Translation from Lithuanian

Translation from Lithuanian Translation from Lithuanian GOVERNMENT OF THE REPUBLIC OF LITHUANIA R E S O L U T I O N No.546 On Value Added Tax Vilnius, 9 May 1996 Pursuant to the Law on Value Added Tax of the Republic of Lithuania, the Government of the Republic of Lithuania hereby r e s o l v e s:

1. To establish that: 1.
2. The value added tax (hereinafter “VAT”) payers with the average monthly VAT amount payable to the budget exceeding Litas 100 000 per month during the last three months’ period, shall prepay VAT to the budget on the 20th day of the current month, on the last working day, and on the 10th day of the next month - in 1/3 portions of the average monthly VAT amount payable to the budget during the last three months’ period. VAT on construction, and construction and mounting works shall be paid once a month prior to the 25th day of the next month; 1.
3. All importers shall pay, in accordance to the procedure established by the Government of the Republic of Lithuania for payment of taxes and duties in the Customs offices, the VAT on goods imported for domestic consumption to the account of that Customs office which executed the customs clearance procedure of said import for domestic consumption. This stipulation shall not apply to the import VAT assessed by the Customs on the long-term assets for manufacturing purposes imported by companies for their own needs and granted certificates by the local State Tax Inspectorates (and used for activities listed in the Classification of Economic Activities, Sections A, B, C, D, E, and F, and Section I - only for cargo trucks and towing vehicles manufactured in compliance with EURO-1, EURO-2, or EURO-3 standards and granted certificates by the manufacturer) with the total value (of an integral technological set or line or a-single-purpose equipment imported under a single contract) exceeding Litas 100 000; 1.
4. Local State Tax Inspectorates may issue to companies certificates with respect to the long-term assets for manufacturing purposes imported by the companies for their own needs (used for activities listed in the Classification of Economic Activities, Sections A, B, C, D, E, and F, and Section I - only for cargo trucks and towing vehicles manufactured in compliance with EURO-1, EURO-2, or EURO-3 standards and granted certificates by the manufacturer) with the total value (of an integral technological set or line or a-single-purpose equipment imported under a single contract) exceeding Litas 100
5. Such certificates shall be issued to companies - VAT payers which import the assets with the purpose of manufacturing taxable goods (or rendering taxable services). The import VAT on the aforementioned assets shall be paid (set off) in that local State Tax Inspectorate which issued the certificate; 1.
6. Special second-hand shops (second-hand keeping separate accounting in their respective shops) which sell second-hand goods bought from the residents of the Republic of Lithuania, upon such sales, compute the VAT amount payable to the budget - 15.25 per cent of the purchase price (price upon acceptance). The invoices for such goods sold may only identify the balance between the sales VAT and the assumed-purchase VAT; 1.
7. In cases provided by Article 20 of the Law on Value Added Tax of the Republic of Lithuania, the VAT payers producing VAT-taxable and VAT-exempt goods may elect to distribute directly (when possible according to the accounting data) the respective VAT amount recorded in the accounting during the taxation period and payable to the suppliers for VAT-taxable and VAT-exempt goods; Only one method of distribution may be used during a calendar year. When goods (or services) and long-term assets bought with VAT included in the price are used by the VAT payers for the purpose of producing VAT-taxable and VAT-exempt goods (or services), the non-deductible portion of the purchase VAT corresponding pro rata to the value of the VAT-exempt goods sold during that taxation period shall be entered into the accounts as costs; 1.
8. In case of providing the relief prescribed by Article 381 of the Law on Value Added Tax of the Republic of Lithuania, any company, institution or organisation may be considered as a manufacturing company provided the portion of its self-produced goods (or services) in the general sales proceeds is no less than 80 per cent. In determination of such proportion, the general sales proceeds shall not include receipts from the sales of goods received in exchange to the self-produced goods, and receipts from the sales of long-term assets used for a period over a year; 1.
9. VAT shall not be levied for packaging provided the seller of the goods, while selling the goods with the packaging included, refrains from transferring the title on the packaging to the buyer, but instead arranges for an agreement or a security with the purpose of the packaging to be returned. While returning the packaging, the buyer shall not assess VAT. For the packaging bought up from the residents, the shops (collectors) which bought up the packaging shall assess a corresponding sales VAT in accordance with Clause 1.4 hereof; 1.
10. VAT levied on goods and services which were paid for under technical and humanitarian aid programs with the funds from foreign countries or international organisations or foundations or from loans provided to the state as well as with the funds from the state-guaranteed loans provided to budgetary institutions, shall be refunded to the tax payer by the Treasury Department of the Ministry of Finance or the respective local State Tax Inspectorates in accordance with certificates of the State Tax Inspectorate at the Ministry of Finance. The import VAT due for the aforementioned goods and services, shall be cancelled by the Customs office in accordance with the certificate of the State Tax Inspectorate at the Ministry of Finance. In case of presence of an international agreement signed between the donor country and the Republic of Lithuania and ratified by the Seimas of the Republic of Lithuania, and providing a stipulation that no funds of a foreign country or an international organisation or foundation may be used for payment of VAT, the State Tax Inspectorate under the Ministry of Finance shall cancel the assessed sales VAT in respect of those goods and services which are purchased from the Lithuanian economic entities and paid for with the aforementioned funds; 1.
11. VAT shall not be levied on humanitarian aid (charity) dispatches imported into the customs territory of the Republic of Lithuania which are documented in accordance with the Regulations of Import to and Export from the Republic of Lithuania of Humanitarian Assistance (Charity) and Special Assistance Dispatches; 1.
12. Producers of agricultural products may, until 1 January 1997, pay the VAT on the agricultural products sold, within 10 days after the date of payment by the buyer for the supplied agricultural products; 1.
13. The deductible VAT amount shall be equal to the amount of VAT on purchases recorded in the accounts for the goods supplied, the services rendered and the goods imported for the purpose of producing and selling taxable goods and rendering taxable services. In case the corresponding purchase agreement provides that goods supplied(or services rendered) on credit shall be paid for later than in 30 calendar days after their supplying (rendering), the buyer may only include into the VAT statement the purchase VAT which was paid. The deductible VAT amount shall be assessed in compliance with the stipulations of the Law on Value Added Tax of the Republic of Lithuania; 1.
