Lithuanian VAT returns

Any company registered with the Lithuanian tax authorities (see our Lithuanian VAT registration briefing) as a non-resident VAT trader must report taxable transactions through periodic filings, known as returns.

Like all EU member states, the Lithuanian VAT reporting calendar is on an annual basis. This requires an annual return. In addition, monthly VAT returns are generally required. If annual turnover in the preceding year was less than LTL200,000 (EUR60,000 from January 2015 when Lithuania will use the Euro as its main currency) a business may apply to submit bi-annual returns.

In addition to declaring sales or output VAT in the Lithuanian return, companies can offset this by the corresponding input or purchase VAT. There are some exceptions, including:

• Purchased or leased passenger cars (with some exceptions)
• Goods or services for entertainment
• Passenger transportation by car

Any Lithuanian monthly or bi-annual VAT filing is due on the 25th day of the month following the period end. Any Lithuanian VAT due must be paid at the same time.

If there are misdeclarations or late fillings of Lithuania VAT returns, foreign companies may be subject to penalties. Late filings are subject to small penalties and a charge of 0.03% per day of the VAT due if payment has been delayed. Penalties for incorrect VAT reporting range from 10 to 50% of the underpaid VAT depending on the circumstances. There is a five year statute of limitations for Lithuanian VAT, except in the case of fraud, where it is extended to eight years.

If there is a surplus of VAT inputs over outputs (more VAT incurred than charged), then a Lithuanian VAT credit arises. In theory, this is due back to the VAT registered business. The credit can be rolled over to the next filling or a company can apply for it to be refunded. Non-EU businesses are only eligible for a VAT refund if reciprocity exists between Lithuania and the country in which the business is established.