Government of the Republic of Lithuania

Government of the Republic of Lithuania Working document Government of the Republic of Lithuania Resolution No. 1377 Regarding the Documents Confirming the Fact of Exportation of Exported Alcoholic Beverages, Tobacco Products, Petroleum Products and Goods Specified on the List Compiled by the Ministry of Finance, which are Subject to Excise Duty 11 December 1997 Vilnius The Government of the Republic of Lithuania has resolved, pursuant to Articles 1 and 5 of the Law amending Articles 4, 5, 6, 16, 17, 19, 20, 23, 25, 29, 35, and 36 of the Law of the Republic of Lithuania on Value Added Tax: To establish that:

1. Revised version of the Government of the Republic of Lithuania Resolution No.58 of 19 January 1998 (from January 1998) All exporters - payers of the value added tax (hereinafter referred to as exporters; exporters - VAT payers), who have exported abroad or to the duty-free shops goods that are subject to excise duty - alcoholic beverages, tobacco products, petroleum products, and goods that are on the list compiled by the Ministry of Finance - must have documents certifying that the goods have been recognised as exported goods according to the procedure laid down by the Customs Department and bank documents certifying that full settlement has been effected for exported goods by remitting funds to the exporter’s account. If the exporter of petroleum products is not in the position to present bank documents confirming the payment in the event of re-exportation of compensatory oil products manufactured from oil temporarily imported for processing, or in case the accounts with the supplier for the supplied raw material are settled not through the bank but by providing instead of payment petroleum products manufactured from the supplied oil, on which excise duty is charged, he must have documents certifying that the goods have been recognised as exported according to the procedure established by the Customs Department.
2. In addition to the documents specified in paragraph 1 hereof, exporters - VAT payers who have exported alcoholic beverages, tobacco products and goods included in the list compiled by the Ministry of Finance, on which excise duty is charged, must also have a consignment note marked by the customs of the Republic of Lithuania and foreign states, to the effect that the cargo has been introduced or departed, and in case of export through the sea ports of the Republic of Lithuania and foreign states - waybills marked by the customs of the Republic of Lithuania and bills of lading or copies of the above waybills or documents. If alcoholic beverages and tobacco products on which excise duty is payable have been exported to duty-free shops, the exporters - VAT payers must have the waybills marked by the customs of the Republic of Lithuania and by the duty-free shops, and a customs export declaration.
3. The exporters - VAT payers, who have exported by rail the goods on which excise duty is charged must have only the documents specified in paragraph 1 of this Resolution.
4. In other cases the exporters - VAT payers, who have exported petroleum products on which excise duty is charged, in addition to the documents specified in paragraph 1 of this Resolution must also have: 4.
5. copies of motor waybills marked by the customs of the Republic of Lithuania and the neighbouring foreign states, when the products have been exported by motor transport; 4.
6. copies of bills of lading, when the products have been exported through the sea ports of the Republic of Lithuania ; 4.
7. air or liner waybills, when the products are supplied as aircraft or ship supplies.
8. Revised version of the Government of the Republic of Lithuania Resolution No. 340 of 24 March 1998 (beginning from 28 March 1998) Only carriers entered in the list compiled by the Customs Department under the Ministry of Finance shall have the right to carry abroad by motor transport exported petroleum products (except for oils), alcoholic beverages (with the exception of beer), tobacco products and goods that are on the list drawn up by the Ministry of Finance, on which excise duty is charged, provided that the carriers have concluded contracts with the exporters of the above products. The right to carry abroad by motor transport exported oils (Combined Nomenclature codes 2710.0087.0 - 2710.0096.0, 2710.0098.9) and beer (Combined Nomenclature code 2203.00), on which excise duty is levied, shall be granted only to the exporters who carry the goods by their transport or carriers who are entered in the list compiled by the Customs Department under the Ministry of Finance and have concluded contracts with the exporters of the said goods. Included in the list of carriers shall be: 5.
9. carriers registered in the Republic of Lithuania who possess a registered and fully formed authorised capital amounting to not less than LTL 5 million and who have submitted to the Customs Department under the Ministry of Finance a documentary letter of credit for the amount of not less than LTL 5 million, issued by the banking institution registered in the Republic of Lithuania. 5.
10. carriers registered in foreign states, who have presented a documentary letter of credit for the amount of at least LTL 7 million, issued by the banking institution which is registered in the Republic of Lithuania and recognised in the manner established by the Bank of Lithuania as being capable of assuming an additional risk or banking institutions registered in a foreign state and having an at least a single-A rating given by the international rating agency.
11. Alcoholic beverages and tobacco products on which excise duty is charged may be carried to duty-free shops by motor transport only by the exporters of the said goods - VAT payers by their own transport or by the carriers specified in paragraph 5 of this Resolution.
12. The tax payer shall be refunded or credited the VAT when a refundable amount of the VAT is formed due to the export of alcoholic beverages, tobacco products, petroleum products and goods specified in the list of the Ministry of Finance and the tax payer request that the difference be refunded from the budget. Documents specified both in paragraph 1 and paragraph 2 (or 4) must be submitted with the request. In the event of carriage by road transport of the exported alcoholic beverages, tobacco products, petroleum products and goods specified in the list of the Ministry of Finance, on which excise duty is not payable, the exporter must additionally present a copy of the contract with the carrier who under paragraph 5 of this Resolution has the right to carry the cargo by motor transport.
