Law No X-1365 of 13 December 2007 Amending and Supplementing Articles 21, 26, 27, 301, 32, 123, 124, 1241, 1242, 125, 126, 127, 128, 129, 130, 1302, 131, 134, 187, 224, 225, 2591, 269, 281, 312, 313, 314, 315, 320, 326, 330 and on the Annulment of Article 1243 of the Code of Administrative Breaches of Law of the Republic of Lithuania (Official Gazette (Valstybės Žinios), No 138-5641).

      Certain provisions of the Law were supplemented with an alternative type of penalty – disqualification (e. g. when an administrative breach is committed due to failure to observe road signs, carriage of persons and road traffic offence).

      The Law provides for administrative liability for repeated driving when drunk or intoxicated by narcotic, psychotropic or other materials affecting the psyche. It is also established that persons who were repeatedly driving vehicles being drunk or intoxicated by narcotic, psychotropic or other materials affecting the psyche may not be imposed a lower sanction than the minimum sanction established or a milder punishment than provided for in the sanction, or released from an administrative penalty. The Law also provides for administrative liability for drunk or intoxicated drivers of bicycles, motorbikes, horse cart drivers and horse-riders.

      The Law provides for a further differentiation of penalties depending on the impact of the actions on accident rate, i.e. penalties for actions that do not directly affect the accident rate were decreased and penalties directly affecting the accident rate were increased. In order to further individualize a penalty, a part of violations (e.g. road traffic offence that caused a slight health disorder or property damage and was committed by a drunk or intoxicated person by narcotic, psychotropic or other materials affecting the psyche; driving vehicles by drunk or intoxicated person by narcotic, psychotropic or other materials affecting the psyche without the right to drive; avoidance of drunkenness or intoxication examination; using alcohol, narcotic, psychotropic or other materials affecting the psyche after a traffic accident until the evaluation of its circumstances, etc.) shall be sent to court.

      The Law cancelled the point system, where certain road traffic offences were evaluated in points (formerly, when a certain number of penalty points was accumulated, the penalty of disqualification was applied, whereas now in many cases road traffic offences result in the alternative penalty – disqualification).

      Drivers who were driving without fastened seat-belts and had passengers without fastened seat-belts are subject to stricter administrative liability.

      Law No X-1381 of 18 December 2007 Amending Articles 77, 831, 832, 1101, 123, 1422, 1424, 145, 1632, 17316, 18815, 1932, 224, 225, 2252, 227, 229, 231, 2321, 233, 237, 2591, 262, 264, 271, 281, 320 of the Code of Administrative Breaches of Law of the Republic of Lithuania and Supplementing It with Articles 446, 1153, 1341, 1361, 1362, 1425, 1426, 1427, 1428, 1429, 14210, 21428, 21429, 2702 (Official Gazette (Valstybės Žinios), No 138-5644).

      The Law provides for administrative liability for the following:

      (i) violations of the terms for marketing or registration certificate conditions of a pharmaceutical preparation or violations of legislative acts regulating the obligations of the holder of marketing rights to a pharmaceutical preparation;

      (ii) violations of environmental protection requirements by burning dry grass, reed, thatch, field cultivation and garden waste;

      (iii) burning peat bogs and peaty grasslands, etc.

      Besides, the Law establishes and details administrative liability for non-compliance with the requirements for the transportation of dangerous goods, for non-compliance with the driving and rest regime for road vehicles carrying passengers or goods on internal and/or international routes, violations of the accounting rules, use of speedlimiting devices, exceeding the allowed axel weight, the total weight, for riving without a permit for road vehicles (their combinations), the measurements of which with or without freight exceeds the allowed limit or for non-compliance with the carriage terms specified in the permit; the authorities that control these activities age given the right to invoke administrative liability upon a violation of the above requirements. The liability of enterprise management with respect to the above violations has been established and tightened.

      Law No X-1367 of 13 December 2007 On Cross-Border Mergers of Limited Liability Companies of the Republic of Lithuania (Official Gazette (Valstybės Žinios), No 140-5747).

      The Law was passed in order to implement the Directive 2005/56/EC of the European Parliament and of the Council of 26 October 2005 on cross-border mergers of limited liability companies. The Law came into force on 1 January 2008.

