Lithuanian VAT rates and VAT compliance

Lithuanian VAT rates

Although Lithuania implements EU rules on VAT compliance, it may set its own standard, or upper, rate. The only proviso is that it is above 15%. Suppliers of goods or services VAT registered in Lithuanian must charge the appropriate VAT rate, and collect the tax for onward payment to the Lithuanian tax authorities through a VAT filling see Lithuanian VAT returns briefing.

The current rates are:

Lithuania VAT rates

RateTypeWhich goods or services
21%StandardAll other taxable goods and services
9%ReducedSome domestic passenger transport; hotel accommodation; district heating; books (excluding e-books); firewood
5%ReducedPharmaceutical products; medical equipment for disabled persons; newspapers and periodicals (some exceptions)
0%ZeroIntra-community and international transport

Lithuanian VAT compliance

Having registered for Lithuanian VAT, a business is required to adhere to the local VAT rules including:

  • Issuing invoices with the disclosure details outlined in the Lithuanian VAT Act.
  • Electronic invoices with proper signature, authenticity and agreement by the recipient.
  • Maintenance of accounts of record, which must be held for at least 10 years.
  • Correct invoicing of customers for goods or services in accordance with the Lithuanian time of supply VAT rules.
  • Processing of credit notes and other corrections.
  • Use of approved foreign currency rates.

What is the tax point for Lithuanian VAT?

The tax point, or time of supply, rules in Lithuania determine when the VAT is due. It is then payable to the tax authorities 25 days after the VAT reporting period end (usually monthly).

For goods where a VAT invoice has not been issued, i.e. most B2C transactions, the tax point is generally the physical supply of the goods or the payment, whichever is earlier. For goods supplies where an invoice is issued, i.e. most B2B transactions, the tax point is generally deemed to be the invoice date regardless of when the actual supply took place. For the supply of services where no VAT invoice is issued i.e. B2C services the tax point is usually the time when the service is delivered to the customer or the payment whichever takes place earlier. In the case of longer B2C services the tax point occurs when the service has been completed. For service supply where a VAT invoice is issued i.e. B2B services the tax point occurs on the invoice date regardless of when the supply occurred.