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Lithuania

 

News & Tips

Introduction of the euro [News 01/01/2015]

Lithuania will adopt Euro with effect from January 1st, 2015. The conversion rate has been fixed as follow: 1 EUR = LTL 3.45280.


Intrastat threshold for deliveries and arrivals [News 01/01/2016]

As from 01/01/2016, intrastat threshold for deliveries will be decreased to € 200,000 and for arrivals to €  280,000.


Distance Selling Threshold [News 01/01/2015]

Following Lithuania’s adoption of the Euro, the Distance Selling threshold has changed from LTL 125,000 to EUR 35,000 as of 01/01/2015.


New reduced VAT rate on hotel accommodation services [01/01/2015]

Lithuania has reduced the VAT rate of hotel accommodation service to 9%.


New local reverse charge in the construction sector [01/07/2015]

As from 01/07/2015, a new local reverse charge will be applicable in the construction sector provided the client is VAT registered in Lithuania.


DOING BUSINESS IN LITHUANIA [LT] - VAT GUIDE

 

General

VAT Directive

Lithuania

What is the structure of the VAT number?

Each individual VAT identification number shall have a prefix in accordance with ISO code 3166 - alpha 2 - by which the Member State may be identified.

 

Lithuanian VAT numbers have 12 characters [LT + 12 digits]. The 12 digits consist of a unique combinaison of 10 digits, a VAT index "1" and a VAT payer code control digit. The first number is "1" and the last digit constitutes a control number.

 

What is the local name of the tax?

 

Pridetines Vertes Mokestis [PVM]

 

VAT rate

VAT Directive

Lithuania

 VAT rates

Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services.

Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.

 

Lithuania applies a standard VAT rate of 21% and two reduced VAT rates: 5% and 9%.

See VAT rates applied in the EU.  

VAT return

VAT Directive

Lithuania

How is the tax period determined? 

The tax period shall be set by each Member State at one month, two months or three months.

Member States may, however, set different tax periods provided those ones do not exceed one year. 

Monthly/Semi-annual

Your company has to report its VAT position by filing periodical VAT returns [Form FR0600] on a monthly basis [standard tax period].

Bi-yearly reporting period can be opted for if your annual turnover of the preceding year does not exceed LTL 200.000 [+/- € 58.000].

 

When should periodical VAT return be filed?

The VAT return shall be submitted by a deadline to be determined by Member States.

That deadline may not be more than two months after the end of each tax period.

 

Periodical VAT returns must be submitted by electronic means to Lithuanian VAT authorities before the 25th day of the month [25 of N+1] following the tax period. 

Statement

VAT Directive

Lithuania

Annual recapitulative statement

Is this requirement laid down in the country and what is the filing deadline?

Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year.

That return shall provide all the information necessary for any adjustments.

 

No

Recapitulative statement of intra-EU supply of goods [European Sales Listing - ESL]

Are quarterly filings allowed by the country and what is the filing deadline?

The recapitulative statement shall be drawn up for each calendar month.

However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency.

The recapitulative statement shall be submitted within a period not exceeding one month.

 

The recapitulative Statement [ESL - VIES return] must be drawn up for each calendar month and submitted to local VAT authorities by the 25th of the month after the end of the reporting period [month].

Filing the statement on a quarterly basis is not possible.

Payment

VAT Directive

Lithuania

What is the payment deadline?

Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. 

Member States may, however, set a different date for payment of that amount.

 

 

The VAT due should be paid by filing deadline for the VAT return [before the 25th day of the month following the tax period].

Are interim payments required?

Member States may require interim payment to be made.

 No

VAT refund

VAT Directive

Lithuania

VAT refund for companies VAT registered in the country.

Is any VAT credit automatically carried forward or refunded?

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.

 

A VAT credit is in principle automatically carried forward to the next period, unless a tax refund has been applied for.

Special measures for foreign companies

VAT Directive

Lithuania

Optional reverse charge [art. 194 of the VAT Directive] for non-resident supplier.

SUPPLY OF GOODS

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is not applicable to major supplies of goods [with the exception for supplies of goods with installation and some other specific items]. A non-established provider supplying goods in Lithuania is therefore obliged to register and account for LT VAT accordingly.

Optional reverse charge [art. 194 of the VAT Directive] for non-resident provider  

SUPPLY OF SERVICES

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge does basically not apply to supplies of services carried out by suppliers not established in Lithuania.

Have simplification measures been taken to avoid registration of the foreign company for the goods held on consignment in the country?

 

No

Do special arrangements apply to "call-off-stock"?

 

Yes

Special arrangements apply for call-off-stock. Foreign taxpayers are therefore not VAT required to be registered in Lithuania provided the conditions are met.

 

Triangulation can be applied when the middleman (B) is VAT registered [as a non-established company] for others supplies in the 3rd country [Member State of destination]?  

Triangulation simplification measures cannot be applied even if the middleman B is VAT registered as a non-established company in Lithuania [Member State C].

 

VAT on import

VAT Directive

Lithuania

VAT warehousing regime

Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.

 

Lithuania has introduced VAT warehousing regime applicable under specific conditions.

VAT on importation – Postponed accounting via the VAT return.

Is it possible for a company to pay the import VAT via the periodical VAT return?

Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return  to be submitted.

 

Postponed accounting via the VAT return is possible. A deferred payment for VAT and customs [similar delay] is also possible under specific conditions.

 

Miscellaneous

VAT Directive

Lithuania

Intrastat Threshold  

Dispatches: € 170,000 

Arrivals : € 280,000 

Distance Sales - Threshold  

 € 35,000

See various thresholds applied in the EU

     

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