      The Law regulates cross-border ,mergers of companies the legal form of which is a public limited or a private limited company in accordance with the laws of the Republic of Lithuania. In a cross-border merger one or more public limited companies merge with limited liability companies in a legal form that corresponds to a public limited company, or one or several private limited companies merge with limited liability companies in a legal form that corresponds to a private limited company, which are established in accordance with the law of other European Union Member States and the registered office, central administration or the main business location of which is within the European Economic Area.

      The Law establishes the requirements for the terms of a cross-border merger and merger report, the assessment of the merger conditions, public announcement of such a merger as well as the procedure to ensure the obligations of limited liability companies merged or participating in a cross-border merger; it regulates the procedure of the merger-related decision making and submission to the Register of Legal Persons, merger consequences, etc. The protection of the rights of the creditors, bond-holders, shareholders and employees of merged companies subject to the law of the Republic of Lithuania upon or after the merger is respectively regulated by the Law on Companies of the republic of Lithuania and labour legislation of the Republic of Lithuania.

      Law X-1346 of 4 December 2007 Amending the Law on Small and Medium-Sized Business of the republic of Lithuania (Official Gazette (Valstybės Žinios), No 132-5354).

      The new version of the Law expands the range of enterprises attributed to mediumsize, small or micro enterprises and cancels the requirement that such enterprises should be independent (i.e. after the Law comes into force, the enterprises where ¼ or more of the share capital or voting rights are held by one or several enterprises that are not medium-size or small companies with respect to the Law) and establishes the criteria for attributing businessmen who hold/do not hold enterprise shares or otherwise participate/ do not participate in the capital of the enterprises to small and medium-size business person.

      The Law also approved of the establishment of a public deliberative body – Lithuanian Small and Medium-Size Business Council and provided a regulation of its composition and functions.

      The new wording of the Law came into force on 1 January 2008.

      Order of the Minister of Finance of the Republic of Lithuania No 1K-383 of 21 December 2007 Amending the Order of the Minister of Finance No 24 of 24 January 2002 On the Approval of the List of Foreign States or Zones where Undertakings Registered or Otherwise Organised Are not Subject to the Provisions of Article 39 of the Law on Corporate Income Tax of the Republic of Lithuania and the List of Foreign Business Organisation Forms that Are Subject to the Provisions of Article 39 of the Law on Corporate Income Tax of the Republic of Lithuania (Official Gazette (Valstybės Žinios), No 137 – 5617). The Order amended the list of foreign states or zones where undertakings registered or otherwise organised are not subject to the provisions of Article 39 of the Law on Corporate Income Tax of the Republic of Lithuania. The list was extended by two states – the Republic of Bulgaria and Israel. The provisions of this Order are applied when calculating the taxable income of the tax period beginning in 2007 and of subsequent periods. The Order came into force on 29 December 2007.

      Order of the General Director of the Department of Statistics and the General Director of the Customs Department under the Ministry of Finance of the Republic of Lithuania No DĮ-290/1B-873 of 20 December 2007 Amending the Order of the General Director of the Department of Statistics and the General Director of the Customs Department under the Ministry of Finance of the Republic of Lithuania No DĮ-267/1B-1192 of 28 December 2004 On the Approval of the Rules for the Completion, Submission and Acceptance of Reports on the Trade of a Value Added Tax Payer with the European Union Member States (Official Gazette (Valstybės Žinios), No 137 – 5631).

      The Order presented a new wording of the Rules for the Completion, Submission and Acceptance of Reports on the Trade of a Value Added Tax Payer with the European Union Member States and of Their Appendix.

      The Order came into force on 1 January 2008.

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      Order of the General Director of the Customs Department under the Ministry of Finance of the Republic of Lithuania No 1B-792 of 29 November 2007 Amending the Order of the General Director of the Customs Department No 1B-574 of 28 May 2004 On the Approval of the Rules for the Inclusion of Amounts Paid by a Taxpayer to the Customs (Official Gazette (Valstybės Žinios), No 126 – 5153).

      The order presented a new wording of the Rules for the Inclusion of Amounts Paid by a Taxpayer to the Customs.

      The order came into force on 5 December 2007.

