2019/11/19

Dispute of an oil trading company over €1.5 million VAT obligation

In 2016–2019, associate Miglė Mainionytė represented STI in a tax dispute with a company engaged in wholesale trade in petroleum products over the application of 0% VAT rate on the supply of goods subject to particularly high excise tax to non-VAT buyers in a EU Member State.

The dispute involved the application of VAT Directive No. 2006/112/EC and interpretation of Art. 49(1) and Art. 56(1) of the Law on Value Added Tax of the Republic of Lithuania on justification of application of zero-rate VAT and the development of new case-law.

The value of the dispute was estimated at €1.5 million.