| Abstract [eng] |
The present Lithuanian tax system was started to form after the restoration of Lithuania's independence in 1990. Since then, more laws have been introduced in Lithuania to define taxes. Value added tax (VAT referred to in the master's work) was invented by French M. Lore in 1958, and perhaps the most important harmonization of the VAT tax was observed throughout Europe in 1977. Following the adoption of the Sixth Council Directive 77/388 on the harmonization of the laws of the Member States relating to turnover taxes. In Lithuania, taxes are generally regulated by the Law on Tax Administration of the Republic of Lithuania, and specifically on VAT, the Law on Value Added Tax of the Republic of Lithuania. VAT is important and beneficial, as global revenues to the budget grow annually and account for about 40% of state revenue. VAT in Lithuania is the main source of income in the state budget and accounts for 39% of the revenue of the state budget. Since VAT is so important for the national economy, other elements of the VAT system are also important. The principle of fiscal neutrality is a fundamental principle of the VAT , by which the tax burden is passed on to the final user. In this way, economic operators are exempted from the tax burden. The principle of fiscal neutrality is implemented through the right to deduct VAT, which is based on the full functioning mechanism of VAT. This principle is being increasingly emphasized both in the courts of Lithuania and in the practise case law of the European Court of Justice. It is noted that economic operators are increasingly using the principle of fiscal neutrality. In most cases, tax disputes arise from the fact that the tax administrator refuses to tax the taxable person for the right to deduct VAT. Such disputes arise from unlawful transactions or the purchase or creation of goods illegally because of the fact that the same competing goods or services are taxed differently from VAT. Also, formal invoice requirements are often not met, there is a problem with adjustment of deductions, the tax administrator is charged twice on VAT. In addition, the right to deduct VAT is often refused due to abuse or roguery. |