      Order of the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania No VA-79 of 17 December 2007 Amending the Order of the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania No VA-16 of 3 February 2005 On the Rules for the Submission of the Report on the Turnover of Excisable Goods Subject to Excise Relieves, on Approval of the Form FR0801 and Annulment of Certain Orders of the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania (Official Gazette (Valstybės Žinios), No 136 – 5562).

      The Order presented the new wording of the clause 11.9 “quantity” of the Rules for the Submission of Reports on the Turnover of Excisable Goods Subject to Excise Relieves. This clause contains information on the declaration of quantity in the documents of haulage of goods. In accordance with the new clause, the indicated quantity should be the same as ethyl alcohol, heating fuel under the temperature of 15° C (used to be 20° C).

      The Order came into force on 1 January 2008.

      

      Order of the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania No VA-78 of 17 December 2007 Amending the Order of the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania No V-131 of 30 April 2003 On the Approval of the Rules for the Issue of Permits to Acquire Excise- Free Diesel Fuel and for the Accounting for Such Fuel (Official Gazette (Valstybės Žinios), No 136 – 5561).

      The Order presented the new wording of Rules for the Issue of Permits to Acquire Excise-Free Diesel Fuel and for the Accounting for Such Fuel.

      The Order came into force on 1 January 2008.

      

      Order of the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania No VA-82 of 21 December 2007 Amending the Order of the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania No VA-68 of 28April 2004 On the Methodology for the Calculation of the Amount of Suretyship, Guarantee and Monetary Deposit to Secure Fulfilment of Tax Obligations that May Be Incurred Due to Transportation of Excisable Goods Applying the Temporary Excise Payment Deferment (Official Gazette (Valstybės Žinios), No 138 – 5702).

      The Order amended Paragraph 4 of the Methodology for the Calculation of the Amount of Suretyship, Guarantee and Monetary Deposit to Secure Fulfilment of Tax Obligations that May Be Incurred Due to Transportation of Excisable Goods Applying the Temporary Excise Payment Deferment. In accordance with the new Paragraph 4, the Excise Calculation Division of the Regional State Tax Inspectorate also considers the volume of the goods transported when calculating the document amount or the monetary deposit amount required to secure fulfilment of tax obligations that may be incurred due to transportation of excisable goods.

      The Order came into force on 1 January 2008.

      

      Law No X-1355 of 6 December 2007 Amending and Supplementing Articles 8, 9, 11, 21, 22, 23, 24, 28, 33, 34, 35 of the Law on Excise Tax of the Republic of Lithuania (Official Gazette (Valstybės Žinios), No 132 – 5358).

      The Law amended Articles 8, 9, 11, 21, 22, 23, 24, 28, 33, 34, 35 of the Law on Excise Tax of the Republic of Lithuania :

      • Part 1 Article 8 was supplemented with Paragraph 9 that establishes that on the day the new excise rate comes into force the persons who are entitled by the legislation to engage in wholesale trade in tobacco products incur an obligation to pay excise tax in the Republic of Lithuania for the cigarettes that are held by the property right and that are not subject to the regime of temporary deferment of excise tax payment and/or that were released for free circulation prior to the enforcement of the new excise tax rate. This provision applies only in the cases when the new excise tariff in force is higher that the previously valid tariff, and only to cigarettes held in the departments (warehouses, branch-offices, etc.) specified in the licences for wholesale trade in tobacco products from which wholesale in tobacco products takes place and/or in which these products are stored;

      • Article 9 was supplemented with Part 9, which establishes that a person, who incurs the obligation to calculate excise tax for cigarettes in accordance with Paragraph 9 Part 1 Article 8 of this Law, on the day the new excise tax rate on cigarettes comes into force, shall inventory the cigarettes held by the property right specified in Paragraph 9 Part 1 Article 8 in accordance with the procedures established the central tax administrator and within 5 business days shall submit the inventory statement to the local tax administrator on the territory of which the warehouse for excisable goods is located, and if the person is not the owner of the warehouse for excisable goods – to the local tax administrator on the territory of which the person is registered as the taxpayer. The owner of the warehouse of excisable goods or the registered trader shall declare the excise tax amount in the declaration specified in Part 3 of this article. The person who is not the owner of a warehouse of excisable goods or a registered trader, shall until the 15th day of the month after the month when the new excise rate came into force submit the excise tax declaration of the form established by the central tax administrator to the local tax administrator;

