| Abstract [eng] |
The master’s thesis analyses the legal regulation of the application of value added tax to financial services within the Lithuanian legal system. In order to assess the clarity of the current provisions of the Law on Value Added Tax of the Republic of Lithuania and their practical implementation, an analysis was carried out of the jurisprudence of the Court of Justice of the European Union, the Law on Value Added Tax of the Republic of Lithuania, the commentary on the Law on Value Added Tax of the Republic of Lithuania as well as academic works by foreign scholars. The first part of the thesis focuses on the functioning of the value added tax system and fundamental principles of the value added tax regime as applied in the financial services sector. The second part discusses what qualifies as financial services for value added tax purposes, how the option to tax financial services is implemented in Lithuania, and the importance of the case law of the Court of Justice of the European Union. The third part of the thesis examines the practical application of the value added tax applicable to financial services in Lithuania, identifying the shortcomings of the current regulation. Finally, the fourth part addresses fiscal implications of exempting financial services from value added tax and the future. The analysis conducted in the thesis leads to the identification of factors that influence the clarity of the application of value added tax rules in the financial services sector. In addition to findings reflecting the results of the research and the position of the author on the identified problems, the conclusions also provide recommendations on how the problems identified in the thesis should be solved in order to ensure legal certainty and effective application of value added tax rules to financial services in Lithuania. |
