Lithuanian VAT

Lithuania introduced Value Added Tax in 1994. Lithuania joined the EU in 2004 and as an EU member state its rules on Lithuanian VAT registrations, returns and compliance are based on European Union EU VAT Directives. The tax is administered by the State Tax Inspectorate (STI) under the authority of the Republic of Lithuanian Ministry of Finance.

Foreign companies, or ‘non-resident’ traders, providing goods or services in Lithuania to local businesses or consumers may have to register their business for Lithuanian VAT. They will then have to follow the Lithuanian VAT compliance rules, including invoicing and VAT rates, as well as pay over any Lithuanian VAT due.

Should you register for Lithuanian VAT

There are a number of trading situations which typically require a foreign trader to register with the Lithuanian tax authorities. These follow the broad EU VAT rules, and include:

  • Importing goods into Lithuania from another country from outside the EU
  • Moving goods between Lithuania and other EU member states (intra-community supplies), either as sales (dispatches) or purchases (arrivals)
  • Buying and selling goods in Lithuania
  • Selling goods over the internet to Lithuanian consumers, subject to the Lithuanian distance selling VAT registration threshold
  • Goods held in consignment stock
  • Holding live exhibitions, events or training in Lithuania
  • If a company is otherwise a non-VAT trader, but is receiving services in Lithuania under the reverse charge rule
  • The self-supply of goods

Few companies need to VAT register if they are providing services to local Lithuanian companies, and instead can use the Reverse Charge process. This is based on the 2010 VAT Package changes.

Note that providers of electronic, broadcast or telecoms services to consumers in Lithuania only have to VAT register in one EU country under the MOSS scheme to file a single return covering all 28 member states.

If you do need to VAT register, read our Lithuanian VAT registration briefing to understand the requirements, including the VAT registration thresholds. You can read more about Lithuanian VAT returns too.

There may be further exemptions from the requirement to VAT register in Lithuania you should consider. Please read our Lithuanian VAT Reverse Charge briefing.


Latest Lithuanian news

EU moves new B2C VAT liabilities to marketplaces 2021

December 12, 2018

On 12 December, the European Commission published details of a new rule which would make large online marketplaces responsible for calculating, collecting and remitting VAT on certain B2C cross-border transactions below €150. Where goods are imported by an EU or non-EU merchant, and then sold via a marketplace in another EU country..

Lithuania cuts food VAT

August 29, 2018

Lithuania has proposed reclassificying foodstuffs from the 9% reduced VAT rate to 5%. The standard VAT rate in the Baltic state is 21%. The...

Digitisation of VAT Reporting

April 5, 2018

European countries are increasingly demanding detailed electronic VAT transactional reporting from businesses to help them efficiently track tax due and reduce significant tax evasion....