Our tax litigation team has represented the biggest rapeseed oil manufacturer of Lithuania in a tax dispute concerning VAT fraud and application of zero VAT rate on intra-Community supplies. The tax authorities calculated EUR 2.7 million taxes and argued that the client has participated in VAT fraud scheme and unlawfully applied zero VAT rate on intra-Community supplies. Using recent explanations of the European Court of Justice, we proved that the client did not know that he is participating in the VAT fraud. We also provided sufficient evidences that the client legally applied zero VAT rate for intra-Community supplies, since a place of acquisition was in the other Member State.
Even though our tax litigation team was comfortable and ready to prove its arguments before the court, the client asked to solve this dispute as quickly as possible. Therefore, we used the ADR and successfully convinced the tax authorities that calculated taxes should be reduced from EUR 2.7 million to EUR 1 million. The client was satisfied with this result because it’s property seizure was lifted very quickly and a tax burden reduced by EUR 1.7 million.