Lithuania treatment of chain transactions | KPMG Global
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Lithuania: Supply of goods in chain transactions was intra-Community supply

Lithuania and tax treatment of chain transactions

The Court of Justice of the European Union (CJEU) issued a judgment finding that in a chain of transactions when two supplies are made but there is only one transport of the goods, the supply that transports the goods to the ultimate buyer in an EU Member State is considered to be an intra-Community supply. Therefore, sale of goods would be treated as a local supply.


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A Lithuanian company imported frozen fish products, which it sold as an intra-Community supply to an Estonian company. Before the goods left Lithuania, the Estonian company resold the goods to a third EU company and transported the goods from Lithuania directly to the country of the third company. The Lithuanian company challenged the treatment of the transaction by the tax authorities. 

The CJEU found that in situations when there were two supplies but a single transport of the goods to an EU Member State, the supply was to be treated as an intra-Community supply (that is, a local supply).


Read an August 2017 report [PDF 235 KB] prepared by the KPMG member firm in Lithuania

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