VAT in Lithuania

Updated on Tuesday 08th January 2019

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VAT-in-Lithuania.jpgThe 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 rates of the VAT in Lithuania

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:

  • -          the standard rate which applies to most products and services is established at 21%;
  • -          a reduced rate of 9% applies to good and services like local transport and tourism services;
  • -          a reduced rate of 5% applies to pharmaceutical products and medical equipment;
  • -          a 0% rate applies to the import and export of intra-community products and international transport activities.

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.

Complying with the VAT 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.

Meet us in Vilnius

Call us now at +370 52430344 to set up an appointment with our lawyers in Vilnius, Lithuania. Alternatively you can incorporate your company without traveling to Lithuania.

As our client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Lithuania.

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