Lithuanian VAT rates and VAT compliance

As an EU member state, Lithuania follows EU rules on value added tax (VAT) compliance. Lithuanian VAT is administered by the State Tax Inspectorate (Valstybinė mokesčių inspekcija – VMI).

 
Lithuania applies a standard VAT rate, alongside reduced rates and zero-rating for specific goods and services. 

Businesses registered for VAT in Lithuania must apply the correct VAT rate to taxable supplies and remit the tax to VMI by submitting periodic VAT returns. 

Some supplies are exempt from VAT in Lithuania. These commonly include: 

• Certain financial and insurance services 
• Healthcare and medical services 
• Education and vocational training 
• Certain cultural and nonprofit activities 
• Residential rental of immovable property 

Exempt supplies do not generate output VAT and generally do not allow recovery of input VAT related to those activities. 

A VAT number is required for businesses carrying out taxable activities in Lithuania. 

Lithuanian-established businesses must register for VAT once annual taxable turnover exceeds €45,000 within a 12-month period. Below this threshold, registration is not mandatory unless specific taxable transactions trigger compulsory registration.

Non-established (foreign) businesses making taxable supplies in Lithuania must generally register for VAT from the first taxable supply. There is no turnover threshold for nonresidents. 

For cross-border B2C supplies of goods and services within the EU, the EU One-Stop Shop (OSS) threshold of €10,000 applies. Once exceeded, Lithuanian VAT must be charged, or the supplier may elect to use the OSS scheme.  

Get more information on VAT registration in Lithuania. 

VAT-registered businesses in Lithuania must file monthly VAT returns. Returns include output VAT on sales and recoverable input VAT on purchases. 

In addition to VAT returns, businesses may also be required to submit EC Sales Lists (EU Sales Lists) and Intrastat declarations (for intra-EU goods movements above thresholds). 

All filings are submitted electronically through VMI’s online systems (My VMI/EDS). 

Get more information on VAT returns in Lithuania. 

Foreign businesses storing goods in Lithuania must consider VAT registration if those goods are held for sale. 

Holding inventory in Lithuania for resale typically triggers VAT registration obligations. Imports from outside the EU may also trigger VAT registration, particularly where the foreign business acts as importer of record. 

Lithuania applies EU call-off stock simplification rules in line with the EU VAT Directive. 

VAT is generally payable on the importation of goods into Lithuania.

• Import VAT is due at customs clearance. 
• VAT-registered businesses may recover import VAT as input VAT if the goods are used for taxable activities. 
• Lithuania operates postponed accounting for import VAT, allowing eligible VAT-registered businesses to account for import VAT in their VAT return rather than paying it upfront at customs.  

Foreign businesses supplying digital services (telecommunications, broadcasting, and electronically supplied services) to Lithuanian consumers must charge Lithuanian VAT once the €10,000 EU-wide B2C threshold is exceeded, unless they elect to use the One-Stop Shop (OSS) scheme. 

The standard VAT rate of 21% generally applies. Businesses must register for Lithuanian VAT or use OSS depending on their cross-border supply model. 

EU-established businesses may reclaim Lithuanian VAT through the EU VAT refund procedure via their home tax authority, generally by 30 September of the following year. 

Non-EU businesses may reclaim Lithuanian VAT under the 13th Directive refund procedure, subject to reciprocity and documentation requirements. 

Some foreign businesses making only reverse-charge supplies may not be required to register locally and may instead rely on simplified recovery mechanisms. 

Lithuania applies zero-rating to qualifying exports of goods and certain services supplied outside the EU. Zero-rating allows VAT to be charged at 0% while preserving the right to recover related input VAT, provided documentary requirements are met. 

Lithuania does not operate a special export VAT authorisation scheme comparable to Ireland’s Section 56 system. 

Intrastat declarations monitor intra-EU trade in goods. Lithuanian VAT-registered businesses must submit Intrastat filings if annual thresholds set by the Lithuanian authorities are exceeded. 

• Reporting is typically monthly once thresholds are exceeded.
•  Filings include commodity codes, values, quantities, and partner member state details. 
• Submissions are made electronically through the designated statistical reporting systems. 

Lithuania requires EC Sales Lists for supplies of goods and certain services to VAT-registered customers in other EU member states. 

Details typically include: 

• Customer VAT identification numbers 
• Total value of goods or services supplied 
• Transaction type 

ESLs must be filed electronically with VMI, generally on a monthly basis. 

Lithuania operates an electronic tax reporting system known as i.MAS (Išmanioji mokesčių administravimo sistema).

The i.MAS platform includes several subsystems designed to enhance VAT monitoring and audit capabilities: 

• i.SAF (Standard Audit File for Tax – SAF-T): VAT-registered businesses must submit structured invoice register data (sales and purchase registers) in SAF-T XML format on a monthly basis. 
• i.VAZ: Requires electronic reporting of domestic goods movements above certain thresholds. 
• i.SAF-T (on-demand SAF-T): Upon request by VMI, businesses may be required to submit a full SAF-T file containing detailed accounting data for audit purposes. 

These digital reporting requirements operate alongside VAT return filings and significantly increase transaction-level transparency for the tax authority. 

Noncompliance with i.MAS reporting obligations may result in penalties and increased audit risk. 

Businesses must issue VAT-compliant invoices that include: 

• Supplier and customer details 
• VAT number(s)
•  Description of goods or services 
• VAT rate(s) and VAT amount 

Lithuania does not operate a real-time invoice clearance system, but invoice data must be reported through i.SAF as part of the i.MAS system. 

Time-of-supply rules: 

• Goods: VAT generally becomes chargeable when the goods are delivered or the invoice is issued, whichever occurs first. 
• Services: VAT is generally due when the service is supplied or when payment is received, depending on the circumstances.
•  Imports: VAT is due at customs clearance (unless postponed accounting applies). 

VAT records must generally be retained for 10 years. VAT returns and payments are generally due by the 25th day of the month following the reporting period.