The Lithuanian taxation system is based on direct taxes which are imposed on the incomes of Lithuanian citizens, residents and companies and indirect taxes. One of the indirect taxes is the value added tax, which is applied to the consumers of goods and services while being collected by the suppliers of those goods and services.
The value added tax in Lithuania falls under the law with the same name which was introduced in 1960 and which went under several modifications over the years. The last amendment to the Value Added Tax Act was brought in 2002.
Our company formation agents in Lithuania can offer more information on the VAT.
The Lithuanian value added tax is imposed at various rates depending on the goods and services provided by companies operating here.
The following VAT rates apply in Lithuania at the moment:
In order to collect the VAT, companies in Lithuania must register with the tax authorities.
Foreign investors can rely on our local advisors if they want to open a company in Lithuania.
In order to become VAT compliant, a Lithuanian company must register with tax authorities when the company registers with the Trade Register or after a threshold of income has been reached.
The company will be required to collect the VAT and forward it to the tax authorities by filing monthly VAT reports with the local tax office. In order to collect the VAT, the company is required to issue invoices which indicate the rate and the amount of money collected as a value added tax.
Lithuanian companies must also comply with the EU’s directive related to the payment and collection of the VAT.
For accounting services related to the VAT and assistance in setting up a company in Lithuania, please contact our local company registration representatives.