory or voluntary) of a taxable person for VAT; such surety or guarantee shall be issued for up to one year by a banking or insurance institution licensed, respectively, for banking or insurance activities and established and operating in the Republic of Lithuania and shall certify the surety’s or the guarantor’s commitment to discharge VAT-related tax obligations of the taxable person who is being registered for VAT in the latter’s failure to discharge these obligations or to discharge them satisfactorily.
11. The local tax administrator must demand that a surety or guarantee referred to in paragraph 1 above be delivered when it has information that: 2.
12. the taxable person who has filed an application to be registered for VAT is a legal person with unlimited liability and neither the taxable person concerned nor its owner or full members possess any property that must be registered; 2.
13. the owner of the taxable person who has filed an application to be registered for VAT, the person controlling such taxable person, or a member of a managing body (other than the Supervisory Board and the Meeting of Participants) of the legal person, its senior finance officer (accountant) or a person authorised to perform, on behalf of and to the benefit of the taxable person concerned, any legal actions in relation to the economic activity of the taxable person, is a suspect, accused or defendant in criminal proceedings initiated for offences against finances or economic management or for a fraudulent recovery or non-payment of VAT to the State budget of the Republic of Lithuania, or any of these persons has an unspent conviction for any of the above-listed offences; 2.
14. the taxable person who has filed an application to be registered for VAT has not filed any of the returns or statements due, or failed to pay any of the taxes, late payment charges, fines, interest on tax credits to budgets or funds due, unless such taxes, late payment charges or fines have been deferred, or an application has been filed, in accordance with legal acts of the Republic of Lithuania, for the deferral of such taxes, late payment charges or fines, or there is a tax dispute concerning such taxes, late payment charges or fines, or the payer has filed an application, in the manner prescribed by the Government of the Republic of Lithuania, for the permission to pay such taxes, late payment charges and fines in property; 2.
15. the taxable person who has filed an application to be registered for VAT or its owner (in the case of a sole proprietorship) or the person controlling the taxable person concerned is also the owner or the controlling person of another taxable person and that other taxable person has not filed any of the returns or statements due, or failed to pay any of the taxes, late payment charges, fines, interest on tax credits to budgets or funds due, unless such taxes, late payment charges or fines have been deferred, or an application has been filed, in accordance with legal acts of the Republic of Lithuania, for the deferral of such taxes, late payment charges or fines, or there is a tax dispute concerning such taxes, late payment charges or fines, or the payer has filed an application, in the manner prescribed by the Government of the Republic of Lithuania, for the permission to pay such taxes, late payment charges and fines in property; 2.
16. not earlier than three months before the filing of an application to be registered for VAT there was a change in the owner or the controlling person of the taxable person and the previous owner or the controlling person met the criteria defined in paragraph 2, unless the controlling person has changed as a result of a forced sale of shares (interest, contributions) in accordance with the Civil Code of the Republic of Lithuania; 2.
17. the owner of the taxable person (if it is a sole proprietorship) who has filed an application to be registered for VAT, the person controlling such taxable person, or a member of a managing body (other than the Supervisory Board and the Meeting of Participants) of the legal person, its senior finance officer (accountant) or a person authorised to perform, on behalf of and to the benefit of the taxable person concerned, any legal actions in relation to the economic activity of the taxable person have been administratively penalised under the Code of Administrative Offences of the Republic of Lithuania for any of the following offences: 2.6.
18. an offence specified in Articles 1721

(2)and 1721

(3)of the Code of Administrative Offences of the Republic of Lithuania; 2.6.

