Lithuania to offer cash-based VAT accounting
- Mar 28, 2015 | Richard Asquith
Lithuania is proposing to introduce cash accounting for VAT reporting before the end of 2015.
The scheme will be available only to small enterprises – with an annual turnover below €60,000. If a company or taxable individual wished to adopt cash accounting they must first apply for permission to the tax authorities.
The scheme will enable accepted companies to only have to pay Lithuanian VAT receipts to the tax authorities when the cash is actually received. This is opposed to accruals based accounting for VAT which is based on the date of the supply of the services/goods or invoice date.
Many European Member states have introduced cash-based VAT reporting to help small start-up’s manage their cash flow more efficiently.