Business Services for E-Commerce Companies in Lithuania

AT A GLANCE

A Lithuanian UAB gives e-commerce businesses a full EU legal entity — enabling EU VAT registration, access to SEPA payment infrastructure, and cross-border selling to EU consumers under a single registration.
The EU One Stop Shop (OSS) scheme allows eligible Lithuanian e-commerce companies to declare and pay VAT on qualifying cross-border B2C supplies through a single quarterly return submitted to the Lithuanian State Tax Inspectorate (VMI). However, OSS does not cover every transaction or eliminate all VAT registration obligations in other EU Member States. Separate registrations may be required for domestic supplies, intra-Community acquisitions, movements of the company’s own goods and other transactions outside the scope of OSS.
We provide four service areas for e-commerce businesses: accounting, legal services, customs and import/export compliance, and payment gateway compliance advisory.
Import VAT, customs classification, and IOSS registration for non-EU sellers are areas where e-commerce companies consistently face unexpected liability — we advise on all three before the first shipment, not after the first audit.
Payment gateway compliance — PSP agreements, chargeback procedures, and PCI-DSS obligations — is one of the most overlooked legal risks for growing e-commerce operators.

E-commerce businesses operating from Lithuania need accounting, legal, and compliance support calibrated specifically to cross-border digital commerce — not to a standard commercial company. The key differences are: EU VAT compliance including OSS and IOSS registration; customs and import obligations for goods shipped internationally; consumer protection law requirements for online retail; and payment gateway compliance including PSP agreements and chargeback management. We provide all four service areas under one engagement, in English, for foreign-owned Lithuanian e-commerce companies selling to EU and global markets.

Why E-Commerce Businesses Register in Lithuania

For e-commerce operators selling into the EU market — whether goods, digital products, or services — a Lithuanian company provides something that no non-EU entity can offer: a genuinely EU-domiciled legal entity with access to the EU VAT system, EU payment infrastructure, and EU consumer rights framework from a single registration.

EU market access under a single entity

A Lithuanian UAB can sell to consumers and businesses across all 27 EU member states without additional country-by-country registrations for standard commercial activities. For marketplace sellers on Amazon EU, Zalando, or other pan-European platforms, a Lithuanian entity is fully accepted as an EU seller, enabling access to EU-only fulfilment programmes and EU seller ratings. For direct-to-consumer e-commerce websites, a Lithuanian company enables EU-compliant invoicing, EU consumer protection compliance, and access to EU payment processing without the complications that arise from non-EU entities attempting to transact in the EU market.

OSS — one VAT registration for the whole EU

The EU One Stop Shop (OSS) is the single most important VAT development for cross-border e-commerce operators in the past decade. Before OSS, an e-commerce business selling to consumers in multiple EU countries was required to register for VAT in each country where sales exceeded the local threshold. OSS replaces this with a single registration in Lithuania — from which all EU cross-border B2C VAT is reported and paid in a single quarterly return filed with VMI. For a business selling to consumers in ten EU member states, OSS replaces ten separate VAT registrations with one Lithuanian registration. The administrative saving is substantial.

Competitive corporate tax environment

From 1 January 2026, Lithuania’s standard Corporate Income Tax rate is 17%, while qualifying small companies may apply a reduced rate of 7%, subject to statutory conditions. Eligible newly established companies may benefit from a 0% rate during their first two tax periods. Lithuanian tax-resident companies are generally subject to Corporate Income Tax on their worldwide taxable profits, subject to applicable exemptions, foreign tax relief and double taxation agreements. International e-commerce structures must also consider transfer pricing, permanent establishment risks and the allocation of profits between jurisdictions.

SEPA and EU payment infrastructure

A Lithuanian company can open accounts with Lithuanian banks and EMIs that connect directly to the SEPA payment network. For e-commerce businesses that collect payments from EU consumers and pay EU suppliers, operating within the SEPA zone eliminates currency risk, reduces transaction costs, and simplifies reconciliation. Several leading e-commerce payment processors — including Stripe, Adyen, and local Lithuanian EMIs — provide seamless integration for Lithuanian entities.

OSS threshold

The EUR 10,000 threshold applies to the combined value of qualifying intra-Community distance sales of goods and cross-border B2C telecommunications, broadcasting and electronically supplied services during the current and preceding calendar year. It generally applies only to businesses established in a single EU Member State and meeting the applicable conditions. Once the threshold is exceeded, destination-country VAT rules apply to the relevant supplies. Businesses may use OSS to simplify reporting or register for VAT separately in the relevant Member States. OSS registration is optional, and qualifying businesses may also elect to apply destination-country VAT rules below the threshold.

Our Services for E-Commerce Companies

We provide four specialist service areas for e-commerce businesses operating from Lithuania. Each addresses a specific compliance challenge that standard commercial accounting or legal services do not fully cover for cross-border online retail.

Accounting Services for E-Commerce

E-commerce accounting is more complex than standard bookkeeping — multi-currency transactions, OSS VAT reporting for 27 EU member states, IOSS for non-EU goods imports, marketplace fee reconciliation, and inventory cost accounting all require specialist treatment. We provide e-commerce-specific accounting on a fixed monthly retainer, with OSS and IOSS filings included as standard for VAT-registered companies.

Monthly bookkeeping — multi-currency transactions, marketplace fees, payment processor reconciliation
Lithuanian VAT return — monthly or quarterly, including domestic sales and cross-border B2B transactions
EU One Stop Shop (OSS) quarterly return — consolidated cross-border B2C VAT for all EU member states
IOSS (Import One Stop Shop) return — for non-EU goods sold to EU consumers below the €150 customs threshold
Inventory and cost of goods accounting — including stock valuation, write-offs, and supplier invoice processing
Annual financial statements and CIT return — with e-commerce revenue recognition and returns/refund treatment
Monthly management report — revenue by channel and geography, margins, VAT position, and cash flow

Legal Services for E-Commerce

E-commerce legal work centres on the relationship with consumers — and EU consumer law is among the most protective in the world. Terms and conditions that do not comply with the EU Consumer Rights Directive are unenforceable. Returns policies that do not reflect the 14-day statutory right of withdrawal create liability. Privacy policies that do not comply with GDPR expose the company to regulatory action. We prepare and maintain the complete legal documentation framework for EU-compliant e-commerce operations.

Terms and conditions — EU Consumer Rights Directive compliant, covering purchase process, pricing, delivery, and cancellation
Returns and refund policy — reflecting the 14-day right of withdrawal and the conditions for exclusions
Privacy policy and GDPR documentation — for e-commerce companies processing EU consumer personal data
Supplier and manufacturer agreements — governing product sourcing, quality standards, and liability allocation
Marketplace seller agreements — reviewing and advising on terms from Amazon, Zalando, and other EU marketplaces
Distance selling compliance — pre-contractual information requirements under the EU Consumer Rights Directive
Product liability framework — advising on product safety obligations and liability exposure for imported goods

Customs and Import/Export Compliance

Cross-border e-commerce involving physical goods triggers customs obligations that catch many operators unprepared — import VAT, customs duties, tariff classification, and origin documentation all have direct cost and compliance implications. For e-commerce businesses importing goods into the EU from non-EU suppliers, or exporting goods from Lithuania to non-EU customers, the customs framework must be understood before the first shipment arrives — not discovered after a customs hold or an unexpected duty bill.

Customs duty and tariff classification advice — identifying the correct HS commodity code and applicable duty rate for your products
Import VAT planning — understanding when import VAT is due and how it can be reclaimed as input VAT
IOSS registration — for non-EU sellers importing low-value goods (below €150) to EU consumers; eliminates import VAT at the border
Customs valuation advice — how to correctly declare the customs value of imported goods
Country of origin documentation — advising on origin rules and the documentation required for preferential duty rates
Export compliance — export licensing requirements, dual-use goods assessment, and export documentation
Intrastat reporting — statistical reporting obligations for Lithuanian companies moving goods within the EU
Customs agent introduction — referrals to licensed customs brokers for practical import/export handling

Payment Gateway Compliance Advisory

Payment processing is the operational core of any e-commerce business — and the legal and compliance framework around it is more complex than most operators expect. PSP agreements contain liability clauses that shift chargeback exposure directly onto the merchant. PCI-DSS compliance obligations apply to any merchant that stores, processes, or transmits cardholder data. Strong Customer Authentication (SCA) under PSD2 affects conversion rates. We advise e-commerce companies on navigating payment gateway compliance from PSP selection through to ongoing chargeback management.

PSP agreement review — identifying liability clauses, reserve requirements, and chargeback thresholds before signing
Payment gateway selection advisory — comparing PSPs for e-commerce use cases on fee structure, SCA support, and settlement terms
Chargeback management framework — documented procedures for responding to chargebacks within the PSP's dispute window
PCI-DSS compliance guidance — assessing the applicable PCI-DSS SAQ level and the steps required to achieve compliance
Strong Customer Authentication (SCA/3DS2) — advising on SCA implementation and its impact on checkout conversion
Payment flow legal review — ensuring the payment flow description on the website correctly reflects the transaction structure
Recurring billing and subscription compliance — legal requirements for subscription products under EU consumer law
Payment dispute and fraud advisory — advising on the legal framework for disputed transactions and fraud prevention obligations

EU VAT for E-Commerce: OSS, IOSS, and What You Need to Know

EU VAT compliance is the area where e-commerce operators face the most significant and most avoidable exposure. The rules have changed substantially since 2021 — when the OSS and IOSS schemes replaced the previous distance selling thresholds — and companies that are still operating under the old framework are almost certainly non-compliant.

The pre-2021 problem

Before July 2021, each EU member state had its own distance selling threshold — the level of B2C sales above which a foreign e-commerce company was required to register for VAT locally. Most countries set thresholds between €35,000 and €100,000. Companies that exceeded these thresholds without registering accumulated VAT liabilities in multiple countries simultaneously, often without realising it. The pre-2021 system was widely non-compliant.

OSS — the current framework for B2C digital and physical goods

From July 2021, the OSS scheme replaced the distance selling thresholds for cross-border B2C sales. A Lithuanian e-commerce company selling to consumers in France, Germany, Poland, and Spain no longer needs separate VAT registrations in each country — it registers for OSS with VMI and reports all four countries’ sales in a single quarterly OSS return, paying the VAT owed to each country in a single payment to VMI, which then distributes the funds to the relevant tax authorities.

OSS covers: intra-EU cross-border supplies of goods dispatched from Lithuania to EU consumers; cross-border B2C services where the place of supply is determined by the consumer’s location; and digital services (downloads, subscriptions, streaming) delivered electronically to EU consumers.

IOSS — for goods imported from outside the EU

The Import One Stop Shop (IOSS) is an optional VAT simplification scheme for qualifying distance sales of goods imported from outside the EU in consignments with an intrinsic value not exceeding EUR 150, excluding goods subject to excise duties. Eligible sellers or deemed suppliers collect VAT at the point of sale and declare it through monthly IOSS returns. Where a valid IOSS identification number is provided in the customs declaration and the statutory conditions are satisfied, the import is exempt from import VAT. The scheme does not remove customs declaration obligations or other applicable import requirements.

Companies selling low-value goods from non-EU warehouses to EU consumers are not legally required to register for IOSS. Where IOSS is not used, imported goods must be declared under the applicable customs procedure, and import VAT must be accounted for in accordance with the relevant national rules. Depending on the commercial arrangements, import VAT may be collected from the recipient, paid by the importer or handled through special arrangements for declaring and paying import VAT. The seller should clearly disclose any additional import charges and delivery responsibilities to consumers before purchase.

What happens without OSS/IOSS compliance

OSS and IOSS are optional VAT simplification schemes rather than universally mandatory registrations. A company may lawfully conduct cross-border B2C sales without using either scheme, provided that it fulfils its VAT registration, declaration and payment obligations through the applicable alternative procedures. Failure to account for VAT correctly may result in unpaid tax liabilities, interest, penalties and other consequences under the relevant national legislation. The applicable obligations depend on the type of transaction, place of supply, import arrangements and the company’s VAT registration status.

Scheme	Who It Applies To	What It Covers	Return Frequency
OSS (Union scheme)	EU-based businesses selling cross-border B2C within the EU	Goods dispatched from EU + B2C digital services to EU consumers	Quarterly
IOSS	Sellers of goods imported from non-EU countries, value ≤ €150	Low-value goods sold to EU consumers from non-EU warehouses	Monthly
Standard Lithuanian VAT	All Lithuanian VAT-registered companies	Domestic Lithuanian sales + B2B cross-border EU transactions	Monthly or quarterly
OSS (non-Union scheme)	Taxable persons not established in the EU	Qualifying B2C services supplied to consumers in the EU, including electronically supplied services and other eligible services	Quarterly

EU Consumer Protection: What E-Commerce Companies Must Comply With

Selling to EU consumers — whether from a direct website or through a marketplace — triggers a set of consumer protection obligations that apply regardless of where the seller is incorporated. For a Lithuanian company selling to EU consumers, these obligations are imposed by Lithuanian law implementing EU Directives, and they apply to every sale to an EU consumer.

