European Court of Justice Issues Advocate General Opinion on Lithuanian VAT Late Payment Interest, Penalties

The European Court of Justice (ECJ) Nov. 13 issued an Advocate General opinion for Case C-544/24, on Lithuania’s VAT rules for late payment interest and penalties. The taxpayer, a Lithuanian company that was found guilty of VAT fraud, sought exemption from late payment interest and penalties imposed by the Lithuanian tax authorities. The tax authorities set late payment interest with a fixed penalty, allowing no reduction regardless of the nature or severity of the infringement. Upon request for a preliminary ruling, the Advocate General opined that EU Directive 2006/112, on the common system of VAT, must be interpreted as not ...