Tax expert Dainius Daugirda provided legal advice to Cronimet, a group of companies with operations in more than 50 countries and one of Europe’s leading steel processing companies regarding the selection of a business model for purchasing and exporting ferrous metals from the Baltic states.
Cronimet Group is the first company specialising in the purchase and export of metals to have started applying the provisions of Article 41 Paragraph 2 of Lithuania’s Law on Value Added Tax that regulates the exports of goods from the EU territory. Up until then exports within this market were carried out in accordance with the provisions of Article 41 Paragraph 1 only.
The implementation of this business model required an integrated solution as all agents involved in the marketing chain had to understand and implement new methods of applying VAT, including sellers, keepers, loaders and carriers of ferrous metals as well as others involved in related operations. The proposals offered were based on the analysis of the fiscal environment of the Baltic states, Germany and Turkey. Cronimet Group launched its operations in Lithuania in 2018 once this business structure was implemented.