VAT

Welcome to the presentation of value added tax (VAT) in Lithuania.

Taxable transactions

Lithuania is a Member State of the European Union (EU) and its VAT system similar to other VAT systems throughout the EU. VAT applies on the sale of goods and the provision of services, intra-EU acquisitions and the import of goods.

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VAT registration of residents

VAT registration is mandatory for Lithuanian individuals or businesses whose annual turnover exceeds 45 000 EUR.  Voluntary registration is possible without threshold. Lithuanian and foreign taxable persons, or legal persons that are not taxable persons, also must register as VAT payers in Lithuania if they acquire goods in Lithuania from another EU member state and the value of such goods exceeds 14 000 EUR in the  calendar year.

VAT registration of foreign taxable persons

The turnover threshold does not apply to foreign companies. Businesses and individuals without a residence in Lithuania must register for VAT or designate a fiscal agent in case they are going to engage in an activity in Lithuania which is subject to VAT. The requirement to designate a fiscal agent is not applicable to taxable persons established in other EU Member States who may directly register for VAT in Lithuania or non-EU entities acting via a fixed establishment.

VAT rates

The standard rate of VAT in Lithuania is 21%, with reduced rates of 5% and 9%.

The reduced 5% VAT rate is applied to:

  • Medical products and medical purposes products, subject to full or partial compensation from the state medical insurance budget and to non-reimbursable prescription drugs;
  • Equipment for disabled persons’ technical assistance as well as to repairs of such equipment;
  • Supply of books and printed non-periodical materials, as well as journals and magazines.

The reduced 9% VAT rate is applied to:

  • Heating and hot water supplies to residential premises;
  • Public transport;
  • Accommodation at hotels.

VAT returns and payments

Monthly VAT returns must be filled in and VAT must be paid by the 25th day of the following month.

  • Find out more about corporate taxation in Lithuania here.
  • Find out more about establishing a company in Lithuania here.