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Lithuania: Electronics subject to VAT reverse-charge mechanism

Lithuania: VAT reverse-charge mechanism

Effective 1 September 2019, the list of goods subject to the value added tax (VAT) reverse-charge mechanism will be expanded and will include electronics such as:


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  • Mobile phones, tablets, and portable laptop computers—until 30 June 2022
  • Hard disks—until 28 February 2022

On appeal by the Lithuanian authorities, the EU Council accepted that hard disks would be subject to the VAT reverse-charge mechanism, thereby allowing a deviation from EU VAT Directive No. 193.

Read an August 2019 report prepared by the KPMG member firm in Lithuania


Other recent VAT developments that may affect businesses in Lithuania and noted in the above report include the following items:

  • VAT when non-taxable threshold for small businesses is exceeded (Court of Justice of the European Union (CJEU) case C-265/18)
  • VAT rate of 0% on provision of goods when companies should have realized they were participating in a VAT-related fraud (Supreme Administrative Court of Lithuania case eA-2-575/2019)
  • Commentary on VAT law regarding the taxable value of multi-purpose vouchers (Lithuanian State Tax Inspectorate (STI))
  • Filling of customs export form on exporting goods from the EU not a necessary condition for 0% rate of VAT provided the key condition—goods are factually exported from the EU—is fulfilled (CJEU C-275/18)
  • VAT return in sale and lease back situation—EU VAT directive does not require that initial VAT return be revised if certain aspects of national law are met (CJEU C-201/18)
  • Location of professional trainings is the EU country where the trainings take place (CJEU C-647/17)
  • Acceptance of construction and installation work may be considered to be the VAT-able moment (CJEU C-224/18)

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