      • Article 11 was supplemented with the new Part 3, which states that the provisions of Part 2 of this Article regarding the tax payment procedure shall not be applicable to the payable excise tax amount calculated by the owner of the warehouse of excisable goods or a registered trader in accordance with the procedure established in Part 9 Article 9 of this Law;

      • Excise tax tariffs in Articles 21, 22, 23, 24, 28, 33, 34, 35 were changed. The new tariffs are as follows:

      • For beer – LTL 7.7 for 1 percent of actual alcohol concentration expressed in volume percentage;

      • For wine and other fermented beverages, the actual alcohol concentration of which is LTL 48 per hectolitre of the product. For other wine and other fermented beverages – LTL 180;

      • For intermediary products the actual alcohol volume concentration of which expressed in volume percentage does not exceed 15 percent volume – LTL 180 for a hectolitre of the product; and for intermediary products the actual alcohol volume concentration of which expressed in volume percentage exceeds 15 percent – LTL 276;

      - Ethyl alcohol – LTL 3840 for a hectolitre of pure ethyl alcohol;

      - Cigarettes: specific element – LTL 79, value element – 20 percent;

      - Lead-free petrol – LTL 1116 for 1000 litters of product; leaded petrol – LTL 1454 for 1000 litters of product;

      - kerosene – LTL 947 for 1000 litters of product;

      - gas oil – LTL 947 for 1000 litters of product, unless Article 35 establishes otherwise; gas oil for heating (domestic heating fuel) – LTL 73 for 1000 litters of product. The Law came into force on 1 January 2008 except for the amendments to Part 2 Article 28 that will come into force on 1 March 2008.

      Resolution of the Insurance Supervisory Commission of the Republic of Lithuania No N-99 of 11 December 2007 Amending the Resolution of the Insurance Supervisory Commission of the Republic of Lithuania No N-7 of 3 February 2004 On the Financial Statements of Insurance Companies (Official Gazette (Valstybės Žinios), No. 136 – 5567).

      The Resolution amended the following:

      - Paragraph 38 of the procedure for the preparation of financial statements. It is established in this Paragraph what should be presented in the abridged explanatory notes, i.e. information on income and expenses from pension accumulation activities, if the insurance company is engaged in pension accumulation activity, also information on off-balance sheet liabilities of the insurance according to the explanatory notes.

      - The minimum requirements of the explanatory notes are supplemented with Paragraph 58. Note “Off-balance sheet liabilities”. This note indicates the date of the origination and maturity of an off-balance sheet liability, the opening and closing amounts. Insurance companies engaged in the pension accumulation activities should show client assets managed by the right of trust as off-balance sheet liabilities. The explanatory notes should also contain a short description of each off-balance sheet liability and its potential effect on the financial position of the company.

      - This note does not contain off-balance sheet liabilities arising from or related to insurance or reinsurance agreements.

      Respectively, a new table “Off-balance sheet liabilities” appeared in the appendix of minimum requirements for the explanatory notes of insurance companies “Obligatory tables to be completed”.

      The Resolution came into force on 28 December 2007.

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      Order of the Minister of Finance of the Republic of Lithuania No 1K-378 of 19 December 2007 On the Approval of the Public Sector Accounting and Financial Reporting Standard 2 (Official Gazette (Valstybės Žinios), No 136 – 5537).

      The Order approved the Public Sector Accounting and Financial Reporting Standard 2 “Statement of Financial Position”. This Standard becomes effective for the annual financial statements covering the periods beginning on or after 1 January 2009.

      The Order came into force on 23 December 2007.

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      Order of the Minister of Finance of the Republic of Lithuania No 1K-379 of 19 December 2007 On the Approval of the Public Sector Accounting and Financial Reporting Standard 3 (Official Gazette (Valstybės Žinios), No 136 – 5538).

      The Order approved the Public Sector Accounting and Financial Reporting Standard 3 “Statement of Financial Performance”. This Standard becomes effective for the annual financial statements covering the periods beginning on or after 1 January 2009.

      The Order came into force on 23 December 2007.

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      Order of the Minister of Finance of the Republic of Lithuania No 1K-380 of 19 December 2007 On the Approval of the Public Sector Accounting and Financial Reporting Standard 4 (Official Gazette (Valstybės Žinios), No 136 – 5539).

