Transactions whose essential aim is a tax advantage contrary to the purpose of the VAT directive may be redefined — establishing the prohibition of abuse in the field of VAT.
The right to deduct VAT may be refused where it is objectively established that the taxable person knew or should have known that the transaction was connected with fraud.
In a carousel-fraud chain, an honest purchaser who did not and could not have known of the fraud retains the right to deduct VAT.
Controlled foreign company (CFC) rules may apply only to "wholly artificial arrangements" — otherwise they restrict the freedom of establishment.
Exchanging cryptocurrency (bitcoin) for traditional currency is a VAT-exempt financial transaction. Relevant when assessing crypto operations.
The Supreme Administrative Court of Lithuania applies CJEU rulings in tax disputes and, where EU-law questions arise (e.g. input VAT deduction), refers them to the CJEU for a preliminary ruling.
We will assess your situation in light of relevant case law.
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