Lithuania treatment of chain transactions | KPMG | GLOBAL

Lithuania: Supply of goods in chain transactions was intra-Community supply

Lithuania and tax treatment of chain transactions

The Court of Justice of the European Union (CJEU) issued a judgment finding that in a chain of transactions when two supplies are made but there is only one transport of the goods, the supply that transports the goods to the ultimate buyer in an EU Member State is considered to be an intra-Community supply. Therefore, sale of goods would be treated as a local supply.

1000

Related content

Summary

A Lithuanian company imported frozen fish products, which it sold as an intra-Community supply to an Estonian company. Before the goods left Lithuania, the Estonian company resold the goods to a third EU company and transported the goods from Lithuania directly to the country of the third company. The Lithuanian company challenged the treatment of the transaction by the tax authorities. 

The CJEU found that in situations when there were two supplies but a single transport of the goods to an EU Member State, the supply was to be treated as an intra-Community supply (that is, a local supply).

 

Read an August 2017 report [PDF 235 KB] prepared by the KPMG member firm in Lithuania

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit