LOCAL VAT MEASURES FOR FOREIGN COMPANIES IN LITHUANIA
Do special arrangements apply to "call-off-stock" in Lithuania?
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.
Call-off stock refers to the situation where at the time of transport of goods to another Member State, the supplier already knows the identity of the person acquiring the goods to whom they will be supplied at a later stage and after arrival of the goods in the Member State of destination. This currently gives rise to a deemed supply (in the Member State of departure of the goods) and a deemed intra-Community acquisition (in the Member State of arrival of the goods), followed by a 'domestic' supply in the Member State of arrival and requires the supplier to be identified for VAT purposes in that Member State.
Simplification measures have been implemented in various Member States avoiding the VAT registration of the supplier in the country of destination.
Triangulation can be applied when the middleman (B) is VAT registered 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].
Chain transactions refer to successive supplies of goods which are subject to a single intra-Community transport. The intra-Community movement of the goods should only be ascribed to one of the supplies, and only that supply should benefit from the VAT exemption provided for the intra-Community supplies. The other supplies in the chain should be taxed and may require the VAT identification of the supplier in the Member State of supply.
However, the divergent approach amongst Member States in the application of these exemptions for cross-border transactions has created difficulties and legal uncertainty for businesses.
Optional reverse charge for supply of goods?
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 for supply of services
Reverse charge does basically not apply to supplies of services carried out by suppliers not established in Lithuania.
Optional reverse charge (art. 194 of the VAT Directive)
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.
VAT Warehousing implemented in Lithuania?
Lithuania has introduced VAT warehousing regime applicable under specific conditions.
VAT Directive
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.
Is it possible for a company to pay the import VAT via the periodical VAT return?
Postponed accounting via the VAT return is possible. A deferred payment for VAT and customs [similar delay] is also possible under specific conditions.
VAT DIrective
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.
VAT OBLIGATIONS IN LITHUANIA
How is the tax period determined in Lithuania?
Monthly/Semi-annual
In principle, the tax period of a legal person is a calendar month and tax period of a natural person is a calendar half-year. Your company has therefore 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).
The legal person can now ask to submit its VAT return on a quarterly basis if its turnover did not exceed EUR 300.000 during previous calendar year (valid as from 1 July 2019). However the tax period is calendar month if the taxpayer acquires goods/services from other EU Member States and is liable to the payment of the VAT.
When should periodical VAT return be filed?
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.
VAT Directive
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. 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.
Is this requirement laid down in the country and what is the filing deadline?
No
VAT Directive
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.
Are quarterly filings allowed by the country and what is the filing deadline?
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.
VAT Directive
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.
What is the payment deadline?
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?
No
VAT Directive
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. Member States may require interim payment to be made.
Is any VAT credit automatically carried forward or refunded?
A VAT credit is in principle automatically carried forward to the next period, unless a tax refund has been applied for.
VAT Directive
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.
VAT OVERVIEW IN LITHUANIA
What is the local name of the tax?
Pridetines Vertes Mokestis [PVM]
What is the structure of the VAT number?
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.
VAT Directive
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.
VAT rates
Lithuania applies a standard VAT rate of 21% and two reduced VAT rates: 5% and 9%.
€ 35,000
see various thresholds applied in the EU
Ministry of Finances
Intrastat
Any VAT question for Lithuania?
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