The 14-day right of withdrawal

Under Directive 2011/83/EU, consumers generally have 14 days to withdraw from qualifying distance contracts without giving a reason. For goods, the withdrawal period normally begins when the consumer or a designated third party receives the goods. For services and digital content not supplied on a tangible medium, the period generally begins when the contract is concluded. Specific statutory exceptions apply. The trader must generally reimburse the consumer within 14 days after being informed of the withdrawal, including standard delivery costs. For sales of goods, the trader may withhold reimbursement until the goods have been received back or the consumer has provided evidence of having returned them, whichever occurs first. The right of withdrawal applies to most consumer purchases — with specific exceptions for perishable goods, personalised items, digital content downloaded with the consumer’s consent, and certain other categories.

A returns policy that does not reflect the 14-day right of withdrawal is legally unenforceable — the statutory right applies regardless of what the website says. We draft returns policies that correctly state the statutory right while clearly communicating the seller’s practical process for handling returns.

Pre-contractual information obligations

Before an online consumer purchase is completed, the seller must provide a specific set of pre-contractual information — including the seller’s full legal name and registered address, the total price including VAT and delivery, delivery timelines, payment methods, the right of withdrawal and how to exercise it, the duration of the contract if applicable, and complaint and dispute resolution procedures. Failure to provide this information correctly can extend the withdrawal period to up to 12 months.

Digital Services Act (DSA) obligations

The EU’s Digital Services Act imposes additional obligations on online marketplaces and platforms operating in the EU. Lithuanian e-commerce companies operating their own marketplace — where third-party sellers list and sell products — are subject to DSA requirements including trader verification, traceability obligations, and notice-and-action procedures for illegal content. We advise on DSA applicability and the steps required for compliance.

Customs and Cross-Border Goods: Key Obligations

For e-commerce businesses that source physical goods from non-EU suppliers — China, Vietnam, Turkey, the UK, the US — and sell them to EU consumers, the customs framework creates cost and compliance obligations that must be understood at the business model design stage, not discovered after the first large shipment arrives.

Customs duties

Goods imported into the EU from non-EU countries are subject to customs duties — charged as a percentage of the customs value of the goods. The duty rate depends on the commodity code (HS code) of the goods, the country of origin, and whether any preferential trade agreements apply. Duty rates vary widely: textiles from China may attract duties of 12%, while electronics attract 0–3.7%. Incorrectly classifying goods under the wrong HS code — which happens frequently when commodity codes are assigned without specialist advice — results in either overpayment of duties or, more seriously, underpayment that becomes a customs liability on audit.

Import VAT

In addition to customs duties, goods imported into the EU are subject to import VAT at the applicable rate of the country of import — in Lithuania, 21%. Import VAT is paid by the importer of record at the time of customs clearance. For VAT-registered businesses importing goods for resale, import VAT can be reclaimed as input VAT in the Lithuanian VAT return — but only if the import VAT certificate (C79 equivalent) is correctly obtained and the goods are used for VATable business activities. Companies that import goods for resale without a Lithuanian VAT number cannot reclaim import VAT, making every import more expensive by 21%.

IOSS for marketplace sellers

If you sell low-value goods (below €150) through a marketplace such as Amazon or eBay, the marketplace may collect and remit IOSS VAT on your behalf — but only if the marketplace has an IOSS registration and your goods are stored outside the EU before sale. If you ship goods directly from a non-EU warehouse to EU consumers through your own website, you may use IOSS for qualifying consignments with an intrinsic value not exceeding EUR 150, excluding excise goods. IOSS registration is optional. Where IOSS is not used, import VAT must be accounted for through the applicable customs and VAT procedures. We assess the appropriate VAT and customs arrangements for each e-commerce business model and assist with IOSS registration where beneficial and legally available.

Frequently Asked Questions

No — this is precisely what the OSS scheme was designed to prevent. If your company is registered for OSS with the Lithuanian VMI, you report and pay VAT for all EU member states through a single quarterly return. You do not need separate VAT registrations in France, Germany, Poland, or any other EU country where you make B2C sales, provided those sales are made from Lithuania (or another EU country where you are OSS-registered). Local VAT registration may be required in another EU Member State where a company stores goods, makes domestic taxable supplies, carries out intra-Community acquisitions or undertakes other transactions outside the scope of OSS. Holding inventory in a fulfilment centre may create local VAT registration obligations, but it does not automatically constitute a fixed establishment for VAT purposes. Whether a fixed establishment exists depends on the availability of appropriate human and technical resources and the specific circumstances of the business.

