Sorainen represented Meseta in a case involving the 0% VAT rate. The Lithuanian Supreme Administrative Court ruled that tax administrators had unjustifiably imposed EUR 2 million in VAT, fines and interest on Meseta for allegedly unfair application of 0% VAT rates.
The Court declared that the State Tax Inspectorate and other institutions that examined the dispute made evident errors in applying the law when ruling that the company’s supply did not meet the requirements for application of 0% VAT rates and claiming, for example, that the company had been unfair.
Comments Saulė Dagilytė, partner with Sorainen: “This practice-changing court ruling by an extended panel of five judges is particularly important for businesses engaged in sales in the EU. The ruling explains in detail the court’s finding that certain requirements by the tax administration for business are disproportionate.”
The client was represented by Sorainen partner Saulė Dagilytė, senior associate Indrė Ščeponienė and associate Gerda Bernotaitė.