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Key takeaways
- Lithuania VAT rates: The standard VAT rate is 21%, with reduced rates of 9% and 5%, plus a 0% rate for intra-EU and international transport.
- Registration threshold: Businesses must register once turnover exceeds €45,000, while non-EU companies are required to appoint a fiscal representative.
- Filing & penalties: VAT returns are filed monthly, quarterly, or bi-annually, with late filings fined up to €390 and daily interest on unpaid VAT.
If you’re planning to expand your business into Lithuania, it’s important you have a good understanding of the local Value Added Tax (VAT) system. This guide provides essential information about the Lithuania VAT system to help you navigate the complexities of VAT compliance there.
What is the Lithuania VAT Rate?
In Lithuania, VAT is known as Pridėtinės vertės mokestis (PVM). Lithuania has a standard VAT rate of 21% and two reduced rates of 9% and 5%. There is also a 0% Lithuania VAT rate for intra-community and international transport.
Registering for VAT in Lithuania
Businesses based in Lithuania with an annual turnover exceeding €45,000 must register for VAT. There is no threshold for non-resident companies.
The EU-wide distance selling threshold of €10,000 applies in Lithuania. Any business exceeding this limit in cross-border trade is required to register for Lithuanian VAT. If you store goods in Lithuania or participate in a fulfillment program, such as FBA (Fulfilled-by-Amazon), which includes Lithuania, VAT registration is also mandatory.
The registration process involves submitting the necessary forms and documentation to the Lithuanian State Tax Inspectorate. Once the application has been received and processed, a unique Lithuania VAT number will be issued to the company within four weeks.
Fiscal representative in Lithuania
Non-EU businesses must appoint a fiscal representative in Lithuania. This representative will be jointly responsible for the company’s Lithuania VAT compliance.
Lithuanian VAT return filing and penalties
In most cases, Lithuania VAT returns are filed monthly. Quarterly filing options are available for smaller businesses with an annual turnover of less than €300,000, while businesses with sales not exceeding €60,000 in a calendar year can file bi-annually.
The deadline for filing is the 25th of the month following the reporting period, and all VAT returns must be submitted electronically.
Penalties for late filing or payment include fines and interest charges. A missed Lithuania VAT return will incur a fine of between €200 to €390 and a daily interest charge of 0.03% will be imposed for any unpaid VAT due.
Lithuanian Intrastat declarations
Both resident and non-resident businesses engaged in trade within the EU must file Intrastat declarations if certain thresholds are met. The threshold for Intrastat declarations in Lithuania is €500,000 for arrivals and €300,000 for dispatches. The deadline for submission of declarations is the 10th of the month following the supply of goods.
Reverse charge in Lithuania
The reverse charge mechanism in Lithuania applies to certain goods and services, shifting the VAT payment responsibility from the supplier to the recipient. This mechanism is commonly used in cross-border transactions within the EU, for specific industries, and for some domestic supplies.
Frequently asked questions
What is the VAT rate in Lithuania?
Lithuania’s standard VAT rate is 21%, with reduced rates of 9% (for transport, hotels, restaurants, and books) and 5% (for medicines, medical devices, and newspapers). A 0% rate applies to intra-EU and international transport.
When do I need to register for VAT in Lithuania?
Resident businesses must register once annual turnover exceeds €45,000. There is no threshold for non-resident businesses. The EU-wide distance selling threshold is €10,000.
How do I register for VAT in Lithuania?
Applications are submitted to the Lithuanian State Tax Inspectorate. Once approved, your business will receive a Lithuanian VAT number within around four weeks.
Do foreign businesses need a fiscal representative in Lithuania?
Yes. Non-EU companies must appoint a fiscal representative, who is jointly liable for VAT compliance and payments.
How often must VAT returns be filed in Lithuania?
- Monthly – standard frequency for most businesses
- Quarterly – if annual turnover is below €300,000
- Bi-annually – if annual turnover is below €60,000
Returns must be filed electronically by the 25th of the following month.
Are Intrastat declarations required in Lithuania?
Yes. Intrastat returns are required if annual EU trade exceeds €500,000 (arrivals) or €300,000 (dispatches). Submissions are due by the 10th of the following month.
