On the Implementation of Article 7 of the Law of the Republic of Lithiania on Excise Duty


Published: 0000-00-00

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government of the republic of lithuania
 
RESOLUTION NO 478
 
of 27 April 2004
 
ON THE IMPLEMENTATION OF ARTICLE 7 OF THE LAW OF THE REPUBLIC OF LITHIANIA ON EXCISE DUTY
 
Vilnius
 
 
Acting pursuant to Articles 7(2) and 7(5) of the Law of the Republic of Lithuania on Excise Duty (Valstybės žinios (Official Gazette), No 98-3482, 2001; No 26-802, 2004), the Government of the Republic of Lithuania h a s  r e s o l v e d:
1. To approve the following appended hereto:
1.1. Rules for the Calculation of the Value of Surety (Guarantee) for the Obligations of a Registered Trader;
1.2. Description of Cases When the Tax Administrator has the Right to Remove a Registered Trader from the List of Registered Traders.
2. To charge the State Tax Inspectorate under the Ministry of Finance with a task of drafting and approving, by 1 May 2004, legal acts necessary for the implementation of the Rules for the Calculation of the Value of Surety (Guarantee) for the Obligations of a Registered Trader as approved by this Resolution.
3. Paragraph 1 of this Resolution shall enter into force on 1 May 2004.
 
 
 
Prime Minister                                                                                   Algirdas Brazauskas
 
 
Minister of Finance                                                                           Dalia Grybauskaitė
 
 
 
APPROVED by
Resolution No 478
of the Government of the Republic of Lithuania
of 27 April 2004
 
 
Rules for the Calculation of the Value of Surety (Guarantee) for the Obligations of a Registered Trader
 
 
I. GENERAL PROVISIONS
 
1. The Rules for the Calculation of the Value of Surety (Guarantee) for the Obligations of a Registered Trader (hereinafter referred to as these Rules) regulate the procedure and the conditions for the calculation of the value of surety (guarantee) for the obligations of a registered trader.
2. The value (expressed as a percentage) of surety (guarantee) for the obligations of a registered trader as defined in Article 3(24) of the Law of the Republic of Lithuania on Excise Duty (Valstybės žinios (Official Gazette) No 98-3482, 201; No 26-802, 2004) shall be calculated on the amount of excise duty calculated for the average quantity of excisable goods under a duty suspension arrangement which is projected to be received in a tax period for business purposes from another Member State of the European Union (hereinafter referred to as another Member State).
3. For the purpose of calculating the value of surety (guarantee), account shall be taken of the average quantity of excisable goods under a duty suspension arrangement, which is projected to be received, as stated in the application filed by the person, in a tax period for business purposes from another Member State.
4. The value of surety (guarantee) shall be calculated by the tax administrator who registers the trader in the list of registered traders.
 
II. CALCULATION OF THE VALUE OF SURETY (GUARANTEE)
 
5. The value of surety (guarantee) for the obligations of a registered trader shall be 10% of the amount of excise duty specified in paragraph 2 of these Rules, where the application to be registered as a registered trader is filed by a person who meets all of the following conditions:
5.1. the applicant has not underpaid any taxes due to the budgets and/or funds, the taxes attributable whereto are administered by the State Tax Inspectorate, nor any contributions to the budget of the State Social Security Fund.  If the payment of taxes, late payment charges or fines has been deferred in accordance with legal acts of the Republic of Lithuania or if there is a tax dispute concerning such taxes, late payment charges or fines, the applicant shall be deemed to have no underpayments. In this case, the person shall be deemed to meet the condition set in this paragraph, unless the tax underpayment exceeds LTL 1000;
5.2. the applicant is not in default of his obligations to the customs;
5.3. the applicant (if a natural person, and, where the applicant is a legal person, the applicant’s senior manager and the manager of the accounting unit or a senior finance officer (accountant), also the holder of the controlling block of shares (interest, participation), or, where the applicant is an unlimited liability entity, its owner or member) has not been recognised guilty of crimes or criminal offences against finances, financial system, economic management or the economy and business or of forgery of documents, nor any of the above-mentioned persons have an unspent conviction for any of the above mentioned crimes, nor any of these persons have been administratively penalized under the Code of Administrative Offences of the Republic of Lithuania for:
5.3.1. violation of the procedure for the submission of accounts and documents regarding his personal (if a natural person) income, assets, profit and taxes, or those of the enterprise, institution or organisation, and for tax evasion;
5.3.2. selling, keeping or carrying goods without documents, also for forgery of special marks, i.e. tax stamps (if there are required by legal acts), and documents;
5.3.3. fraudulent financial accounting;
5.3.4. engaging in commercial, economic, financial or professional activities without holding a licence (authorisation) to engage in such activities, or for violation of the procedure for engaging in activities subject to licensing;
5.3.5. failure to fulfil lawful instructions of managers and other officials of the State Tax Inspectorate, also for interfering with the exercise of other rights of these officials;
5.3.6. intentional damage or removal of a seal affixed by a competent officer;
5.3.7. sale of goods or services without using cash registers;
5.3.8. violation of the procedure for the use of cash registers;
5.3.9. violation of the procedure for the calculation and payment of wages and salaries;
5.4. the applicant has been engaged in the activities involving the type of excisable goods which he intends to receive from another Member State, for at least three years.
6. In other cases not covered in paragraph 5 of these Rules, the value of surety (guarantee) for the obligations of a registered trader shall be 100% of the amount of excise duty specified in paragraph 2 above.
 
