Lithuania supports Poland's initiative to fight against tax avoidance in the European Union

Date

2019 11 08

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Prime Minister Saulius Skvernelis sent a letter to the Polish Prime Minister Mateusz Morawiecki supporting the initiative to fight against tax avoidance in the European Union.

The letter stresses that Lithuania consistently supports the actions aimed at encouraging the use of the most efficient solutions to fight against VAT avoidance. In addition, it expresses full support to endeavours to intensify the search for innovative means and measures to fight fraud by ensuring closer cooperation in this field.     

Prime Minister Saulius Skvernelis emphasises in his letter that VAT is a very important source of revenue for the national budgets of EU Member States. The aim of the EU system of cooperation in the field of VAT based on legislation approved at EU level  is to rapidly respond to the requirements of the single market that is continually changing, however, not all the potential of mutual cooperation in combating tax avoidance is being exploited.

'It is obvious that all the potential must be used in connection with the present VAT compliance gap. We welcome the example of existing good practice – bilateral Agreement between Lithuanian and Polish tax administrations of 2017 implementing additional measures aimed at combating VAT avoidance. We believe that closer multilateral cooperation would contribute to achieving  significant  progress in the field in question,' reads the Prime Minister's letter.

 In addition, the letter emphasises that Lithuania is willing to become involved in the activities of the joint working group to be established and pursue, in collaboration with other Member States, a common objective to improve tax collection.