Our team has successfully defended a major international agro business conglomerate in one of the biggest tax disputes. The tax authorities tried to make our client pay VAT amounting to more than EUR 3 million for the international sale of goods. The tax authorities claimed that intra-Community transactions of the taxpayer рфв allegedly misapplied the VAT Triangulation Simplification and VAT “Safety Net” rules.
The Commission ruled in favor of the client and agreed that the tax administrator had applied the VAT Triangulation simplification and “safety net” rule incorrectly, because these rules had not been explained in the light of the VAT Directive. Also, the Commission confirmed that the international transactions, which were carried out by the client, were in line with the provisions in the EU VAT Directive. Thus, taking into consideration that EU law has primacy over national law, the Commission agreed that the client had not violated the provisions in the EU VAT directive. This situation resulted in our client not having a duty of paying any additional taxes in Lithuania.
It was the first tax dispute where the national VAT Triangulation simplification and “safety net” rules were analyzed and explained in the light of the VAT Directive by the Commission on Tax Disputes.