14. VAT shall only be levied on new long-term assets used for less than a year, including housing and other buildings. This stipulation shall not apply to the imported long-term assets when import VAT is assessed; 1.
15. VAT shall not be levied on fines or late-payment interest; 1.
16. When the assessed VAT on the goods sold is less (if the sales price for the goods is less than their purchase price or their customs value in case of their import) the purchase (import) VAT shall be deducted in full, and the amount of the sales VAT on these goods shall correspondingly be corrected (increased to the level of the purchase (import) VAT) in the VAT report. The said stipulation shall not apply to goods sold from the state reserves. The same procedure shall also apply to the correction (increase) of the amount of the sales VAT on goods in respect of which the amount of the purchase (import) VAT has been included in the VAT statement, provided it turns out that the said goods will not be sold or used for the purpose of manufacturing VAT-taxable goods or rendering VAT-taxable services (in case said goods deteriorate, burn etc.); 1.
17. Natural persons shall assess and pay VAT to the budget in case their employment-non-related income over the last year (over the preceding 12 months) received from sales of property (save for their income from the property owned when not more than a single item of a certain kind, irrespective of its value, was sold during the mentioned 12 months’ period) and other income exceeds Litas 50 000; 1.
18. VAT shall not be levied on grants and subsidies assigned from the budget to decrease the price of goods or services;
19. To approve the following attachments: 2.
20. The list of goods exempt from import VAT and sales VAT in the domestic market; 2.
21. The list of services exempted from value added tax; 2.
22. The list of goods made by producers of the Republic of Lithuania which are taxable, until 1 January 1997, by a temporary 9 per cent rate of value added tax; 2.
23. The procedure for the registration of value added tax payers; 2.
24. The procedure for the refunding of value added tax amounts deducted for the acquired long-term assets; 2.
25. The procedure for the refunding of value added tax to foreign diplomatic and consular missions and international organisations for the goods purchased (services obtained) in the Republic of Lithuania, as well as to the officers of such missions and organisations and their family members for the goods acquired for personal consumption; 2.
26. The procedure for the refunding of value added tax for goods (services) paid for with the funds of the loans provided by foreign countries, international organisations and foundations under technical and humanitarian assistance programs, as well as with the funds of the state-guaranteed loans to budgetary institutions; 2.
27. The procedure for the setting off of the value added tax levied on imported long-term assets for manufacturing purposes.
28. To consider the following being null and void: 3.
29. Resolution No. 280 “On Value Added Tax”, adopted by the Government of the Republic of Lithuania on 24 February 1995 (Records, 1995, No. 18-427); 3.
30. The list of the VAT exempted financial services provided by insurance, banking and other credit institutions which was approved by Resolution No. 331 “On Approval of the List of Goods and Services Exempted from Value Added Tax, and on Goods with the Production Cycle Exceeding Half a Year” adopted by the Government of the Republic of Lithuania on 8 March 1995 (Records, 1995, No. 22-515, No. 51-1255, No. 65-1621, No. 75-1757, No. 103-2309) 3.
31. Resolution No. 1048 “On Partial Amendment to Resolution No. 280 “On Value Added Tax”, adopted by the Government of the Republic of Lithuania on 24 February 1995”, adopted by the Government of the Republic of Lithuania on July 27 1995 (Records, 1995, No. 63-1593); 3.
32. Resolution No. 1588 “On Partial Amendment to Resolution No. 280 “On Value Added Tax”, adopted by the Government of the Republic of Lithuania on 24 February 1995”, adopted by the Government of the Republic of Lithuania on 21 December 1995 (Records, 1995, No. 106-2364). Prime Minister Mindaugas Stankevièius Minister of Finance Algimantas Kriþinauskas APPROVED by Resolution No. 546 of 9 May 1996 of the Government of the Republic of Lithuania Goods Exempted from Import VAT and Sales VAT in Domestic Market
33. Medicines (including veterinary medicines) in accordance with the list approved by the Government of the Republic of Lithuania.
34. Medical machinery, equipment and raw materials used for production of medicine and medicinal goods in accordance with the list approved by the Government of the Republic of Lithuania.
35. Coffins, temporary tombstones, wreaths, and flower-basket compositions.
36. Newspapers, magazines, and books.
37. Traditional fine-art works which are granted the status of such works by the Interagency Commission of the Traditional Fine-Arts’ Experts in accordance with the established procedure.
38. State-owned property which undergoes privatisation.
39. Coal, liquid and natural gas, oil, furnace fuel, crude oil, fire-wood, nuclear fuel (exempted until 1 January 1997).
40. Goods wearing the UNICEF mark, as follows: Code of Goods Description of Goods ex 48.10, ex 48.11 gift-wrapping paper ex 4871.30 boxes with note-paper, boxes with envelopes and letter-paper ex 4819.40 paper-bags for gifts ex 4820.10.30 note-books ex 4820.30 cases for documents ex 4820.50 albums for samples or collections ex 4909.00.10 printed or illustrated post-cards; printed cards with personal greetings or announcements or invitations, whether illustrated or not, whether including envelopes or not, whether with decorations or not; ex 49.10 printed calendars of any type, including calendar note-pads ex 61.09 T-shirts ex 6912.00 ceramic cups and sauces ex 6913.10 souvenir china sauces ex 95.02-95.03 dolls whether dressed or not, puzzles, lotto-type games (Hand in Hand, Mix and Match), sets for clipping and sticking, Christmas sets, games with magnet, other games, soft toys _________________________ * The above Codes of Goods are specified in accordance with the Combined Nomenclature of Goods of the European Economic Community. ____________________ APPROVED by Resolution No. 546 of 9 May 1996 of the Government of the Republic of Lithuania Services Exempted from Value Added Tax
41. Medical and dental services: 1.
42. medical and dental services rendered by state institutions of health care: 1.1.
43. doctor consultations; 1.1.
