For some time now, I have been regularly receiving questions on my Instagram about why my M6 has Lithuanian plate numbers, so this article is for all of you who had this question!
This time I want to tell you a little more about my new car. To those who have not read the previous articles, I can briefly explain that several months ago, at a party, I met a guy who sells cars from Germany. As the car theme was close to both of us, we quickly found a common language. He showed me a very beautiful and good 2013 BMW M6 Gran Coupe, which was still in Germany at the time. Due to emotions and alcohol, I was ready to buy that car that evening. Okay, it may not have been such a spontaneous decision, because I had been thinking about buying a new car for some time and the M5 and M6 models in their price range were the fulfillment of all my dreams. I just needed to find the right offer.
If the car had already been in Latvia that day, I would definitely have dragged that guy behind the hood (he was in a black hoodie at the party and reminded me of a PRO poker player rather than a typical party-goer) to the Road Traffic Safety Directorate the next morning, but since that car was still in Germany, I had time to think and consult. More about how to buy this car, because I had already decided in my head that the car would be mine.
So why did I choose to register the car in Lithuania? This is what everyone who sees LT number plates asks me. In fact, the benefits are quite a lot. First, the inspection in Lithuania must take place every two years. I have no difficulty going to the Road Traffic Safety Directorate every year, but the nearest Lithuanian Road Traffic Safety Directorate is also about an hour's drive from Riga. The relatively new M6 will definitely be maintained in excellent technical condition and more strictly tested in the service than in the Road Traffic Safety Directorate inspection. It will only be a formality that will have to be done twice as often. In fact, less frequent inspections are not something that Latvia would like to take over from Lithuania. Knowing that many people in Latvia use their car to the point of breaking and do something about the car only before the show, then we will all feel safer if such cars are inspected every year. Brand new cars already in Latvia are inspected only once every two years.
I will admit that my 4.4 liter V8 biturbo engine is able to consume buckets of fuel and emits a lot of emissions. As a result, my road tax in Latvia would be € 600 per year. In Lithuania, emissions cost around € 150 and are a one-off payment. Next time it will be paid by the next owner (if any). And the operating tax is already included in the price of fuel. Brilliant! This is a system that Latvia could borrow from our neighbors. If you drive more and burn more public roads, then you also pour more fuel and pay more road taxes. In Latvia, the tax is determined on the engine volume and power, but also in this case, if you have a more powerful car with a larger engine, you consume more fuel and pay more taxes. Immigrants also pay their share of the tax when driving on Lithuanian roads and filling up. And it all seems fair. For example, I have a friend who has several cars, and some are collector cars with a large engine that are only moved a few times a year. In any case, no one can drive multiple cars at the same time. In my opinion, it is not objective that such cars should pay as much tax as those who travel on the streets every day of the year. My friend pays a fairly large amount of taxes on each of his cars each year, although in reality the car is parked in the garage and only waiting for the rare day when it will go on an emotional journey. This is another example where a road tax included in the price of fuel would be much more reasonable. Despite the higher tax during the inspection, fuel costs more in Latvia than in Lithuania. I remember that some time ago in Latvia the possibility of introducing a similar system as in Lithuania was discussed, but at that time such a model was not rejected with the argument that poor lawn mowers and other equipment that does not travel on state roads will still have to pay road tax. I did not know that Latvians are such very active lawn mowers, which makes up a large enough number of fuel consumers. Maybe I should start a new business and start selling lawn mowers? In any case, at that time this argument was strong enough for Latvia to stick to its distressed system.
Another thing that surprised me was the KASKO prices in Lithuania. There, KASKO costs a little over 1,000 euros for my car, while in Latvia, KASKO costs over 2,000 euros for an acquaintance with the same year's BMW M5 model. And in Lithuania, in case of KASKO repairs, new parts are paid for. Meanwhile in Latvia, for example, if a mirror is stolen from you, KASKO will make you look for used ones in the local market, and in this way it is very possible for SS.COM to find your own, recently stolen, mirrors. Because who else will sell a used mirror, if not a thief who has recently acquired it.