13. If the exporter of alcoholic beverages, tobacco products, petroleum products and goods specified in the list of the Ministry of Finance, on which excise duty is charged, has the documents specified in paragraph 1 of this Resolution, but is unable to present all documents specified in paragraph 2 (or 4) (or is late in presenting them), he shall have the right to appeal to the territorial tax inspectorate requesting to refund or credit the VAT difference which resulted from the export of alcoholic beverages, tobacco products, petroleum products, and goods included in the list of the Ministry of Finance, all of which are subject to excise duty; however, the exporter must additionally present a written promise (documentary credit) of the issuer of the L/C (the bank) concerning the appropriate refundable amount of the VAT.
14. Revised version of the Government of the Republic of Lithuania Resolution No. 1460 of 21 December 1998 (beginning from 25 December 1998) The exporter must have all the documents specified in paragraphs 1 and 2 (or 4) of this Resolution for a 3-month period following the day of dispatch abroad or to a duty-free shop of alcoholic beverages, tobacco products, petroleum products and goods included in the list of the Ministry of Finance, on which excise duty is charged. In case extremely unfavourable circumstances develop, the Minister of Finance shall have the right to extend for up to 6 months, on the recommendation of the Minister of Economy and/or Minister of Agriculture, the period for filing documents guaranteeing payment, issued by the bank.
15. Revised version of the Government of the Republic of Lithuania Resolution No. 191of 23 February 1999 (beginning from 27 February 1999) If, upon the expiry of the time period specified in paragraph 9 of this Resolution, the exporters are not in possession of the documents specified in paragraphs 1 and 2 (or 4) of this Resolution, confirming exportation of alcoholic beverages, tobacco products, petroleum products and goods included in the list of the Ministry of Finance, on which excise duty is levied, and they have not been granted an extension, in the established manner, of the time period prescribed for the presentation of the documents guaranteeing payment, issued by the bank, the exporter shall have to pay for the goods the excise duty of the established amount and the VAT of 18%. In case the difference of the VAT, resulting from export has been refunded or credited on the basis of the bank L/C and it turns out that after the expiry of the time period specified in paragraph 9 the exporter is not in possession of all the required documents and he has not been granted an extension of the time period prescribed for the presentation of the bank documents guaranteeing payment, the refunded or credited amount of the VAT shall be recovered from the exporter or the guarantor, unless the exporter discharges his obligation in full or in part. If the exporter presents the documents specified in paragraphs 1 and 2 (or 4) later (but not later than within 12 months after the date of dispatch abroad of the above-specified goods), the paid amounts of tax shall be credited to the regular tax amounts due. The above provision of this paragraph concerning the crediting of the paid taxes to the regular tax amounts due shall also be applicable in cases where the taxes have been paid for the goods for which the 3-month period from the dispatch abroad has expired before the coming into effect of the Resolution of the Government of the Republic of Lithuania No. 835 of 7 July 1998 “Regarding Partial Amendment of the Resolution of the Government of the Republic of Lithuania No. 1377 of 11 December 1997 “Regarding the Documents Confirming the Fact of Export of the Exported Alcoholic Beverages, Tobacco Products, Petroleum Products and Goods Included in the List of the Ministry of Finance, on which Excise Duty is Charged”, if the exporters of the above products received the documents specified in paragraphs 1 and 2 (or 4) of this Resolution within 12 months from the day of dispatch of said goods abroad.
16. The responsibility for the departure from the customs territory of the Republic of Lithuania of exported alcoholic beverages, tobacco products, petroleum products and good included in the list of the Ministry of Finance, on which excise duty is charged, shall lie with the exporter and the carrier. Where it transpires that the exported alcoholic beverages, tobacco products, petroleum products and good included in the list of the Ministry of Finance, on which excise duty is charged, were not exported from the customs territory of the Republic of Lithuania, the export procedure shall be recognised as invalid, the exporter shall be required to pay the taxes specified in paragraph 10 of this Resolution, and the Customs Department under the Ministry of Finance shall recover from the carrier or guarantor a fine in the double amount of the cargo value and of the amount of taxes levied on the goods, and the carrier shall be removed from the list of economic entities entitled to carry the above exported goods. The above provision must be stipulated in the contract of guarantee without which the exportation of the said goods shall be prohibited.
17. Pending the approval of the list of magazines to which VAT relief will apply, the printing, publishing and sale of all magazines (with the exception of those assigned by the Ethics Commission of Journalists and Publishers to the category of erotic publications and publications promoting violence) shall be exempt from the VAT.
18. Paragraphs 1-4 and 6-11 of this Resolution shall be applied from 22 December 1997, and paragraph 5 - from 1 February
20. Revised version of the Government of the Republic of Lithuania Resolution No. 876 of 30 July 1999 (beginning from 5 August 1999) The provisions of paragraphs 1, 9, 10 concerning presentation of bank documents certifying that the exported goods have been fully paid for by remitting funds to the exporter’s account shall not be applicable with respect to the AB “Maþeikiø nafta”. Prime Minister Gediminas Vagnorius Minister of Finance Algirdas Ðemeta