1. sale of goods without documents or a forgery of documents; 2.6.
2. fraudulent financial accounting; 2.6.
3. illegal commercial, economic, financial or professional activities.
4. A taxable person who has not delivered a surety or guarantee specified in paragraph 1 above shall not be registered for VAT. –––––––––––––––– APPROVED by Resolution No 900 of the Government of the Republic of Lithuania of 13 June 2002 Cases When the Tax Administrator Must Demand that the VAT Payer Deliver a Surety or Guarantee before the Deadline for the Filing of a VAT Return or for the Payment of VAT
5. This is a description of cases when the local tax administrator seeking to secure the discharge of tax obligations must demand that the VAT payer deliver a surety or guarantee before the deadline for the filing of a VAT return or the payment of VAT for the tax period concerned; such surety or guarantee shall be issued by a banking or insurance institution licensed, respectively, for banking or insurance activities and established and operating in the Republic of Lithuania and shall certify the surety’s or the guarantor’s commitment to discharge VAT-related tax obligations of the VAT payer in the latter’s failure to pay the due VAT before the deadline specified in this Article.
6. The local tax administrator must demand that a surety or guarantee referred to in paragraph 1 above be delivered when: 2.
7. any of the situations defined in subparagraphs 2.1, 2.2, 2.5 or 2.6 of the Cases When a Surety or Guarantee Must be Delivered for the Registration of a Taxable Person for VAT as approved by this Resolution arises or is discovered; 2.
8. the VAT payer has been notified, for reasons defined in paragraph 3.2 of Cases When the Tax Administrator Has the Right to Prescribe that the Tax Period for the VAT Payer shall be a Calendar Month as approved by this Resolution, that the tax period for him shall be a calendar month and not the period previously prescribed; 2.
9. the tax administrator has been informed by crime investigating authorities that an investigation into the activities of the VAT payer has been started for alleged criminal acts, where these are or may be related to an unsatisfactory discharge of obligations of a VAT payer (including unjustified carry-forward and refund of a VAT excess). –––––––––––––––– APPROVED by Resolution No 900 of the Government of the Republic of Lithuania of 13 June 2002 Cases When the Tax Administrator Must Demand that the VAT Payer Deliver a Surety or Guarantee before the Carry-Forward and/or Refund of a VAT Excess or any Part Thereof
10. This is a description of cases when the local tax administrator seeking to make sure that the carry-forward or refund of a VAT excess is justifiable must demand that the VAT payer deliver a surety or guarantee before the carry-forward and/or refund to the VAT payer of the VAT excess (or any part thereof); such surety or guarantee shall be issued by a banking or insurance institution licensed, respectively, for banking or insurance activities and established and operating in the Republic of Lithuania and shall certify the surety’s or the guarantor’s commitment to discharge VAT-related tax obligations of the VAT payer in the event that it is later discovered that the carry-forward and/or refund of the VAT excess (or any part thereof) was unjustifiable.
11. The local tax administrator must demand that a surety or guarantee referred to in paragraph 1 above be delivered when: 2.
12. the VAT payer requests to carry forward and/or refund a VAT excess that has accrued by reason of application of a zero-rate of VAT on the supplies of goods specified in Articles 41

(1)and 41

(2)of the Law of the Republic of Lithuania on Value Added Tax; 2.

1. any of the situations defined in subparagraphs 2.1, 2.2, 2.5 or 2.6 of the Cases When a Surety or Guarantee Must be Delivered for the Registration of a Taxable Person for VAT as approved by this Resolution arises or is discovered; 2.
2. the VAT payer has been notified, for reasons defined in paragraph 3.2 of Cases When the Tax Administrator Has the Right to Prescribe that the Tax Period for the VAT Payer shall be a Calendar Month as approved by this Resolution, that the tax period for him shall be a calendar month and not the period previously prescribed; 2.
3. the request to carry forward and/or refund a VAT excess is filed by a VAT payer who has been applying a zero-rate of VAT on the goods/services supplied/provided by him and later, due to the shortage of proof that a zero rate of VAT should have been applied at all (or that the services provided should have been deemed to have been provided outside the territory of the country), VAT at a standard rate (or a reduced rate, as the case may be) was prescribed (or the services were not deemed to have been provided outside the territory of the country) and the VAT additionally calculated by the tax administrator has not been paid yet, unless there is a tax dispute concerning this issue; 2.
4. the VAT excess to be carried forward/refunded has mainly accrued because the goods and/or services concerned have been acquired from VAT payers whose tax period for VAT purposes is a calendar half-year, and the tax period in which the obligation to calculate the output VAT arouse for these VAT payers has not expired yet. –––––––––––––––– APPROVED by Resolution No 900 of the Government of the Republic of Lithuania of 13 June 2002 Cases When the Tax Administrator Has the Right to prescribe that the Tax Period for the VAT Payer shall be a Calendar Month
5. This is a description of cases when the tax administrator has the right to prescribe that the tax period for the VAT payer shall be a calendar month despite the fact that the VAT payer concerned has applied, in accordance with Articles 84