44. various treatment procedures; 1.1.
45. nursing of out-patients; 1.1.
46. laboratory tests; 1.1.
47. bacteriological analysis; 1.1.
48. x-ray examination; 1.1.
49. physiotherapy; 1.1.
50. functional examination; 1.1.
51. electro-cardiography examination; 1.1.
52. massage; 1.1.
53. otolaryngology; 1.1.
54. ophthalmology; 1.1.
55. obstetric and gynaecology; 1.1.
56. urology; 1.1.
57. balneology and hydropathy; 1.1.
58. curative physical training and mechanic-therapy; 1.1.
59. treatment for alcoholism and smoking; 1.1.
60. treatment according to unique methods; 1.1.
61. psycho-therapic aid; 1.1.
62. dental treatment and prosthetic dentistry (stomatology); 1.1.
63. hygienic activity (hygiene examination, physical and chemical, physical, and microbiological analysis); 1.1.
64. disinfection, deratization, and desinsection; 1.1.
65. sanatorium treatment; 1.1.
66. courses of sanatorium minimum and training of drivers to provide emergency medical aid to road accident victims; 1.1.
67. various qualification-improving training courses for medical staff; 1.1.
68. repairs of medical equipment; 1.
69. Medical services rendered by state institutions of veterinary care;
70. Social services rendered by kindergartens and nurseries, homes for the elderly and disabled.
71. Educational, scientific and studying services as well as non-commercial cultural services rendered by institutions of education, science and studies registered in accordance with the regulations established by the Government of the Republic of Lithuania, as follows: 3.
72. Educational, scientific and studying services rendered by institutions of education, science and studies: 3.1.
73. the teaching and education as well as the qualification-improving training and retraining of children, young people and adults in the educational institutions which were registered in accordance with the established procedure and in the institutions which were granted licences by the Ministry of Education and Science or permits by the Municipalities approving their activities, irrespective of their subordination or type of activities; 3.1.
74. services rendered by the educational institutions and aimed at organising the advancing, teaching, educating, qualification-improving training and retraining of children, young people and adults; 3.1.
75. scientific and studying services rendered by institutions of science and studies as well as scientific projects supported by scientific and studying foundations: 3.1.3.
76. scientific services, including joint-projects with participation of foreign institutions, characterised by any of the following features: research with the purpose of acquiring new data on the object under examination; application of certain knowledge in creation of a new material, equipment, system or method or in regulation of the processes or in their improvement; 3.1.3.
77. studying services related to acquisition of the university education, to training of scholars, and to qualification-improving training and retraining of professionals; 3.
78. Non-commercial cultural services: 3.2.
79. visits to museums; 3.2.
80. visits to all types of art exhibitions; 3.2.
81. visits to folklore art exhibitions; 3.2.
82. visits to the zoo; 3.2.
83. stocking of museum articles; 3.2.
84. bibliographic and informative services of libraries; 3.2.
85. copying of the documents from the library stock; 3.2.
86. attendance of circus performances and plays; 3.2.
87. attendance of the traditional-theatre performances and plays, except for special-occasion theatrical events: satire and humour, shows, variety entertainment, revue; 3.2.
88. attendance of concerts organised by state or municipal cultural institutions, non-profit and public cultural organisations; 3.2.
89. attendance of events promoting customs and traditions (holidays, folklore parties, public events); 3.2.
90. services of cultural education and artistic development (studios, clubs, etc.); 3.2.
91. attendance of events organised by cultural and educational institutions for young people (dances, discos, entertainment); 3.2.
92. production, subtitling and dubbing of Lithuanian state-budget sponsored films; 3.2.
93. rental and screening of Lithuanian-made films; 3.2.
94. rental and screening of films for children.
95. Services of schedule passenger transport on regular routes prescribed by the Ministry of Transport and the Municipalities.
96. Postal services (save for parcels’ delivery and telecommunication services as well as the postal stamps and envelopes for collecting): 5.
97. postal deliveries: 5.1.
98. letters; 5.1.
99. postcards; 5.1.
100. publications; 5.1.
101. small packages; 5.1.
102. money orders (including pensions); 5.
103. other postal services: 5.2.
104. cash on delivery service; 5.2.
105. notification of postal delivery; 5.2.
106. acceptance of rent and charges for electricity, telephone etc. municipal services registered in the general book of settlement; 5.2.
107. delivery of value-stated letters home; 5.2.
108. changed-address delivery and redelivery; 5.2.
109. storing of postal deliveries; 5.2.
110. packing services for parcels, small packages and publications; 5.2.
111. use of PO boxes; 5.2.
112. issuance of long-term warrants for receipt of postal deliveries; 5.2.
113. postal delivery or acceptance at home; 5.2.
114. services rendered at home; 5.2.
115. acceptance of taxes, rents or charges at home; 5.
116. Subscription-acceptance, treatment, expedition, transportation, delivery, change of address, and subscription-cancellation for periodicals; 5.
117. International express post deliveries - letters; 5.
118. Governmental and special post deliveries - letters etc.;
119. Financial services of insurance, banking and credit institutions, turnover of securities and lotteries: 6.
120. Financial services of insurance, banking and credit institutions: 6.1.
121. instalments received under any type of insurance or reinsurance; 6.1.
122. insurance premiums, insurance amounts, insurance subsidies, or insurance pensions under insurance or reinsurance agreements; 6.1.
123. acceptance of deposits or other re-payable funds into accounts opened for the customers, and management of the accounts; 6.1.
124. providing and taking of loans; 6.1.
125. issuance of monetary guarantees and other financial security obligations; 6.1.
126. issuance of payment instruments (cheques, letters of credit, promissory notes etc.) and execution of operations involving them; 6.1.
127. execution of operations involving securities (shares, bonds etc.); 6.1.
128. execution of operations involving foreign currency; 6.1.
129. issuance and management of crediting monetary instruments; 6.1.
130. execution of factoria operations; 6.1.
131. services of settlements and their clearing.
132. Funeral services: 7.
133. official registration of funeral documentation; 7.
134. transportation of the coffin, burial accessories and participants of the funeral; 7.