There is already a possibility that someone will laugh that I was driving an M6, but can't afford to register it in Latvia? I can immediately tell everyone that I did not buy my car on lease or borrowed money elsewhere. I think leasing could afford even better. I don't like financial commitments and I'll probably explain in more detail in another article why I don't buy anything on credit, lease or installment.
The next day after the party, where I decided to buy an M6, I got to talk to another friend who has an international business and an expensive car with LT registration numbers. He told me that if you buy an expensive car in Latvia without leasing it, your car can be seized by the State Revenue Service until you prove with what means you bought it. And this, as well as the fact that I had recently opened a branch for my business in Lithuania, were the main reasons why I decided to pick up the car in the name of my Lithuanian company. I have already mentioned that my business, even before the Covid crisis, did not bring me any big profits. In fact, it was barely afloat, although all my friends consider me a very successful entrepreneur.
And continuing to maintain the story of a successful business is much easier than explaining to everyone that I have researched and perfected a successful strategy for online casinos to make me money. I understand it can only be believed if you see it with your own eyes. And I don't have time to explain it on the street, at birthday parties and family meetings. So I have my website that explains everything for those who are willing to spend time and research.
I would also like to mention another factor that favored me for registering a car and paying taxes in Lithuania. I have a huge resentment towards the VID and our country as a whole. For example, when the first covid wave started, I also applied for a support program, because covid also affected my business in the most direct way. It turns out that in order to receive state support, you need a fairly strong accountant and instead of support, I initially received an VID audit. Even on another occasion as a result of recalculations, the company accumulated a minimum tax debt - 20 EUR. I was not worried about such a small amount and I thought that next time I will pay taxes everything will be equalized, I ended up receiving a fine of 115 EUR for this. Is this normal ?! When I called a friend who is working at the VID , she admitted to me that they also have plans for how much to fine every year! And therefore, if there is such an opportunity and the plan is not sufficiently implemented, they tend to impose fines even on such amounts.
Another story about the VID was in my first year as an entrepreneur. There was a time when I had to pay quarterly taxes (then I still had a micro company), but my clients were late in paying for the services. At the time, the company's account was exactly enough to pay either quarterly taxes or employees' salaries. I, too, was a salaried employee at the time, who also wanted to eat and exist. So I wanted to take this opportunity and wrote a request that I would like to split or pay the quarterly taxes a little later this time. The VID replied that it was not possible and I had to pay everything on time. It is good that on the last day money came in from the client and the ability to pay everything at once.
I am also aware that this is not an unequivocal issue, and there are people who believe that my strategy of evading Latvian road tax is unethical. Everyone can choose whether this is acceptable to them, I can only say that it is a completely legal option. I admit that many would do the same, if they were interested enough to study the laws and set up a working company in Lithuania.
However, if someone had told me what difficulties due to covid I would have to face and the fact that I would receive my beast in the form of M6 only after several months, I would have chosen to register it in Latvia anyway. At the beginning of March, I finally got my dream car. Comfort, speed and 100% true driving pleasure - being at the wheel of this car, more than anything else, can make me smile and truly joyful. At the same time, the power of this vehicle makes driving serious, and with every moment spent behind the wheel of this car, I feel like I am becoming a better driver. In addition to how I made sure during the Liepāja road trip, by pressing on the accelerator pedal, this car makes even Anna shut up (joke, but the truth). In short - I'm really excited about my car!
Concluding my thoughts, I am also glad that my car is registered in Lithuania and I pay less in taxes. European Union allows me to do so. I do not break any law, and at the same time I pay less tax, insurance, and technical inspection costs, so I believe that this act for me is not only logical, but even economic.
As I said before, I am aware that this is not an unequivocal issue. And I assume that many of you may have a different opinion. Therefore, I would be very interested in your thoughts on this matter. Is car registration in Lithuania, even though it will be operated primarily in Latvia, morally acceptable, or not?
I hope that the times will come when public authorities will realize that the more friendly they are to the people of the country, the more loyal they will be to them. Then people will not look for an opportunity to get around formalities and will rather pay all the taxes in this country.
