VAT in Lithuania
In July 2002, Lithuania implemented a value-added tax (VAT) system. Later, in 2004, Lithuania became a member of the European Union.
Regarding VAT regulations, Lithuanian law is subordinate to the EU VAT Directive. This means that Lithuanian VAT law can either be interpreted in line with the EU VAT Directive or directly incorporate its provisions. If necessary, Lithuanian courts have the option to seek guidance from the Court of Justice of the European Union (CJEU) to clarify the interpretation or constitutionality of Lithuanian VAT rules under EU VAT legislation.
Everything you need to know about VAT registration, returns, Tax Representation (if applicable), and your legal duties in Lithuania is conveniently located right here!
Selling in Lithuania?
Scope of Taxation
The scope of taxation under the VAT Law of Lithuania covers the entire jurisdiction of the country, including the adjacent area of territorial waters where Lithuania has authority over exploring and extracting natural resources, as per national and international regulations. Moreover, Lithuania has established seven free economic zones where a zero VAT rate may be applied.
As a general rule, transactions that are subject to taxation include the provision of goods and services.
The scope of the VAT in supplies includes:
- Providing goods.
- Providing services.
- Buying goods from other EU member states with specific conditions.
- Importing goods with certain conditions.
Supply of Goods
The act of transferring products to another individual or a third party, granting them the authority to control and use the products, is known as a supply of goods. Value Added Tax (VAT) is applicable to the following categories of transactions:
- When a taxable person supplies goods or services within Lithuania.
- When a taxable person acquires goods from another EU Member State through intra-Community procurement.
- When goods are imported from non-EU countries, irrespective of the importer’s status.
Download the Lithuanian VAT Guide
Lithuania – General VAT information
| Tax authority | The State Tax Inspectorate
|
| VAT in local language | Pridetines vertes mokestis (PVM) |
| Currency | € Euro |
| VAT number format | LT + 9 or 12 characters |
| LT123456789 or LT123456789012 | |
| VAT rates
|
Standard 21%; Reduced 9% and 5%; |
| Zero-rated (0%) and exempt | |
Thresholds |
|
| Registration | |
| Established | € 30, 000 |
| Non-established | None |
| Intra-EU Distance sales and electronically supplied services to consumers (OSS) | EUR 10,000 |
| VAT Group | Not Allowed |
| Voluntary Registration | Available- Those who are not residents and provide a taxable activity are not subject to a registration threshold |
| Intra-EU Dispatches | EUR 170,000 |
| Intra-EU Arrivals | EUR 280,000 |
| Recovery of VAT by non-established businesses | Yes |
Compliance Returns and Deadlines |
|
| VAT Returns | 25th of the month following the reporting period. |
| Frequency | Monthly, Quarterly, Semi-Annual |
| European Sales Listing | 25th of month following the reporting period |
| Intrastat | 10th of the month following the reporting period |
| Electronic Invoicing | Usually not compulsory under Article 79 of the VAT Law. However, the Law on Public Procurement, dated May 2, 2017, requires electronic invoicing for business-to-government (B2G) transactions. |
Last Updated: 03/11/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax