The European Commission closed infringement proceedings with Lithuania on 19 April 2023 in the case INFR(2020)4057 regarding VAT avoidance and the threshold for small enterprises. As previously reported, Lithuania was sent a letter of formal notice (infringement notice) from the European Commission regarding its anti-abuse (splitting) rule, which provided that where legal entities are controlled by the same person(s) and the combined revenue of the legal entities exceeds the VAT registration …