Among them, 1,500 were self-employed foreigners who failed to meet tax obligations.
The Rise of Tax Evasion among Self-Employed Foreigners in Lithuania
Background
Lithuania, a country in Eastern Europe, has seen a significant increase in the number of self-employed foreigners who are avoiding taxes. According to recent data, there were 15,800 foreigners who registered their individual activity in Lithuania in 2023. Among these, 1,500 were self-employed individuals who failed to meet their tax obligations.
The Most Common Offenders
The Importance of Transparency in Food Delivery
Wolt, a leading food delivery company, has taken a significant step towards transparency by providing monthly information to VMI (Value-Added Money Institute) on the income of all couriers, restaurants, and other traders operating through its platform. This move is a testament to the company’s commitment to fairness and accountability in the food delivery industry.
The Benefits of Transparency
Transparency is essential in any industry, and the food delivery sector is no exception.
Foreigners exempt from EU VAT for ride-hailing services under specific conditions.
The VAT Exemption for Foreigners in the EU
The European Union’s Value-Added Tax (VAT) system is designed to ensure that businesses pay the correct amount of tax on goods and services. However, the EU’s VAT rules can be complex and sometimes lead to confusion. In the case of ride-hailing services, the EU has implemented a specific exemption for foreigners who provide these services.
Who is Exempt from VAT? Foreigners who provide ride-hailing services via the Bolt platform are exempt from registering for VAT, as long as they meet certain conditions. These conditions include:*
- The service is provided in a country that is not part of the EU. The service is provided to a non-EU customer. The service is not considered a “supply of services” under EU law.
The Need for Greater Transparency in Ride-hailing Platforms
The rise of ride-hailing platforms has transformed the way people move around cities, but it has also created new challenges for couriers and drivers. In Lithuania, a representative of the Courier Association has been sounding the alarm about the lack of transparency in these platforms.
The Problem of Unawareness
Linas Mazgeika, a representative of the Courier Association, has been highlighting the issue of unawareness among couriers and drivers about their tax obligations. He argues that many of these workers are not aware of the taxes they need to pay, and as a result, they are not being properly managed. The Courier Association estimates that up to 70% of couriers and drivers in Lithuania are unaware of their tax obligations.
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