III. ADJUSTMENT OF THE VALUE OF SURETY (GUARANTEE) FOR THE OBLIGATIONS OF A REGISTERED TRADER
 
7. The value of surety (guarantee) for the obligations of a registered trader shall be adjusted on a written instruction of the local tax administrator in the following cases:
7.1. after the end of every calendar quarter, if the excise duty calculated on the average quantity of excisable goods under a duty suspension arrangement actually received in a tax period for business purposes from another Member State exceeds, in the calendar quarter concerned, the amount of excise duty on the basis whereof the value of the valid surety (guarantee) has been calculated by over 5%;
7.2. when the rates of excise duty set for the excisable goods received change;
7.3. when the surety (guarantee) has been invoked to discharge tax obligations of the registered trader.
8. The value of surety (guarantee) for the obligations of a registered trader may be adjusted, i.e. reduced, at the request of the registered trader, to the amount specified in paragraph 5 of these Rules, if not a single violation has been made over 12 calendar months of the start of operation of the registered trader and if the registered trader meets all the conditions set in subparagraphs 5.1 to 5.4 of these Rules.
9. The value of surety (guarantee) for the obligations of a registered trader shall be adjusted by delivering a new surety (guarantee) for the obligations of a registered trader (where the value of surety (guarantee) to be delivered to the tax administrator exceeds the value of the previous surety (guarantee) delivered by the person concerned, an additional surety for the difference in the amounts may be delivered).
10. In the cases defined in paragraph 7 of these Rules, the new or additional surety (guarantee) shall be delivered not later than within five working days from the date of receipt of a written instruction from the local tax administrator.
11. Upon acceptance of the new surety (guarantee), the previous surety (guarantee) may no longer be used to secure the discharge of tax obligations and shall be returned to the registered trader against signature.
 
IV. CASES WHEN NO SURETY (GUARANTEE) IS REQUIRED
 
12. No surety (guarantee) for the obligations of a registered trader shall be required if the person (other than a state or municipal enterprise) wishing to be registered as a registered trader files a written commitment to the tax administrator to discharge obligations of a registered trader. This provision shall apply only where the person wishing to be registered as a registered trader meets the following criteria:
12.1. has been engaged, in the Republic of Lithuania, in the activities involving the type of excisable goods which he intends to receive from another Member States, for at least five years;
12.2. meets all of the conditions set in subparagraphs 5.1 to 5.3 of these Rules;
12.3. the value of surety (guarantee) to be delivered pursuant to the provisions of paragraphs 5 or 6 of these Rules does not exceed 50% of the formed and registered capital, and the enterprise holds the corresponding value of assets that are not pledged or seized.
13. The registered trader shall have the right to address the local tax administrator with a request to relieve him from the obligation to deliver a surety (guarantee) and apply the provisions of paragraph 12 of these Rules, if the requirements laid down in these Rules are met.
14. The written commitments referred to in paragraph 12 of these Rules shall be filed, accepted and registered in the manner prescribed by the central tax administrator.
15. The registered trader shall supply the tax administrator with all information about any changes in the items specified in paragraph 12.3 of these Rules. If the registered and formed authorised capital of the registered trader who has filed a written commitment becomes insufficient to secure the discharge of obligations in the manner prescribed in paragraph 12 of these Rules, a surety (guarantee) for the deficient value shall be delivered not later than within five working days after receipt of a written instruction of the local tax administrator.
16. If the registered trader who has filed a written commitment no longer meets at least one of the conditions set in subparagraphs 5.1 to 5.3 of these Rules, a new surety (guarantee) prescribed by these Rules shall be delivered not later than within five working days after receipt of a written instruction of the local tax administrator.
 
 
 
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APPROVED by
Resolution No 478
of the Government of the Republic of Lithuania
of 27 April 2004
 
 
Description of Cases When the Tax Administrator has the Right to Remove a Registered Trader from the List of Registered Traders
 
 
A registered trader (hereinafter referred to as the person) may be removed from the list of registered traders on the decision of the tax administrator in the following cases:
1. if the person has not received for business purposes from another Member State any excisable goods under a duty suspension arrangement over six months from the date of registration of the person as a registered trader;
2. if the person has not filed, within the prescribed period of time, a document to secure the discharge of tax obligations, where such document is required in accordance with legal acts;
3. in the event of abolition of licences prescribed in laws, giving the right to engage in the activities involving excisable goods;
4. at the person’s request.
 
 
 
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