This time I want to tell you a little more about my new car. To those who have not read the previous articles, I can briefly explain that several months ago, at a party, I met a guy who sells cars from Germany. As the car theme was close to both of us, we quickly found a common language. He showed me a very beautiful and good 2013 BMW M6 Gran Coupe, which was still in Germany at the time. Due to emotions and alcohol, I was ready to buy that car that evening. Okay, it may not have been such a spontaneous decision, because I had been thinking about buying a new car for some time and the M5 and M6 models in their price range were the fulfillment of all my dreams. I just needed to find the right offer.
If the car had already been in Latvia that day, I would definitely have dragged that guy behind the hood (he was in a black hoodie at the party and reminded me of a PRO poker player rather than a typical party-goer) to the Road Traffic Safety Directorate the next morning, but since that car was still in Germany, I had time to think and consult. More about how to buy this car, because I had already decided in my head that the car would be mine.
So why did I choose to register the car in Lithuania? This is what everyone who sees LT number plates asks me. In fact, the benefits are quite a lot. First, the inspection in Lithuania must take place every two years. I have no difficulty going to the Road Traffic Safety Directorate every year, but the nearest Lithuanian Road Traffic Safety Directorate is also about an hour's drive from Riga. The relatively new M6 will definitely be maintained in excellent technical condition and more strictly tested in the service than in the Road Traffic Safety Directorate inspection. It will only be a formality that will have to be done twice as often. In fact, less frequent inspections are not something that Latvia would like to take over from Lithuania. Knowing that many people in Latvia use their car to the point of breaking and do something about the car only before the show, then we will all feel safer if such cars are inspected every year. Brand new cars already in Latvia are inspected only once every two years.
I will admit that my 4.4 liter V8 biturbo engine is able to consume buckets of fuel and emits a lot of emissions. As a result, my road tax in Latvia would be € 600 per year. In Lithuania, emissions cost around € 150 and are a one-off payment. Next time it will be paid by the next owner (if any). And the operating tax is already included in the price of fuel. Brilliant! This is a system that Latvia could borrow from our neighbors. If you drive more and burn more public roads, then you also pour more fuel and pay more road taxes. In Latvia, the tax is determined on the engine volume and power, but also in this case, if you have a more powerful car with a larger engine, you consume more fuel and pay more taxes. Immigrants also pay their share of the tax when driving on Lithuanian roads and filling up. And it all seems fair. For example, I have a friend who has several cars, and some are collector cars with a large engine that are only moved a few times a year. In any case, no one can drive multiple cars at the same time. In my opinion, it is not objective that such cars should pay as much tax as those who travel on the streets every day of the year. My friend pays a fairly large amount of taxes on each of his cars each year, although in reality the car is parked in the garage and only waiting for the rare day when it will go on an emotional journey. This is another example where a road tax included in the price of fuel would be much more reasonable. Despite the higher tax during the inspection, fuel costs more in Latvia than in Lithuania. I remember that some time ago in Latvia the possibility of introducing a similar system as in Lithuania was discussed, but at that time such a model was not rejected with the argument that poor lawn mowers and other equipment that does not travel on state roads will still have to pay road tax. I did not know that Latvians are such very active lawn mowers, which makes up a large enough number of fuel consumers. Maybe I should start a new business and start selling lawn mowers? In any case, at that time this argument was strong enough for Latvia to stick to its distressed system.
Another thing that surprised me was the KASKO prices in Lithuania. There, KASKO costs a little over 1,000 euros for my car, while in Latvia, KASKO costs over 2,000 euros for an acquaintance with the same year's BMW M5 model. And in Lithuania, in case of KASKO repairs, new parts are paid for. Meanwhile in Latvia, for example, if a mirror is stolen from you, KASKO will make you look for used ones in the local market, and in this way it is very possible for SS.COM to find your own, recently stolen, mirrors. Because who else will sell a used mirror, if not a thief who has recently acquired it.
