Lithuania and Poland seek to tax new digital business models
As the world economy grows and invests a lot in digitization and innovation, this can open up avenues for tax evasion and fraud. Therefore, the Lithuanian and Polish Ministry of Finance agreed on Friday to cooperate with these phenomena, especially in the field of Value Added Tax (VAT), the Ministry of Finance reported.
“Lithuania and Poland aim to ensure that new digital business models are effectively taxed, thereby preventing possible doubts,” reads the agreement signed by the ministries G. SkaistÄ— and Magdalena Rzeczkowska.
The value added tax (VAT) gap assessment report of the European Commission published last December shows that in 2019 the VAT collection gap in Lithuania decreased by 3%. point to 21.4 percent.
G. SkaistÄ— said this year that Lithuania was evaluated as a country in the report, the reduction of the VAT gap was the largest, and the Ministry of Finance aims for the VAT gap to reach the average of the European Union in the 2030s – in this case, the budget could collect an additional 800 million. euro income.
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