      The Order approved the Public Sector Accounting and Financial Reporting Standard 4 “Statement of Changes in net Assets”. This Standard becomes effective for the annual financial statements covering the periods beginning on or after 1 January 2009.

      The Order came into force on 23 December 2007.

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      Order of the Minister of Finance of the Republic of Lithuania No 1K-357 of 7 December 2007 On the Approval of the Public Sector Accounting and Financial Reporting Standard 26 (Official Gazette (Valstybės Žinios), No 131 -5318).

      The Order approved the Public Sector Accounting and Financial Reporting Standard 26 “Resource Fund Accounting and Financial Reporting Package”. This Standard becomes effective for the annual financial statements covering the periods beginning on or after 1 January 2009.

      The Order came into force on 14 December 2007.

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      Order of the Minister of Finance of the Republic of Lithuania No 1K-348 of 29 November 2007 On the Approval of the Public Sector Accounting and Financial Reporting Standard 21 (Official Gazette (Valstybės Žinios), No 126 – 5143).

      The Order approved the Public Sector Accounting and Financial Reporting Standard 21 “Foreign Currency Transactions”. This Standard becomes effective for the annual financial statements covering the periods beginning on or after 1 January 2009.

      The Order came into force on 5 December 2007.

      Law No 1324 of 15 November 2007 Amending and Supplementing Articles 1, 2, 3, 4, 6, 14, 15, 16, 20, 21, 22, 24, 25, 26, 27, 29, 35, 39, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 57, 58, 61, 63, 64, 67, 76, 77, 78, 79(1), 80, 82, 88, 89, 91, 96, 100, 102, 107, 111, 115, 119, 122, 147, 169, 181, 186, 190, 192, 193, 197, 198, 200, 201, 202, 205, 206, 208, 209, 210, 214, 228 , Changing the Title of Chapter Four of the Law on Insurance of the Republic of Lithuania, Supplementing It with Part II(1), Articles 125(1), 229(1), 232 and Amending and Supplementing Its Appendix (Official Gazette (Valstybės Žinios), No 125-5092).

      The Law was adopted in order to implement Directive 2005/68/EC of the European Parliament and of the Council of 16 November 2005 on reinsurance and amending Council Directives 73/239/EEC, 92/49/EEC as well as Directives 98/78/EC and 2002/83/EC.

      The Law also adjusted certain articles in order to harmonize the obligations of Lithuania in the World Trade Organization in the field of insurance and cancelled the restriction applicable to brokers regarding mediation in the conclusion of additional voluntary pension accumulation agreements. The Law regulates the activities of insurance, reinsurance and insurance mediation. The Law does not apply to:

      (i) state social insurance relations,

      (ii) the relations regulated by the Law on Insurance of Deposits and Liabilities to Investors,

      (iii) reinsurance activities performed or assured by the state in exceptional cases acting as a reinsurer due to public interests when it is not possible to get an adequate security from commercial insurance.

      The Law came into force on 10 December 2007.

      The Law regulates reinsurance activities as follows: it adjusts the main terms of the Law related to reinsurance, establishes requirements for companies engaged in reinsurance only, provides detailed regulation of reinsurance activity supervision, etc. All the reinsurance companies operating in Lithuania will have to restructure their activities according to the requirements of the Law within the established transition period of 1 year, i.e. by 10 December 2008, or to discontinue operations.

      Moreover, the Law cancelled the restriction for broker companies to act as intermediaries in the conclusion of additional voluntary pension accumulation agreements.

      Resolution of the Government of the Republic of Lithuania No 1368 of 17 December 2007 On the Increase in the Minimum Wage (Official Gazette (Valstybės Žinios), No 137 – 5592).

      The Resolution approved the minimum hourly wage of LTL 4.85 and minimum monthly wage of LTL 800 litas for 2008.

      The Resolution came into force on 1 January 2008.

      Resolution of the Government of the Republic of Lithuania No 1405 of 27 December 2007 On the Shift of Rest Days in 2008 (Official Gazette (Valstybės Žinios), No 138 – 5673).