135. execution of funeral ceremonies; 7.
136. rental of funeral carriages; 7.
137. decoration of the coffin; 7.
138. grave digging and covering with earth; 7.
139. putting up of temporary tombstones; 7.
140. rental of burial accessories; 7.
141. cremation services; 7.
142. memorial announcements related to paying of honour to the dead (announcements of the death, obituaries, sympathy notices, memorial epitaphs).
143. Printing, publication, and circulation of newspapers, magazines, and books.
144. Services and actions charged by stamp duty, also taxes included into the special accounts opened in the state-budget and into the privatisation funds.
145. Works and services performed against payment from donated funds.
146. Lease of dwelling apartments and houses for a period exceeding two months.
147. Land lease.
148. Services rendered by agricultural partnerships and agricultural cooperatives for their members (exempted until 1 January 1997).
149. Medical services rendered by private health care and veterinary care institutions (exempted until 1 January 1997).
150. Country-entering tourist services rendered by tourist companies under an order or a contract and paid for by foreign persons.
151. Charges for sea-port, flight-guiding and air-navigation services, also local charges prescribed by the municipal agencies and included into non-budgetary funds.
152. Construction, renovation, heat-insulation and design of dwelling houses, including construction of engineering networks and clearing of the site, when the funding comes from the Lithuanian state-budget or municipal budgets, state-provided soft credits or special state funds.
153. Restoration* and preservation** of movable and immovable cultural values recorded on the lists of the state-protected cultural values, when the funding comes from the Lithuanian state-budget or municipal budgets. _____________________ * Restoration comprises a series of measures (of examination and repairs) which ensure the preservation and revelation of the historic and architectural and artistic view through removal of the layers or attachments or additions etc. in accordance with the historic, artistic-research, architectural, archaeological, and technical examination, and through motivated restoration of the destroyed elements; drafting of projects for restoration and regeneration. ** Conservation comprises a series of measures (of examination, design, and repairs, including emergency-prevention measures) which preserve the contents and volume of the historically-arranged cultural value, protect the authentic values against further destruction, fortify and protect parts of the structure through restoration of certain elements, however, without change of the historically-arranged view. _________________ APPROVED by Resolution No. 546 of 9 May 1996 of the Government of the Republic of Lithuania Goods Made by Producers of the Republic of Lithuania which are Taxable Until 1 January 1997 by Temporary 9 per cent Rate of Value Added Tax
154. Combined animal feed.
155. Fish and fish products.
156. Agricultural products* (save for predatory fine-fur animals, coypus and their fur).
157. Food stuffs made from agricultural products: 4.
158. bread and bread-products (rye-bread, wheat-bread, piece products of pie, dietary bread and pie, rolls and biscuits); 4.
159. flour, cereals, pasta; 4.
160. meat (including poultry), meat flour, food lard, semi-ready meat products, sausage, hot-dog sausage, ravioli, sub-products, smoked meat products, canned meat; 4.
161. milk and dairy products; 4.
162. baby food: vegetable, fruit, and berry juice and mash; 4.
163. sugar, honey and other bee products; 4.
164. fruit, berry, vegetables, potatoes; 4.
165. eggs.
166. Self-produced dishes or products (save for confectionery) made by public catering institutions, provided they contain over 50 per cent of such agricultural products, fish, or food stuffs listed in article 4 above which have been made by the producers of the Republic of Lithuania. _______________________ * The agricultural products made by the producers of the Republic of Lithuania and taxable by 9 per cent rate VAT shall include such products of horticulture (including the products of open- and enclosed-soil vegetable-gardening and floriculture, and gardening), cattle-rearing (including the horse-rearing products and pure-bred cattle), apiculture, poultry-farming, fur-farming, and pool pisciculture which have been produced by the primary producers; as well as the following products which have been processed by the producers themselves: grape snails, earthworms, concentrated biological fertilisers, biological plant-protection substances and cultured mushrooms (field mushroom and pleurotus ostreatus). _________________ APPROVED by Resolution No.546 of 9 May 1996 of the Government of the Republic of Lithuania On the Procedure of Registration of Value-Added Tax Payers Compulsory Registration of Value-Added Tax Payers
167. The value added tax (hereinafter referred to as VAT) shall be paid by legal persons, enterprises without the rights of a legal person, sub-units of foreign economic entities operating in the Republic of Lithuania, and natural persons, whose annual (throughout the preceding 12 months) proceeds from the sale of goods or rendering of services (hereinafter referred to as sales proceeds)are in excess of 50 thousand Litas, excluding the proceeds from the sale of long-term assets used longer than for one year, shall be the payers VAT.
168. Persons whose annual (over the preceding 12 months) sales proceeds amount to not less than 5 thousand Litas and who expect that their income over the said period will be in excess of 50 thousand Litas, must register with the local State Tax Inspectorates as the payers of VAT. The said persons should submit to the local State Tax Inspectorate requests (filed in accordance with the form established by the Ministry of Finance) to register them as VAT payers at least 15 days before the start of the month when the income is expected to exceed 50 thousand Litas. Natural persons must register as VAT payers if the total of their annual (over the preceding 12 months) employment-non-related income from sales of assets (excluding revenues from assets owned by them when a single item of certain kind, irrespective of its value, was sold over the designated period) and other income is in excess of 50 thousand Litas.
169. Local State Tax Inspectorates upon receipt of requests of persons to register them as VAT payers, and being certain that correct data is indicated in their requests, shall issue to them the registration certificates of VAT payers (in accordance with the form established by the Ministry of Finance) not later than in the period of 10 days.
170. Persons upon receipt of VAT payer registration certificates become VAT payers starting with 1st day of the month following the date of issue of a certificate. Those persons are issued the VAT registration code and they are entitled to indicate VAT in their invoices and deduct the sum of VAT for goods bought and services obtained from the computed sum of VAT due for goods sold (services rendered). Persons upon submission of their applications to register them as VAT payers on the month when their sales proceeds exceeds 50 thousand Litas, shall compute and pay the Tax into the budget for the month on which their income exceeded the designated amount at a rate of 15.25 (8.26)% of the value of goods sold (services rendered) and shall not have the right to indicate this tax in their invoices as well as to deduct the VAT paid for goods bought (services obtained) from the computed sum of VAT due for goods sold (services rendered). They shall acquire such rights only from the 1 day of the month following issue of a VAT payer registration certificate.