(2)or 84

(5)of the Law of the Republic of Lithuania on Value Added Tax, for a different tax period and/or a different tax period has been prescribed for him.

1. The tax administrator shall have the right to prescribe that the tax period for a taxable person to be registered for VAT shall be a calendar month, if the person concerned has been instructed, in the prescribed manner, to deliver a surety or guarantee for the registration for VAT.
2. The tax administrator shall have the right to prescribe that, after the expiry of the current taxable period, the taxable period for the VAT payer shall be a calendar month if: 3.
3. any of the situations defined in subparagraphs 2.1, 2.2, 2.5 or 2.6 of the Cases When a Surety or Guarantee Must be Delivered for the Registration of a Taxable Person for VAT as approved by this Resolution arises or is discovered; 3.
4. it is discovered that the VAT payer had transactions (either direct or through intermediaries) which affected the size of a VAT obligation, with taxable persons: 3.2.
5. who failed to file tax returns and/or pay taxes; 3.2.
6. who are not registered, as prescribed by legal acts, as legal persons or taxpayers; 3.2.
7. who have been or may be deregistered from VAT on the tax administrator’s initiative for reasons laid down in Articles 75

(4)and 75

(5)of the Law of the Republic of Lithuania on Value Added Tax; 3.

1. against whom restructuring proceedings have been initiated; 3.
2. against whom bankruptcy proceedings have been initiated; 3.
3. the amount of VAT additionally payable to the budget as calculated during the inspection of the VAT payer is at least LTL 1 000; 3.
4. the tax administrator has been informed by crime investigating authorities that an investigation into the activities of the VAT payer has been started for alleged criminal acts, where these are or may be related to an unsatisfactory discharge of obligations of a VAT payer (including unjustified carry-forward and refund of a VAT excess). –––––––––––––––– APPROVED by Resolution No 900 of the Government of the Republic of Lithuania of 13 June 2002 Cases When the Tax Administrator Must prescribe that VAT on Goods and/or Services Supplied shall be Withheld and Paid by the Purchaser/Customer
5. This is a description of cases when Article 96

(3)of the Law of the Republic of Lithuania on Value Added Tax is invoked. 2. Article 96

(3)of the Law of the Republic of Lithuania on Value Added Tax is invoked where the tax administrator reasonably believes that the supplier of goods/provider of services may fail to discharge his VAT-related tax obligations, for the following reasons: 2.

1. the supplier of goods/provider of services is in bankruptcy or bankrupt; 2.
2. restructuring proceedings have been initiated against the supplier of goods/provider of services; 2.
3. the supplier of goods/provider of services has an underpayment of taxes, late payment charges or fines in excess of LTL 500 000; this amount shall not include outstanding taxes, late payment charges or fines: 2.3.
4. which have been deferred or for the deferral of which an application has been filed in accordance with legal acts; 2.3.
5. which are the object of a tax dispute; 2.3.
6. if an application has been filed in accordance with legal acts for the permission to pay these taxes, late payment charges and fines in property. ––––––––––––––––