      The Resolution recommends companies to shift the set days in 2008 as follows:

      - from Saturday, 15 March to Monday, 10 March;

      - from Saturday, 10 May to Friday, 2 May;

      - from Saturday, 28 June to Monday 23 June.

      The Resolution came into force on 1 January 2008. Law No X-1345 of 4 December 2007 Amending Article 1791 of the Labour Code of the Republic of Lithuania (Official Gazette (Valstybės Žinios), No 132-5353).

      The Law cancelled the restriction for parents who have not entered into marriage to exercise the right to parental leave, i.e. it is established that both married men and men who have not entered into marriage may exercise this right. Resolution of the Government of the Republic of Lithuania No 1275 of 5 Decem ber 2007 Amending the Resolution of the Government of the Republic of Lithuania No 1508 of 29 November 2004 On the Approval of the Procedure for Establishing Non-full Working Time and the Related Conditions (Official Gazette (Valstybės Žinios), No 128-5219).

      The resolution cancelled the obligation of the employer or his authorised representative to notify the State labour Inspectorate about the employees who do not work full time when their working time is shorter than half a working day (shift) or employees working not a full working week when their working time is less than 3 working days per week. But the entire regulation of the duration of a working day was not cancelled.

      Government Resolution of the Republic of Lithuania No 1403 of 5 December 2007 Amending the Government Resolution of the Republic of Lithuania No 1458 of 15 December 2000 On the Approval of the List of the Objects of Levies, the Rates of Levies and Their Payment and Refund Rules (Official Gazette (Valstybės Žinios), No 132 – 5378).

      The Resolution changed the rates of levies and the list of their objects. The list was extended with a levy for the issue of a licence to liquefy natural gas. In accordance with the Resolution, the levy is LTL 2000, for a replacement of the licence – LTL 1000, for an issue of a duplicate licence or adjustment of requisite data – LTL 150.

      The resolution came into force on 16 December 2007.

      Order of the Minister of Finance of the Republic of Lithuania No 1K-359 of 10 December 2007 On the Establishment of the Penalty Rate for the 1st Quarter of 2008 (Official Gazette (Valstybės Žinios), No 131 – 5320).

      This Order approved the 0.04% late payment penalty rate applicable in the 1st quarter of 2008 to outstanding or delayed tax for each day of the delay.

      The Order came into force on 14 December 2007.

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      Order of the Minister of Finance of the Republic of Lithuania No 1K-360 of 10 December 2007 On the Establishment of the Interest Rate on Tax Loans for the 1st Quarter of 2008 (Official Gazette (Valstybės Žinios), No 131 – 532).

      This Order approved the 0.01% interest rate on tax loans applicable in the 1st quarter of 2008 for each day of using a tax loan.

      The Order came into force on 14 December 2007.

      Order of the General Director of the Statistics Department under the Government of the Republic of Lithuania No DĮ-271 of 10 December 2007 On the Approval of the Statistical Report Form on the Prices Industrial Products Sold by Manufacturers (Official Gazette (Valstybės Žinios), No 134 – 5442).

      The Order approved the statistical monthly report form KA-08 on the prices industrial products sold by manufacturers. In accordance with this new Order, the order of the General Director of the Statistics Department under the Government of the republic of Lithuania No DĮ-240 of 11 December 2006 On the Approval of the Statistical Report Form on the Prices Industrial Products Sold by Manufacturers was annulled.

      The Order came into force on 2 January 2008.

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      Order of the General Director of the Statistics Department under the Government of the Republic of Lithuania No DĮ-273 of 10 December 2007 On the Approval of the Statistical Report Form on the Activities of an Industrial Company (Official Gazette (Valstybės Žinios), No 133 – 5419).

      The Order approved the monthly report form P-11on the activities of an industrial company.

      The Order came into force on 21 January 2008.

      Resolution of the Government of the Republic of Lithuania No 1362 of 19 December 2007 Amending the Resolution of the Government of the Republic of Lithuania No 482 of 28 April 2004 On the Implementation of the Provisions of Article 104 of the Law on Tax Administration of the Republic of Lithuania (Official Gazette (Valstybės Žinios), No 137 – 5586).

      The Resolution amended and presented a new wording of the preamble of the Law. Also, the Resolution approved the list of cases when a tax administrator is entitled to require that a taxpayer presents a suretyship or guarantee document.