171. Persons who fail to register as Value-Added Tax Payers in due time shall not be released from the VAT.
172. Persons receiving proceeds exclusively from the sale of non-taxable goods (rendering of services) shall not be obliged to register as VAT payers with local State Tax Inspectorates. Voluntary Registration of VAT payers
173. Persons whose annual (over the preceding 12 months) sales proceeds amount to the sum from 5 to 50 thousand Litas excluding the proceeds from the sale long-term assets used for more than one year shall be entitled to be VAT payers if they wish so. Said persons shall submit to local State Tax Inspectorates the applications to register them as payers of Value-Added Tax (according to the application form established by the Ministry of Finance). The said inspectorates upon receipt of such applications and being confident of the correctness of the data stated in the applications shall issue the registration certificate of VAT payer within 10 days from the submission of said applications. Thereby, the said persons shall become VAT payers from the 1 day of the month following the date of issuance of certificate. Registration of New Enterprises
174. Enterprises, institutions and other organisations which starting from the date of their registration have been performing activities provided for by the Republic of Lithuania Enterprise Law or other laws, their articles of association, memorandum of association or other documents of association, however, did not have sales proceeds or other type of income, shall also be considered newly established enterprises, institutions and organisations. The above provisions shall be applicable only in cases of registration of VAT payers.
175. Newly established enterprises, institutions and natural persons who expect that their annual (calculating over the period starting with the first date indicated in the application of a VAT payer of selling of goods (rendering of services) on which VAT is charged) proceeds from goods sold and services rendered shall make up and exceed 50 thousand Litas, may register as VAT payers. The local State Tax Inspectorates upon receipt of such applications and being confident of the correctness of the data stated in the applications must issue the registration certificate of a VAT payer within 10 days from the submission of said applications. The said enterprises, institutions, organisations and natural persons upon the receipt of a VAT payer registration certificate, shall become the VAT payers starting with 1 day of the month following the date of submission of their applications. Unregistered persons
176. Persons whose annual (over the preceding 12 months) sales proceeds do not exceed 50 thousand Litas and who are not registered as VAT payers, shall not have the right to charge this tax on their goods (services); the charged VAT shall be paid by the said persons to the budget in the period of 30 days following the date of sale of goods (rendering of services). These persons shall not have the right to deduct the VAT on goods purchased (services obtained) from the computed sum of VAT due for goods sold (services rendered).
177. Persons, who are not registered as VAT payers and whose annual sales proceeds (over the preceding 12 months) exceed 50 thousand Litas, shall compute VAT at a rate of 15.25 (8.26) per cent of the value of goods sold (services rendered) starting with the month on which their sales proceeds exceeded the amount of 50 thousand Litas, and have no right to indicate VAT in their invoices or deduct VAT for goods bought (services obtained) from the computed sum of VAT for goods sold (services rendered).
178. Persons who are not registered as VAT payers and whose annual (over the preceding 12 months) sales proceeds from production exported or sold on the domestic market exceeded 50 thousand Litas, shall compute and pay VAT into the budget only for the part of production sold on the domestic market which is subject to VAT, but they shall not have the right to deduct VAT for goods bought (services obtained). Removal from the Register of the Value-Added Tax Payers
179. Persons, who have ceased to perform their commercial activities, or were registered voluntarily as VAT payers and no longer wish to be the payers of Value-Added Tax, and if their annual (over the preceding 12 months) sales proceeds do not exceed 50 thousand Litas, may be removed from the register of the Value-Added Tax payers upon submission of the applications to local State Tax Inspectorates (according to the form established by the Ministry of Finance).
180. In cases when the deducted sum of VAT exceeds the sum of VAT on sales of goods (services rendered) throughout the three successive periods during which VAT is paid, and this difference occurs to reasons other than those specified in Paragraph 1 of Article 17 of the Law on Value-Added Tax of the Republic of Lithuania, local State Tax Inspectorate must examine VAT payer and upon establishment of violations, may remove the VAT payer from the register of VAT payers for the period of 12 months, thereby terminating further set off of the difference that occurred.
181. Upon removal of a VAT payer from the register of VAT payers the following shall be deducted into the budget: 15.
182. the deducted VAT sum for goods (services) which were not used to produce or sell VAT taxable goods (render services); 15.
183. the deducted VAT sum for long-term assets the deprciation of which has not expired completely. Value-Added Tax Payer’s Code The Value-Added Tax payer’s code for legal persons, enterprises without the rights of a legal person, and sub-units of foreign economic entities, operating in the Republic of Lithuania, shall be comprised of 9 decimal numbers, arranged in the following order: X X X X X X X X X 1 2 3 4 5 6 7 8 9, reading 1-7 code of an enterprise, institution or an organisation in the enterprise register; 8 index of the VAT (‘1’); 9 control number of the VAT code.
