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

2020.04.10

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.