VILNIUS — In the case of unpaid debts, a creditor will be able to reclaim the value added tax it paid to the Lithuanian government under a new law.

Tax law has changed a lot over the last year and many businesses have complained that it eroded profit margins or even forced companies into bankruptcy. The economic crisis forced the government to raise taxes at the [private_supervisor]start of 2009 to fill desperately empty coffers.

From Jan. 1, 2010 sales on, vendors or service providers will be able to reclaim its VAT if no payment for the service is received after the sale of an item or only partial payment is made.

In the Lithuanian parliament, 74 voted for the bill, eight opposed and 17 abstained from voting.

The law will come into effect when it has been proved by the vendor that the recovery of the debt is hopeless and there is no chance of payment. Three months must elapse after the debt has been proved to be unserviceable and then the VAT will be refunded. The onus will fall on the tax payer to prove his right to the tax refund.

If the debt was paid, however, the VAT would need to be returned to the government.

The government will determine how hopeless debt shall be calculated. [/private_supervisor] [private_subscription 1 month]start of 2009 to fill desperately empty coffers.

From Jan. 1, 2010 sales on, vendors or service providers will be able to reclaim its VAT if no payment for the service is received after the sale of an item or only partial payment is made.

In the Lithuanian parliament, 74 voted for the bill, eight opposed and 17 abstained from voting.

The law will come into effect when it has been proved by the vendor that the recovery of the debt is hopeless and there is no chance of payment. Three months must elapse after the debt has been proved to be unserviceable and then the VAT will be refunded. The onus will fall on the tax payer to prove his right to the tax refund.

If the debt was paid, however, the VAT would need to be returned to the government.

The government will determine how hopeless debt shall be calculated. [/private_subscription 1 month] [private_subscription 4 months]start of 2009 to fill desperately empty coffers.

From Jan. 1, 2010 sales on, vendors or service providers will be able to reclaim its VAT if no payment for the service is received after the sale of an item or only partial payment is made.

In the Lithuanian parliament, 74 voted for the bill, eight opposed and 17 abstained from voting.

The law will come into effect when it has been proved by the vendor that the recovery of the debt is hopeless and there is no chance of payment. Three months must elapse after the debt has been proved to be unserviceable and then the VAT will be refunded. The onus will fall on the tax payer to prove his right to the tax refund.

If the debt was paid, however, the VAT would need to be returned to the government.

The government will determine how hopeless debt shall be calculated. [/private_subscription 4 months] [private_subscription 1 year]start of 2009 to fill desperately empty coffers.

From Jan. 1, 2010 sales on, vendors or service providers will be able to reclaim its VAT if no payment for the service is received after the sale of an item or only partial payment is made.

In the Lithuanian parliament, 74 voted for the bill, eight opposed and 17 abstained from voting.

The law will come into effect when it has been proved by the vendor that the recovery of the debt is hopeless and there is no chance of payment. Three months must elapse after the debt has been proved to be unserviceable and then the VAT will be refunded. The onus will fall on the tax payer to prove his right to the tax refund.

If the debt was paid, however, the VAT would need to be returned to the government.

The government will determine how hopeless debt shall be calculated. [/private_subscription 1 year]

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