184. The VAT code for natural payers shall be comprised of 13 decimal numbers arranged in the following order: X X X X X X X X X X X X X 1 2 3 4 5 6 7 8 9 10 11 12 13, reading 1-11 personal code in the register of the residents of the Republic of Lithuania; 12 index of VAT (‘1’); 13 control number of the VAT code. _______________ APPROVED by Resolution No. 546 of 9 May 1996 of the Government of the Republic of Lithuania Procedure for Refunding of Value Added Tax Amounts Deducted for Acquired Long-term Assets In the event of a change in the purpose of the long-term assets in respect of which the VAT paid has been deducted from the amount of the VAT computed on the goods sold (or services rendered) (i.e. in the event of sale without a VAT of the long-term assets used by a company for over a year, or in the event of launching the production of VAT-exempt goods (rendering services) on the basis of the long-term assets, or in the event of liquidation of the company or its removal from the register of VAT-payers), the deducted amount of VAT for the said long-term assets shall be adjusted, i.e. the respective part of the deduction must be refunded to the budget. The balance between the total amount of the VAT deduction received, and the amount of VAT on purchase covering the period during which the long-term assets from their purchase date till their full depreciation were used for manufacturing of VAT-taxable goods, shall be refunded to the budget. A computation of the VAT amount subject to refunding shall follow a stipulation that the period of depraciation shall not exceed 10 years in respect of a real estate and 5 years in respect of any other long-term assets. For example: A company purchased a certain long-term assets in December and deducted the VAT amounting to Lt
185. These assets should have reached full depreciation within 4 years, however, in June 1994 their purpose was changed (the long-term assets were used for manufacturing of VAT-exempt goods (rendering services), or were sold VAT exclusive, or the Company itself was liquidated or removed from the register of VAT-payers), and the assets were no longer used for manufacturing of VAT-taxable goods (rendering services). The Company shall pay (refund) the received VAT deduction amounting to LT 625 (1000 - (1000 : 4 : 12 x 18) where 18 is the number of months composing a period during which the assets were used for manufacturing of VAT-taxable goods (rendering services). In the event of a change of the purpose of long-term assets or in the event of their sale VAT exclusive, the computed refundable VAT amount shall be refunded into the budget within the established deadlines for VAT payment, after the amount is included into VAT statement for the respective accounting month during which the assets were sold or manufacturing of VAT-exempt goods (rendering services) was launched. In the event of liquidation of the company or its removal from the register of VAT-payers, the computed VAT amount shall be refunded to the budget within 30 days after the date of the removal of an enterprpise from the above-mentioned register. _______________ APPROVED by Resolution No. 546 of 9 May 1996 of the Government of the Republic of Lithuania Procedure for Refunding of Value Added Tax to Foreign Diplomatic and Consular Missions and International Organisation for Goods Purchased (Services Obtained) in the Republic of Lithuania as well as to Officials of these Missions and Organisations and their Family Members for Goods Purchased in the Republic of Lithuania for Personal Consumption
186. The value added tax (hereinafter “VAT”) shall be refunded on parity basis to foreign diplomatic and consular missions and international organisations for the goods purchased (or services obtained) in the Republic of Lithuania for the purpose of the official activities of the mission, as well as to officials of these missions and organisations and their family members for the goods purchased in the Republic of Lithuania for personal consumption, in accordance with the list of the goods purchased (or services obtained) in respect of which value added tax shall be refunded to the diplomatic and consular missions and international organisations as well as the officials of these missions and their family members as attached hereto. VAT shall only be refunded against paid invoices (bills) each stating an amount of at least Lt 800 including VAT. The VAT paid for the goods purchased (or services obtained) which are included in Paragraphs 8, 11 or 12 of the aforementioned List shall be refunded irrespective of the amount. VAT shall be refunded to the officials of diplomatic and consular missions and international organisations and their family members, provided the respective foreign states refund the same taxes to the officials of diplomatic and consular missions of the Republic of Lithuania and their family members, and the agreements between the respective international organisations and the Republic of Lithuania provide for an exemption from VAT or corresponding taxes or for a refunding of such taxes in accordance with the established procedure.
187. The persons mentioned in Paragraph 1 above shall pay the full price for all goods purchased (or services obtained), including VAT.
188. On request of the persons mentioned in Paragraph 1 above, a company, institution or organisation shall issue in respect of the goods sold (or services rendered) an invoice filled in according to the mandatory requisites prescribed by Article 10 of the Law on the Accounting Principles of the Republic of Lithuania and indicating the VAT amount.
189. Upon expiration of a quarter of a year, foreign diplomatic and consular missions and international organisations shall make the list of all goods purchased (or services obtained) during the respective quarter in an appropriate form and shall submit this form together with the invoice and the documents confirming payment for the goods (or services) as mentioned in Paragraph 3 hereof to the State and Diplomatic Protocol Department of the Ministry of Foreign Affairs. Copies of the invoices and the documents confirming payment for the goods (or services) when certified in accordance with the established procedure may be submitted instead.
190. After verification and after certification by signature of the Director of the State and Diplomatic Protocol Department of the Ministry of Foreign Affairs and by seal of the said Ministry, the lists of the goods purchased (or services rendered) together with the invoices and the documents confirming payment for the goods (or services) shall be forwarded by the said Department to the Vilnius city State Tax Inspectorate.
191. Upon receipt of the documents mentioned in Paragraph 5 hereof, the Vilnius City State Tax Inspectorate must within 20 days verify the said documents and transfer the amounts for the VAT subject to compensation into the accounts indicated by the respective foreign diplomatic or consular missions or international organisations in the banks of Lithuania. It shall be recorded by a special entry in the documents of the applicants, and a copy of said documents shall be forwarded to the State and Diplomatic Protocol Department of the Ministry of Foreign Affairs which shall further inform the applicants. ________________ Annex to the Procedure for Refunding of Value Added Tax to Foreign Diplomatic and Consular Missions and International Organisation for Goods Purchased (Services Obtained) in the Republic of Lithuania as well as to Officials of these Missions and Organisations and their Family Members for Goods Purchased in the Republic of Lithuania for Personal Consumption Goods Purchased (Or Services Obtained) in Respect of which Value Added Tax shall be Refunded to the Diplomatic and Consular Missions and International Organisations as well as the Officials of these Missions and their Family Members
192. Vehicles: 1.
193. cars of any kind and their spare-parts; 1.
194. motor-cycles, motor-bikes, bikes.
195. Radio sets, acoustic equipment, TV sets, audio- and video-recorders, microphones, antennas.
196. Household equipment (washing and drying machines, refrigerators, microwave ovens, freezers, coffee-makers, sewing machines etc.).
197. Furniture, interior accessories (mirrors, lights).
198. Concert-pianos and pianos.
199. Household accessories and articles (utensils, table-silver etc.).
200. Textile articles (curtains, table-cloth, bed-covers, towels, bed-linen).
201. Fuel for vehicles.
202. Equipment and machinery required for the activities of the mission (computers, copying machines, communication equipment, type-writer, security systems, calculating equipment).
