Who is required to register as a VAT payer?
Obtaining an EU VAT certificate and VAT registration applies to businesses that:
- import goods to the Lithuanian market
- conduct sales under the intra-community sale of goods or acquire goods from the territory of the European Union (intra-community acquisition of goods)
- make purchases and sales of goods in Lithuania
- store goods in Lithuania for resale
- conduct online sales directly to Lithuanian consumers above the EUR 10,000 annual limit (pan-European limit) and do not use OSS settlement
- organize live events, training courses, exhibitions, etc. in Lithuania
- are not VAT payers, but acquire services in Lithuania that are subject to the reverse charge procedure
- make their own delivery of goods.
Registration must be made at least three days before the date of the first taxable activity.
The accounting period is a calendar month, or six months for individuals who are VAT payers. A legal entity may apply to file VAT returns on a quarterly basis if its turnover did not exceed EUR 300,000 in the previous calendar year. An individual can apply for a monthly accounting period without turnover restrictions.
VAT returns must be submitted by the 25th of the next month following the end of the accounting period, and the VAT due must be paid by the same date.
If they file incorrect VAT returns and fail to meet the aforementioned reporting and VAT payment deadlines, foreign entities may face penalties from the tax authority. Businesses operating in Lithuania must also comply with local regulations regarding, among other things: invoicing and the archiving of books and records.
Currently, the following VAT rates apply in Lithuania:
- 21% – standard rate
- 5% & 9% – reduced rates (5% includes: medical equipment for the disabled, pharmaceutical products, newspapers and magazines; 9% includes: books (excluding e-books), passenger transportation, accommodation services, district heating, firewood)
- 0% rate applicable to intra-Community and international transportation
Services we provide in this country:
- VAT Registration
- VAT Settlements
- VAT Consulting