2006/388/EC: Council Decision of 15 May 2006 authorising the Republic of Lithuania to apply a measure derogating from Article 21 of the Sixth Directive 77/388/EEC on the harmonisation of the laws of the Member States relating to turnover taxes

By way of derogation from Article 21(1)(a) of Directive 77/388/EEC, in the version set out in Article 28g thereof, Lithuania is hereby authorised to designate the taxable person, to whom the supplies of goods or services referred to in Article 2 are made, as the person liable to pay VAT.

The recipient of the supply of goods or services may be designated as the person liable to pay VAT in the following instances: 1. supplies of goods and services by a taxable person while under an insolvency procedure or a restructuring procedure subject to judicial oversight; 2. supplies of timber; 3. supplies of ferrous waste and scrap, residues and other recyclable materials consisting of ferrous and non-ferrous metals; 4. supplies of construction work by a subcontractor to either a general contractor, another subcontractor or a company which carries out its own construction work.

The authorisation granted under Article 1 shall expire on 31 December 2009. However, points (3) and (4) of Article 2 shall cease to have effect on the date of the entry into force of a Directive rationalising the derogations pursuant to Article 27 of Directive 77/388/EEC which includes a special scheme for the application of VAT to that sector, provided that date is before 31 December 2009.

This Decision is addressed to the Republic of Lithuania.