203. Reconstruction and repairs of and building materials for the mission premises (under bilateral parity only).
204. Communication services.
205. Charges for the rent and heating of premises, electricity, water supply and other municipal services.
206. Copying paper, printing of business cards, booklets or invitations.
207. Office necessities. Note. Paragraphs 9 through 14 shall only apply to the mission itself and the residence of the head of the mission. ________________ APPROVED by Resolution No. 546 of 9 May 1996 of the Government of the Republic of Lithuania The Procedure of Reimbursement of Value Added Tax for Goods (Services) Paid for According to Technical and Humanitarian Assistance Programmes from the Credit Resources of Foreign States, International Organisations and Foundations and from those Issued to the State, as well as from the Credit Resources Issued to Budgetary Institutions and Guaranteed by the State
208. The value added tax (hereinafter referred to as VAT) for imported goods paid for according to technical and humanitarian assistance programmes from credit resources issued by foreign states, international organisations and foundations and those issued to the state, as well as from the credit resources issued to budgetary institutions and guaranteed by the state, shall be annulled by the customs office which makes an official registration of customs procedure for import for domestic use (hereinafter referred to as customs), after it has received a certificate of Format 1 of the State Tax Inspectorate under the Ministry of Finance (attached). The certificate shall be issued after the official registration of import declaration of goods. The VAT paid by the Lithuanian economic entities for imported goods (services) and those procured in the Republic of Lithuania, paid for from the funds specified in paragraph 1 of this item, shall be reimbursed to the payer within ten days by the local (in his/her location) state tax inspectorate, upon producing the indicated certificate of the State Tax Inspectorate under the Ministry of Finance. The State Tax Inspectorate under the Ministry of Finance shall issue the payer who has produced the necessary information, with two copies of the certificate, one of which is to be retained by the payer and another one presented to the customs (if the VAT is annulled by the customs) or to the local state tax inspectorate (if it reimburses the paid VAT).
209. For the goods (services) paid for according to technical and humanitarian assistance programmes from the credit resources issued by foreign states, international organisations and foundations and those issued to the state, as well as from the credit resources issued to budgetary institutions and guaranteed by the state, when the goods (services) bought in Lithuania for Lithuanian economic entities are paid for directly by international organisations, foundations or their authorised representatives located abroad, or by economic entities of foreign countries that have at their disposal credit resources issued to budgetary institutions and guaranteed by the state, the VAT shall be reimbursed to the international organisations, foundations or their authorised representatives located abroad, or to the economic entities of foreign countries that have at their disposal credit resources issued to budgetary institutions and guaranteed by the state. The Lithuanian economic entity, upon receiving assistance (loan) from these organisations, or a budgetary institution which has been allocated a loan guaranteed by the state, shall present to the State Tax Inspection within the Ministry of Finance a confirmation that the assistance (loan) has been received from the funds of these organisations, foundations or foreign economic entities, as well as purchase documents confirming the paid VAT and copies of invoices for the received goods, shall indicate the exact name, address, account number and the requisites of the bank, where the reimbursement for the paid VAT is to be transferred, of the international organisation, foundation or their authorised representative who had paid for the goods (services), or of the economic entity of a foreign country which has at its disposal credit resources issued to budgetary institutions and guaranteed by the state. The State Tax Inspectorate under the Ministry of Finance, upon examining the submitted material, shall fill in a certificate of Format 2 (attached). It is necessary to fill in two copies of the certificate one of which shall be submitted to the Treasury Department of the Ministry of Finance . Upon receiving the certificate, the Treasury Department shall within ten days transfer to the foreign economic entity the sum of money indicated therein. The price for bank services shall be reduced in accordance with the sum of money that is being reimbursed to the foreign economic entity. The rates for bank services shall not exceed the established international standards.
210. In cases wherein an international agreement has been signed between the country rendering assistance and the Republic of Lithuania and ratified by the Seimas of the Republic of Lithuania, and the agreement stipulates that the credit resources of foreign states, international organisations and funds and those issued to the state cannot be used for the payment of the VAT, the State Tax Inspectorate under the Ministry of Finance shall annul the calculated VAT on sales of the procured goods (services) imposed on the Lithuanian economic entities and to be paid from the above funds, and issue to the seller of goods (services) a certificate of Format 3 (attached).
211. The Lithuanian economic entity that receives assistance according to technical and humanitarian assistance programmes or procures goods (services) from the credit resources granted to the state, shall approach the State Tax Inspectorate under the Ministry of Finance and present: 4.
212. copies of documents confirming that the assistance (loan) has been received from the above mentioned resources; 4.
213. a confirmation that a tender for the execution of the programme has been won by the Lithuanian economic entity selling goods or services (except the sub-contractors of this economic entity); 4.
214. a copy of the agreement between the giver of the assistance (loan) and the programme executor; 4.
215. copies of invoices drawn up for the procured goods (services).
