Official Translation

Official Translation Official Translation Republic of Lithuania Law on Excise Taxes 12 April 1994 No.I-429 (As amended by 30 April 1996) Vilnius Article

1. Objective of this Law This law shall regulate the imposition of excise tax on certain goods. Article
2. The Payers of Excise Taxes Excise taxes shall be paid into the budget by legal and natural persons as well as enterprises without the rights of a legal person, which are the manufactures and importers of goods specified in Article
3. Excise taxes on oil products produced by the stock company "Maþeikiø nafta", shall be calculated, collected and paid by the stock company "Maþeikø nafta", irrespective from whose oil these products are produced. If the rates of excise taxes change, the difference in excise taxes on balances of goods in wholesale and retail trade enterprises shall be paid by these enterprises in accordance with the procedure established by the Goverment of the Republic of Lithuania. Article
4. The Object of Excise Tax The following goods shall be subject to the excise tax : 1) ethyl alcohol, undenatured, and alcoholic beverages, including bear; 2) smoking tobacco and tobacco products; 3) coffee, chocolate and food preparations containing cocoa; 4) jewelry, gold and silverware, excluding artificial jewelry and coins; 5) engine petroleum, excluding aviation petroleum, Diesel fuel; 6) luxurious cars; 7) electricity; 8) publications of erotic and violent nature. 9) lubricants of all types. Article 4.Taxable Value The taxable value shall be: 1) of goods made in the Republic of Lithuania -- the selling price of goods exclusive of the excise tax and VAT; 2) of imports -- customs value of goods including customs duty; Article 5.Taxable Goods Excise taxes shall be calculated on goods referred to in Article 3 hereof, which are : 1) transferred from the warehouse of finished goods to another legal or natural person or an enterprise without the rights of a legal person to whom the right of disposal is assigned pursuant to the issued transfer documents. Such documents must contain mandatory requisites provided for in Article 10 of the Republic of Lithuania Law on the Accounting Principles; 2) imported goods - in accordnace with the procedure established for the calculation of import duties; Excise tax is an element of the price of goods and thus it is not indicated in the invoices and payment documents. Article
5. Exempmtions from Excise Taxes Excise tax shall not be imposed on: 1) import goods which are exempt from customs duty in accordance with the procedure set forth in Article 5 of the Republic of Lithuania Law on Customs Tariffs; 2) unbottled alcoholic beverages and their raw material provided they are imported by state-owned enterprises for the production of alcoholic beverages; 3) exports; 4) goods carried in transit through the customs territory of the Republic of Lithuania. Excise tax shall not be imposed on ethyl alcohol provided it is sold to : 1) the enterprises of the Republic of Lithuania for the production of vodka, liqueur, trauktine ( kind of brandy), wine, mead and vinegar; 2) pharmaceutical enterprises and medical institutions for medical and pharmaceutical purposes; enterprises producing veterinary medicines and to veterinary supply enterprises for veterinary purposes. Article
6. Tax Period The tax period of excise tax ( excluding excise taxes on imports) shall be a calendar month at the end of which the taxpayers must, by the 15th day of the following month, file an excise tax return with the local State Tax Inspectorate. Article
7. Payment Procedure Excise taxes on locally-manufactured goods must be paid into the budget before the 30th day of the following month. The taxpayers whose average monthly sum of excise taxes in the preceding month exceeded 50 000 LT shall pay excise taxes: by the 30th day of the month --for the first decade of the month; by the 10th day of the next month -- for the second decade of the month; by the 20th day of the month - -for the remaining part of the month. The excise tax on imports shall be paid into the budget in accordance with the procedure established by the Government of the Republic of Lithuania for the payment of taxes at the customs. The Government of the Republic of Lithuania may establish a different procedure for the calculation and payment of excise taxes on alcoholic beverages, tobacco products and oil products, manufactured in the Republic of Lithuania. Article 8 1 . Exaction of Excise Taxes The overdue sums of excise taxes, interest on overdue excise taxes, and penalties shall be exacted by the State Tax Inspectorates in accordance with the procedure established by the Republic of Lithuania Law on Tax Administration and the overdue sums of excise taxes and interest on overdue excise taxes shall be exacted by the customs from entrprises, offices and organisations without suit and from natural persons -in court. Article 8 2 . Refund of Overpaid (erroneously exacted) Excise Taxes Overpaid (erroneouly excated) excise taxes shall be refunded by the state institution authorised by the Government of the Republic of Lithuania according to the procedure established by the Republic of Lithuania Law on Tax Administration. (Amended 30 April 1996) Article
8. Sanctions for the Violation of this Law If the taxpayer has failed to make an excise tax return or excise taxes shown in the return are understated, the understated amount of the excise tax, late charges and interest on the overdue excise tax shall be excated according to the procedure established by the Republic of Lithuania Law on Tax Administration. Upon failure to pay excise taxes when due, an interest on the overdue excise tax shall be charged according to the procedure established by the Republic of Lithuania Law on Tax Administration. If customs procedures are not being complied with and imports customs declaration is not filed when due, the interest on the overdue excise tax shall be calculated from the day when this declaration had to be filed. (Amended 30 April 1996) Article
9. Final Provisions This Law comes into effect on 1 May
10. The Government of the Republic of Lithuania shall establish: 1) the procedure for the calculation and payment of excise taxes; 2) list of taxable goods according to the established description and coding system of goods, and the excise rates; 3) the procedure for the assignement of cars to the category of luxurious cars. The Government of the Republic of Lithuania pursuant to Article 3 hereof shall, by 1 January 1997, establish the list of specific goods subject to excise taxes and rates thereof. Beginning from 1997 the specific goods subject to excise taxes and excise rates shall be approved by the Seimas of the Republic of Lithuania. I promulgate this Law passed by the Seimas of the Republic of Lithuania PRESIDENT OF THE REPUBLIC ALGIRDAS BRAZAUSKAS