The EUR 10,000 threshold applies to qualifying intra-Community distance sales of goods and cross-border B2C telecommunications, broadcasting and electronically supplied services, calculated together for the current and preceding calendar year. It is available only where the relevant eligibility conditions are satisfied. Once the threshold is exceeded, the applicable supplies are generally subject to VAT in the customer’s Member State. Businesses may choose to declare this VAT through the Union OSS scheme or comply with the relevant national VAT registration and reporting procedures. OSS registration is not mandatory, and no separate country-specific distance selling thresholds apply to these supplies.

Electronically supplied services sold to EU consumers are generally subject to VAT in the Member State where the consumer resides. However, the EUR 10,000 cross-border threshold may allow qualifying businesses established in only one EU Member State to apply their domestic VAT rules until the threshold is exceeded, unless they elect to apply destination-country VAT rules. The VAT treatment of online courses must also be assessed according to whether they qualify as electronically supplied services, live educational services or exempt educational activities. Eligible cross-border supplies may be reported through OSS rather than separate VAT registrations in each destination Member State.

Customs duties on goods imported from China vary by commodity code (HS code) and product type. Common e-commerce categories include: clothing and footwear (12%), consumer electronics (0–3.7%), toys (4.7%), furniture (5.6%), and sporting goods (2.7–17%). Some categories are subject to anti-dumping duties on top of the standard rate — solar panels and certain steel products, for example, carry significant additional duties. We advise on the applicable duty rate for specific products and on the correct HS code classification before the first import. Misclassification discovered during a customs audit results in backdated duty assessments plus penalties.

PCI-DSS (Payment Card Industry Data Security Standard) applies to any organisation that stores, processes, or transmits cardholder data — which includes virtually every e-commerce business that accepts card payments. The level of compliance required depends on the volume of card transactions and how cards are processed. Most e-commerce merchants that use a hosted payment page (where the card form is provided by the PSP, not the merchant) are eligible for the simplified SAQ A self-assessment, which requires relatively minimal technical security measures. Merchants with more direct involvement in card data processing face more extensive requirements. We assess the applicable PCI-DSS level and advise on compliance steps.

EU consumers generally have a 14-day statutory right of withdrawal from qualifying distance contracts, subject to the exceptions established by Directive 2011/83/EU. For goods, the withdrawal period usually begins on delivery, while for services and digital content not supplied on a tangible medium it generally begins when the contract is concluded. The trader must reimburse the consumer within 14 days of being informed of withdrawal, including the cost of standard delivery. For goods, reimbursement may be withheld until the trader receives the returned goods or evidence of their return, whichever occurs first. The right of withdrawal does not apply to: goods made to the consumer’s specification (customised products), perishable goods, sealed audio/video recordings or software once unsealed, digital content that has been downloaded with the consumer’s express consent and acknowledgement that the withdrawal right is lost on download, and accommodation or transport bookings for specific dates. We draft returns policies that correctly apply these exceptions while fully complying with the statutory framework.

A Lithuanian UAB may generally be owned and managed by foreign nationals, subject to applicable corporate, immigration, tax and regulatory requirements. A registered office address is required for company registration, but an address alone does not necessarily establish genuine economic substance or determine the company’s place of effective management for tax purposes. Goods stored in another EU Member State may create VAT registration obligations in that Member State, depending on the nature of the transactions and applicable simplifications. A fiscal representative is not universally required for an EU-established Lithuanian company. IOSS may be used for eligible distance sales of goods imported from outside the EU, subject to the scheme’s statutory conditions. The Lithuanian entity gives the operation a genuine EU legal basis — with all the VAT, customs, and consumer protection implications that entails — without requiring the founders to be physically located in Lithuania.

Ready to set up your Lithuanian e-commerce company?

Contact us to discuss your business model, product categories, and target markets. We will confirm the correct VAT registration strategy, advise on any customs implications, and provide a full service scope covering accounting, legal, and compliance from day one.

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Company in Lithuania UAB partners

Company in Lithuania UAB collaborates with a network of trusted partners across legal, financial, accounting, and business consulting sectors. Our strategic partnerships enable us to provide clients with end-to-end solutions for company registration, tax advisory, banking setup, and beyond — all under one roof, right here in Lithuania.

Strongest in Lithuania

Company in Lithuania UAB has been recognised as one of Lithuania’s most trusted business services firms. Based on the independent economic data of 2025, we have been awarded the Strongest in Lithuania designation for four consecutive years — a testament to our financial stability, professional credibility, and the trust that our clients place in us.

We contribute to a transparent, well-functioning business environment in the Lithuanian Republic — and we bring that same standard of integrity to every client engagement.

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