| Abstract [eng] |
The Parliament of the Republic of Lithuanian adopted on 5 March 2002 the act of value added tax (hereinafter – VAT act), which came into force on 1 of July. Under Article 3 of VAT act, the supply of goods or services shall be subject to VAT, if: 1) the supply of goods or services effected for consideration; 2) the supply of goods or services effected within the territory of the country; 3) The supply of goods or services effected by a taxable person which carries out his economic activity. One of the conditions – the taxable person must carry out any economic activity. It is compulsory condition if the supply of goods or services could be subject to VAT. The exercise of economic activity separate taxable persons and persons which do not have to pay VAT. Proper application of definition of economic activity not only necessary for country revenue but also can affect person’s burden of taxation. In this study the definition and features of economic activity are analyzed in the way of comparing Lithuanian legislation with European Union legislation. Also the European Court of Justice case-law is analyzed. After the features of economic activity are separated and described, there is trading of securities as economic activity analyzed. There are described cases when such activity can be regarded as economic activity and when it cannot. As example there are situation from European Court of Justice case-law presented. Also burden of taxation is in the case if such activity can or cannot be regarded as economic activity considered. |
