The Lithuanian parliament has approved the Ministry of Finance’s draft budget bill for 2020. This includes amendments implementing new EU VAT rules in regards to the cross-border supply of goods within the EU, also known as the “Quick Fixes.”
The Quick Fixes were adopted on the 17 December 2019 in Lithuania and are effective from 1 January 2020.
EU’s ‘Quick Fixes’
The ‘Quick Fixes’ aim to provide clarity and guidance on the correct VAT treatment on EU supplies of goods. They include the following:
- Harmonisation on the VAT treatment of chain transactions in the EU;
- Tightening of the requirements for zero-rated intra-EU supplies of goods;
- Simplification for cross-border consignment stock cases in the EU; in addition to
- Standardisation of documentary proof in the case of zero-rated intra-EU supplies of goods
The enactment of this bill follows many other EU Member States in implementing the ‘Quick Fixes’. All Member States need to enact this Directive into law by 1 January 2020.
The Quick Fixes are now in effect in Lithuania. You can prepare your business for the Quick Fixes by watching our webinar here.
If any of the above changes affect your business, then please contact one of our VAT experts to find out how we can assist you.