Official Translation

Official Translation Official Translation Republic of Lithuania Law on Excise Duties 12 April 1994 No.I-429 (As amended by 9 December 1997 No. VIII-556) Vilnius Article

1. Objective of this Law This Law shall regulate the imposition of excise duty on certain goods. Article
2. The Payers of Excise Duties
3. Excise duties 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
4. In free economic zones the zone enterprises shall be exempt from excise duties.
5. Excise duties on oil products produced by the private company "Mažeikių nafta" shall be calculated, collected and paid by the stock company "Mažeikų nafta", irrespective of who the oil supplier is. Article
6. The Object of Excise Duty
7. The following products shall be subject to excise duty : 1) ethyl alcohol, undenatured, and alcoholic beverages, including beer; 2) smoking tobacco and tobacco products; 3) coffee, chocolate and food preparations containing cocoa; 4) jewellery, gold and silverware, excluding artificial jewellery and coins; 5) engine petrol, kerosene, jet fuel, gas oil (diesel fuel), heavy fuel oil; 6) luxury cars; 7) electricity; 8) publications of erotic and violent nature. 9) lubricants of all types.
8. Imports as the object of excise duty shall be non-Lithuanian goods specified in paragraph 1 hereof which create a debt to the customs under the Customs Code of the Republic of Lithuania (hereinafter referred to as the Customs Code). 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 duty and VAT; 2) of imports - the sum total of customs value of goods and customs duty thereon. Customs value of imports shall be calculated according to the procedure laid down in the Customs Code. Article
9. Taxable Goods
10. Excise duties shall be calculated on goods referred to in Article 3 of this Law, 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 Principles of Accounting; 2) imported goods - in the cases specified in the Customs Code upon creating a debt to the customs.
11. Excise duty is an element of the price of goods and thus it shall not be indicated in the invoices and payment documents. Article
12. Exemptions from Excise Duties
13. Excise duty shall not be imposed on: 1) goods imported as charity; 2) goods imported by natural persons (travellers), where the amount of imports does not exceed the amount to which the Government has granted exemption from import duty; 3) goods imported by diplomatic and consular missions of foreign states, also international organisations for the official activities, if exemption of said goods from excise duties is provided under agreements between the international organisations and the Republic of Lithuania; 4) postal parcels sent to the customs territory of the Republic of Lithuania, the weight whereof does not exceed 31.5 kg and the value whereof is not in excess of 400 LT; 5) imported goods exempt from import duty under the Customs Code; 6) unbottled alcoholic beverages and their raw material provided that they are imported for the production of alcoholic beverages by state-owned enterprises licenced to produce said beverages; 7) exports.
14. Moreover, excise duty 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 health care institutions for medical and pharmaceutical purposes; to enterprises producing veterinary medicines and to veterinary supply enterprises for veterinary purposes. Article
15. Refund of Excise Duties or Waver of Excise Duties Recovery
16. Excise duties paid for imports shall be refunded in the cases prescribed by the Customs Code.
17. Recovery of excise duties for imports shall be waved in the cases prescribed by the Customs Code. Article
18. Taxable Period The taxable period of excise duties (excluding excise duties on imports) shall be a calendar month at the expiry whereof the taxpayers must, by the 15th day of the following month, file an excise duty return with the local State Tax Inspectorate. Article
19. Excise Duty Payment Procedure
20. Excise duties on locally-manufactured goods must be paid into the budget before the 30th day of the following month.
21. The taxpayers whose average monthly amount of excise duties in the preceding month exceeded 50 000 LT shall pay excise duties: 1) by the 30th day of the month - for the first decade of the month; 2) by the 10th day of the next month - for the second decade of the month; 3) by the 20th day of the month - for the remaining part of the month.
22. Excise duties on imports shall be paid into the budget in accordance with the procedure established by the Government.
23. The Government may establish a different procedure and time period for the calculation and payment of excise duties on alcoholic beverages, tobacco products and oil products, manufactured in and imported into the Republic of Lithuania. Article
24. Recovery of Excise Duties
25. The payment of excise duties on goods (except for imports) shall be supervised by local State Tax Inspectorates which shall recover, in the manner prescribed by the Law on Tax Administration, the underpaid amounts of excise duties, also interest and penalties under the Law on Tax Administration.
26. The payment of excise duties on imports shall be supervised by the local customs which shall recover, in the manner established by the Customs Code, the underpaid amounts of excise duties and interest thereon for the current year and five preceding years. Article
27. Refund of Erroneously Paid (Recovered) Excise Duties Claims for the refund of erroneously paid (recovered) excise duties may be filed within a two-year period after the day of payment (recovery) of the excise duty. Erroneously paid (recovered) amounts of excise duties (including amounts recognised as refundable on the proposal of the local customs) shall be refunded by the local State Tax Inspectorates in accordance with the procedure established by the Law on Tax Administration. Article
28. Sanctions for Violations of Law
29. If the taxpayer defaults in the payment of excise duties, there shall be collected interest the amount whereof shall be calculated in the manner specified by the Law on Tax Administration. If the taxpayer fails to file a tax return or if excise duties shown in the return are understated, the local State Tax Inspectorate shall impose penalties according to the procedure established by the Law on Tax Administration.
30. In the event of failure to comply with the customs approved treatments established by the Customs Code which creates an import debt to the customs, default interest shall be calculated from the day the import debt to the customs is created. Article
31. Final Provisions The Government shall establish: 1) the procedure for the calculation and payment of excise duties; 2) list of taxable goods according to the established description and coding system of goods, and the excise duty rates; 3) the procedure for the assignment of cars to the category of luxury cars.
32. The Government shall, pursuant to Article 3 of this Law, establish, by 1 January 1997, the list of specific goods subject to excise duties and rates thereof. Beginning from 1997, the specific goods subject to excise duties and excise duty rates shall be approved by the Seimas of the Republic of Lithuania. Article
33. Entry into Force of the Law This Law shall enter into force as of 1 January
34. I promulgate this Law passed by the Seimas of the Republic of Lithuania PRESIDENT OF THE REPUBLIC ALGIRDAS BRAZAUSKAS