Represented a client in a dispute regarding a possibility to apply a ‘zero’ VAT rate

Our tax law experts represented a client in a tax dispute where Lithuanian tax authorities denied a possibility to apply a ‘zero’ VAT rate on supply of freezing system in fishing vessels. Tax authorities have argued that such supply is not related to the purpose of fishing activities.

Our law firm successfully represented the client and proved that refrigeration system is indirectly related to the fishing activities. It was a first tax dispute in Lithuania where a ‘zero’ VAT rate was applicable to supply of equipment which is indirectly related to fishing activities.

Constructive analysis of the case-law of the CJEU allowed our law firm to prove that a refrigeration system in fishing vessels is inseparable part of fishing vessel itself. Despite the fact that all tax exemptions must be applied strictly within the limits prescribed in law, our arguments were accepted by the tax authorities in full.