216. The Sate Tax Inspectorate under the Ministry of Finance, having examined the submitted material, shall issue the person who receives assistance with two copies of the certificate on the annulment of the VAT, one of which is to be retained by the receiver and another one submitted to the seller of goods (services). The latter, upon receiving the certificate, shall inscribe in the invoice (on all copies), near the calculated VAT sum, that it has been annulled and indicate the number and date of the received certificate (the head of the company and the chief accountant (financier) shall sign near the inscription, indicating their names and forenames). Sellers of goods (services) shall not include into the sales VAT the sum annulled by the above certificates, and instead indicate the VAT on purchases of the goods in the VAT declaration according to the established procedure. Receivers of goods (services) shall not include the VAT sums annulled by the above certificates into the VAT reports. ______________________ Form 1 State Tax Inspectorate under the Ministry of Finance RECEIVED by:____________________________ (name of the local state tax inspectorate or the customs office) on ____ th _______________ 199__ (signature of the Certificate accepting official) [seal] C E R T I F I C A T E No._______ of _____th _________________ 199__ ___________________________________________________________ (name of the local state tax inspectorate or the customs office) ___________________________________________________________ shall refund or cancel (delete the unnecessary) to ______________ ___________________________________________________________ (full name, code and domicile of the company) the Value Added Tax of Lt _______________ ___________________ (amount in figures) (amount in words) ___________________________________________________________ levied on ___________________________________________________ (description of goods or services) ___________________________________________________________ priced at Lt ___________ and paid for with _____________________ (describe the funds used ________________ and received from ___________________________ for the payment) (name of the supplier Head (Signature) (Full name) of the State Tax Inspectorate [Seal] under the Ministry of Finance The above goods (or services) received under ___________________ (import declaration or ___________________________________________________________ Invoice no. and date) Head (Signature) (Full name) Chief Accountant (Signature) (Full name) (Financier) of the Company [Seal] Form 2 State Tax Inspectorate under the Ministry of Finance C E R T I F I C A T E No._______ of _____th _________________ 199__ The Treasury Department of the Ministry of Finance shall be assigned to refund to ___________________________________________________ (name and domicile of the international organisation, ___________________________________________________________ foundation, or foreign economic entity which administers the funds ___________________________________________________________ of the loan provided to a budgetary authority) the Value Added Tax of ______________________________________ (amount in words) ___________________________________________________________ paid by purchase of goods (or services) from ____________________ (name and domicile of ___________________________________________________________, the Lithuanian economic entity which received the assistance) to the account No.________________ in __________________________ ___________________________________________________________ (name, code and domicile of the bank) The above goods (or services) received from ____________________ (name of the supplier) ________________________ under _____________________________ (Invoice no. and date) Head (Signature) (Full name) of the State Tax Inspectorate [Seal] under the Ministry of Finance _____________________ Form 3 State Tax Inspectorate under the Ministry of Finance C E R T I F I C A T E No._______ of _____th _________________ 199__ ___________________________________________________________ (full name, code and domicile of the company) shall be cancelled the Value Added Tax of Lt ___________________ (amount in figures) ___________________________________________________________ (amount in words) levied on __________________________________________________ (description of goods or services) under Invoice ______________________________________________ (no and date of the Invoice) sold (or rendered) to ________________________________________ (full name, code and domicile ___________________________________________________________ of the Company) in accordance with __________________________________________ (name of the technical assistance program) and paid for by _____________________________________________ (name of the foreign economic entity, country, ___________________________________________________________ international organisation, or foundation) Head (Signature) (Full name) of the State Tax Inspectorate [Seal] under the Ministry of Finance _____________________ Form Part I To:____________________ From: State Tax Inspectorate (Customs office) of ______________ city (region) C E R T I F I C A T E No. on Take-Over of the Control of Payment (Set off) of Import VAT during ___________________ 199__ The long-term assets for manufacturing purpose imported for production of taxable goods (the activities specified in Section _________________ of the Classification of the Economic Activities) No. Name and domicile of Importer Code of Importer No. and date of Import Declaration VAT amount computed and recorded in the Declaration Head (Signature) (Full name) of the State Tax Inspectorate [Seal] of ____________ city (region) ___ th ____________ 199 __ Part II The control over payment (set off) of the Import VAT of ___________________________________________________________ (amount in words) shall be delegated to the State Tax Inspectorate of ____________ city (region). Head of the Customs Office (Signature) (Full name) ___th ____________ 199 __ [Seal] _________________________ APPROVED by Resolution No. 546 of 9 May 1996 of the Government of the Republic of Lithuania Procedure of Setting Off the Value Added Tax Levied on Imported Long-Term Assets assigned for manufacturing purpose
217. On request of the company, the local state tax inspectorates may issue certificates (the required form enclosed) which testify to the take over of control by the said inspectorates over the payment (set off) of the import value added tax assessed by customs offices on the long-term assets assigned for manufacturing purpose and imported by companies for their own needs (and used for activities listed in the Classification of Economic Activities, Sections A, B, C, D, E, and F, and Section I - only for cargo trucks and towing vehicles manufactured in compliance with EURO-1, EURO-2, or EURO-3 standards and granted certificates by the manufacturer) with the total value (of an integral technological set or line or a-single-purpose equipment imported under a single contract) exceeding Litas 100
219. The aforementioned certificates shall only be issued against written applications to companies - VAT payers which are importing assets for the purpose of manufacturing VAT taxable goods (rendering services). The said applications shall indicate: 2.
220. the full name of the company and its code in the company register; 2.
221. the domicile of the company; 2.
222. the VAT-payer code; 2.
223. the description of the imported assets, their code in accordance with the Combined Nomenclature of Goods of the European Economic Community and the total value of the assets, as well as the numbers and execution dates of the import declarations.
224. The certificate issued by the local state tax inspectorate to a company (three copies of the certificate shall be filled in) shall indicate the data prescribed by Paragraphs 2.1 to 2.4 hereof as well as the Section in the Classification of Economic Activities which corresponds to the purpose of the assets (Part I of the certificate). Every import declaration shall be issued a separate certificate (three copies of it). The certificates issued by the tax inspectorate shall be recorded in a separate register. The respective company shall submit all three copies of the certificate to the customs office which executed the import customs clearance procedure.
225. The Customs office shall only fill in Part II of the submitted certificate, thus certifying the delegation of control over VAT payment (set off) to the local state tax inspectorate (depending on the registration place of the company), and prior to the 10th of the following month shall forward one copy to the said inspectorate, another copy to the respective company, and the third copy to its own files. Upon receipt of the certificate from the customs office, the local state tax inspectorate shall within 10 days thereof confirm to the customs office in writing on the acceptance of the delegated control over payment (set off) of the import VAT by the economic entity stated in the certificate. Upon receipt of the certificate from the customs office, the company may include the stated VAT amount into lines 21 and 26 of the VAT statement and may execute the set off of this tax.
226. Upon the decision of the head of the local state tax inspectorate, the company may receive a rejection to be granted such certificate in cases when the company: 5.
227. repeatedly fails to submit VAT statements; 5.
228. while filling in the VAT statements, reduces the VAT amount payable to the budget, or increases the VAT amounts refundable from the budget; 5.
229. pays the VAT to the budget later than required. _______________