      The resolution came into force on 1 January 2008.

      Law No X-1322 of 13 November 2007 Amending and Supplementing Articles 2, 3, 28, 31, 32, 40, 62, 80 of the Law on Value Added Tax of the Republic of Lithuania (Official Gazette (Valstybės Žinios), No 125 – 5091).

      The law amended and presented a new wording for Articles 2, 3, 28, 31, 32, 40, 62, 80 of the Law on Value Added Tax of the Republic of Lithuania:

      - Paragraphs 13 and 15 of Article 80 were amended to establish that when a supply (provision) of goods and/or services which are non-taxable, taxed with the 0 percent VAT rate or the obligation to calculate (or deduct) and pay the VAT is borne by the buyer (client), the companies should make a reference to the provisions of the Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax. Prior to 30 November 2007 companies is such situation had to refer to the Council Directive 77/388/ EEC. Due to that reason, the provisions of Article 2 and Paragraph 1 Part 2 Article 3 were presented in a new wording with an indication of the new directive;

      - Amendments were made to the provisions of Part 7 Article 28, Part 3 Article 31 and Part 3 Article 32 according to which the persons who choose to calculate VAT for the financial services provided, rent of a thing that is immovable by nature or sale of a thing that is immovable by nature should ascertain that their service recipient and the buyer of a thing that is immovable by nature – VAT payer is a taxable person, i.e. a person engaged in economic activity;

      - Part 4 Article 40 is supplemented with the new Paragraph 5, which contains one more condition certifying that a consignment is of a non-commercial nature, i.e. the weight of coffee in a consignment should not exceed 500 grams (or coffee extract and essence – 200 grams), the weight of tea should not exceed 100 grams (or tea extract and essence – 40 grams;

      - Article 40 was supplemented with Part 6 that established that import VAT is not applicable to imported goods that are assembled or installed in Lithuania and on which the VAT should be calculated and paid to the budget by the buyer of these goods, if he is a VAT payer in accordance with the provisions of Paragraph 6 Part 3 Article 95 of the Law on VAT (the former Part 6 is considered as Part 7);

      - Paragraph 3 Part 2 Article 62 was amended and established that the provision should be annulled that input VAT for a passenger car is deductible if the services of teaching to drive would be provided using this car.

      Appendix 2 “Legislative Acts of the European Union with which the Provisions of the Value Added Tax Law Are Harmonised” was also presented in a new wording.

      The Law came into force on 1 December 2007, except for Parts 1 and 30 of Article 2, which came into force on 1 January 2008.

      

      Order of the Minister of Finance of the Republic of Lithuania No 1K-384 of 21 December 2007 on the Annulment of the Order of the Minister of Finance No 217 of 3 July 2002 On the Approval of the Rules for the Calculation and Adjustment of the Suretyship or Guarantee Amount Provided for in the Law on Value Added Tax of the Republic of Lithuania as Well as for the Submission and Cancellation of the Suretyship or Guarantee Documents and on the Annulment of the Respective Amending Documents (Official Gazette (Valstybės Žinios), No 138 – 5698).

      The Order annulled the following:

      - Order of the Minister of Finance of the Republic of Lithuania No 217 of 3 July 2002 On the Approval of the Rules for the Calculation and Adjustment of the Suretyship or Guarantee Amount Provided for in the Law on Value Added Tax of the Republic of Lithuania as Well as for the Submission and Cancellation of the Suretyship or Guarantee Documents.

      - Order of the Minister of Finance of the Republic of Lithuania No 1K-134 of 22 April 2004 Amending the Order of the Minister of Finance of the Republic of Lithuania No 217 of 3 July 2002 On the Approval of the Rules for the Calculation and Adjustment of the Suretyship or Guarantee Amount Provided for in the Law on Value Added Tax of the Republic of Lithuania as Well as for the Submission and Cancellation of the Suretyship or Guarantee Documents.

      - Order of the Minister of Finance of the Republic of Lithuania No 1K-288 of 3 October 2007 Amending On the Approval of the Rules for the Calculation and Adjustment of the Suretyship or Guarantee Amount Provided for in the Law on Value Added Tax of the Republic of Lithuania as Well as for the Submission and Cancellation of the Suretyship or Guarantee Documents.

      The Order came into force on 1 January 2008.