There is already a possibility that someone will laugh that I was driving an M6, but can't afford to register it in Latvia? I can immediately tell everyone that I did not buy my car on lease or borrowed money elsewhere. I think leasing could afford even better. I don't like financial commitments and I'll probably explain in more detail in another article why I don't buy anything on credit, lease or installment.
The next day after the party, where I decided to buy an M6, I got to talk to another friend who has an international business and an expensive car with LT registration numbers. He told me that if you buy an expensive car in Latvia without leasing it, your car can be seized by the State Revenue Service until you prove with what means you bought it. And this, as well as the fact that I had recently opened a branch for my business in Lithuania, were the main reasons why I decided to pick up the car in the name of my Lithuanian company. I have already mentioned that my business, even before the Covid crisis, did not bring me any big profits. In fact, it was barely afloat, although all my friends consider me a very successful entrepreneur.
And continuing to maintain the story of a successful business is much easier than explaining to everyone that I have researched and perfected a successful strategy for online casinos to make me money. I understand it can only be believed if you see it with your own eyes. And I don't have time to explain it on the street, at birthday parties and family meetings. So I have my website that explains everything for those who are willing to spend time and research.
I would also like to mention another factor that favored me for registering a car and paying taxes in Lithuania. I have a huge resentment towards the VID and our country as a whole. For example, when the first covid wave started, I also applied for a support program, because covid also affected my business in the most direct way. It turns out that in order to receive state support, you need a fairly strong accountant and instead of support, I initially received an VID audit. Even on another occasion as a result of recalculations, the company accumulated a minimum tax debt - 20 EUR. I was not worried about such a small amount and I thought that next time I will pay taxes everything will be equalized, I ended up receiving a fine of 115 EUR for this. Is this normal ?! When I called a friend who is working at the VID , she admitted to me that they also have plans for how much to fine every year! And therefore, if there is such an opportunity and the plan is not sufficiently implemented, they tend to impose fines even on such amounts.
Another story about the VID was in my first year as an entrepreneur. There was a time when I had to pay quarterly taxes (then I still had a micro company), but my clients were late in paying for the services. At the time, the company's account was exactly enough to pay either quarterly taxes or employees' salaries. I, too, was a salaried employee at the time, who also wanted to eat and exist. So I wanted to take this opportunity and wrote a request that I would like to split or pay the quarterly taxes a little later this time. The VID replied that it was not possible and I had to pay everything on time. It is good that on the last day money came in from the client and the ability to pay everything at once.
I am also aware that this is not an unequivocal issue, and there are people who believe that my strategy of evading Latvian road tax is unethical. Everyone can choose whether this is acceptable to them, I can only say that it is a completely legal option. I admit that many would do the same, if they were interested enough to study the laws and set up a working company in Lithuania.
However, if someone had told me what difficulties due to covid I would have to face and the fact that I would receive my beast in the form of M6 only after several months, I would have chosen to register it in Latvia anyway. At the beginning of March, I finally got my dream car. Comfort, speed and 100% true driving pleasure - being at the wheel of this car, more than anything else, can make me smile and truly joyful. At the same time, the power of this vehicle makes driving serious, and with every moment spent behind the wheel of this car, I feel like I am becoming a better driver. In addition to how I made sure during the Liepāja road trip, by pressing on the accelerator pedal, this car makes even Anna shut up (joke, but the truth). In short - I'm really excited about my car!
Concluding my thoughts, I am also glad that my car is registered in Lithuania and I pay less in taxes. European Union allows me to do so. I do not break any law, and at the same time I pay less tax, insurance, and technical inspection costs, so I believe that this act for me is not only logical, but even economic.
As I said before, I am aware that this is not an unequivocal issue. And I assume that many of you may have a different opinion. Therefore, I would be very interested in your thoughts on this matter. Is car registration in Lithuania, even though it will be operated primarily in Latvia, morally acceptable, or not?
I hope that the times will come when public authorities will realize that the more friendly they are to the people of the country, the more loyal they will be to them. Then people will not look for an opportunity to get around formalities and will rather pay all the taxes in this country.
21.05.21
Lifestyle