Country Guide: Lithuania
Looking to expand your e-commerce business to Lithuania, then look no further, here is AVASK's guide to VAT in Lithuania:
VAT in Lithuania
Lithuania is a member of the European Union (EU) and draws up its tax rules according to the laws or directives issued from Brussels by the EU. The current VAT directive applies to all 27 member states of the European Union, and it governs the rules on VAT compliance, and in some part, covers the setting of VAT rates.
As an EU member state, Lithuania is obliged to implement the VAT directives, which provides guidance on VAT. Where there is a conflict, the European Union’s directive takes precedence. Lithuania is a member of the European single market economy and uses the Euro (€) for its currency. In Lithuania VAT is known as: Pridėtinės vertės mokestis, or PVM.
VAT registration in Lithuania
Both EU and non-EU businesses may trade in Lithuania without establishing a local presence. This is known as non-resident VAT trading. There is no VAT threshold in Lithuania for the registration of non-resident traders, but you will need one to record transactions and your Lithuanian customers will want proof that you have obtained one.
There are strict rules on the situations where VAT registration is permitted. Common scenarios that require Lithuanian VAT registration include:
- Importing goods into Lithuania;
- Organising live events, conferences, etc. in Lithuania;
- Holding goods in a warehouse in Lithuania as stock for resale;
- Buying goods within Lithuania that are subsequently re-sold in-country;
- Selling goods from Lithuania to other EU member states;
- Distance-selling to private individuals in Lithuania, e.g. internet retailing or trading through an e-commerce platform.
Registering for Lithuanian VAT generally takes around a week once all documentation has been submitted to the tax authority, but this varies from seller to seller and will depend on the specifics of an individual company.
Lithuanian VAT compliance
There are detailed rules controlling the recording and processing of Lithuanian transactions for VAT purposes. This includes guidelines on:
- Lithuania invoice requirements;
- When to issue a Lithuanian tax invoice;
- Foreign currency reporting;
- Credit notes and corrections;
- Correcting entries from prior returns;
- Which accounting records must be maintained.
Lithuanian VAT rates
|VAT Rate||% Rate|
Country Profile: Lithuania
Lithuanian E-commerce facts:
|Number of e-commerce users:||2 million
|Revenue in e-commerce market:||£595 million|
|Estimated market growth:||6.2% to £758 million by 2024|
Lithuanian thresholds and additional summary:
|Distance Selling Threshold (DST)||€35,000|
|VAT number format:||LT 123456789
|VAT return period:
||Monthly or bi-annually|
|VAT return deadline||25th day of the month following period end|
|Annual VAT filing deadline:||Not required|
|EC sales lists reporting||Monthly|