Accounting Services in Lithuania

FREQUENTLY ASKED QUESTIONS

• Do all companies need to keep their company accounting in Lithuania?
  Tax and Board as well as Social Insurance departments require all Lithuanian companies to submit reports. Keeping the accounting of a company in the correct order requires the appointment of an experienced accountant.
• Does my Lithuanian company allow me to handle accounting?
  No, accounting can’t be handled by the head of the company. An accountant is required for every Lithuanian company in order to prepare and submit the government's required financial reports. Accounting entries are the responsibility of an employed accountant, a company, or a person who provides accounting services.
• Which permissions are required to grant an accountant access to the Tax and Customs Board of Lithuania?
  Using a power of attorney/application, you can grant us access to your accounting records. Upon registration of the company, we can supply you with a POA template that you need to fill out, sign, and send to the Tax and Customs Board.
• Do Lithuanian source documents need to be in a specific language?
  Accountants can accept documents in different languages. Depending on the content of the source documents, you may be contacted. During the preparation of financial statements, Lithuania uses the euro as its official currency.
• Could you please let me know how I can provide the documents to the Lithuanian accountant?
  You must send all the documents of your company to the accountant via email after concluding an agreement with us for accounting services.
• What is the deadline for providing the documents to the Lithuanian accountant?
  The customer is required to provide the statements for the previous month by the 5th day of the month. The bank statement must match all incoming and outgoing invoices. Partner details and a description of the invoice must be included on all incoming and outgoing invoices.
• How should a Lithuanian company submit a bank statement?
  PDF and XML formats are allowed for bank statements. A clear, legible statement dated from the 1st to the last day of the month should be included in this letter.
• How soon must Lithuanian monthly reports be submitted?
  Until the 15th of every month, employees must submit their employee declarations. VAT declarations should be submitted until 25th of every month.
• Is it necessary to file an annual report in Lithuania every year?
  In fact, yes. Annual reports are required for every company registered in Lithuania. Even companies with no activity during the financial year.
• How long does it take for Lithuanian companies to submit their annual reports?
  The report should be submitted within five months of the end of the financial year. Lithuanian Center of Registers requires Shareholders to confirm and submit an annual report.
• The Lithuanian company's accounting costs are affected by what factors?
  Accounting prices are determined by VAT availability. A company's responsibilities, employees, and the amount of processed documents can also affect the cost.
• In Lithuania, what is the cost of accounting services?
  Accounting service of companies without a VAT number start from 250 EUR / month Accounting service of companies with a VAT number start from 350 EUR / month
• Does a Lithuanian company have the option of ordering accounting services for previous financial periods?
  Depending on the number of transactions for the relevant financial period, the price will vary. A Lithuanian accountant needs all the documents and statements in their entirety.
• What is the purpose of keeping accounting records for my company?
  The law requires it. A company in Lithuania has to provide reports to Tax Inspectorate, Social Security Fund, Department of Statistics, Centre of Registers, Customs Department and migration offices. Tax evasion or non-compliance with annual report requirements will lead to problems with the authorities.
• Accounting reports are required for what types of companies?
  Lithuanian companies are required to submit reports. Heads of companies cannot handle accounting. Each Lithuanian company must have an accountant who will assist in preparing the necessary reports and submitting them to the state authorities. In addition, the accountant will provide advice on what taxes one must pay.
• Lithuanian annual reports: what are they?
  A company's annual report provides information about its performance for shareholders and other interested parties. Profit and loss statements and balance sheets are mandatory components of the annual report.
• Are annual reports required for every company?
  That's right. An annual report is required for every company registered in Lithuania. It does not matter if the company was inactive for the entire financial year.
• Lithuanian annual reports are due by what date?
  Every year, no later than five months after the end of the financial year. It is mandatory for Shareholders to confirm and submit an annual report to the Lithuanian Centre of Registers.
• Is a VAT number required for my company?
  VAT registration is required by the company for the following reasons:

  • a) when the volume of sales exceeds 45, 000 EUR for 12 months
  • b) when the volume of purchase in EU exceeds 14, 000 EUR
• Does a company with a turnover under 45, 000 EUR have to register for taxation?
  A shareholder (participant) with 50% or more shares in another company must combine the profits and purchases made from the EU over the past 12 months (if the shareholder engages in natural person activities, his income as a natural person is also included).
• What is the need for an audit of my company?
  At least two of these indicators need to be met in order for an annual report to be audited:

  • 1. Net turnover 3, 500, 000 EUR
  • 2. Value of the assets 1, 800, 000 EUR
  • 3. Number of employees 50 persons
• In Lithuania, who is in charge of accounting?
  The accuracy of accounting entries is the responsibility of an employee accountant, a company, or a person who provides accounting services. It is not possible for the company's head to handle accounting. Accountants are required to assist Lithuanian companies in preparing and submitting government reports.
• For a Lithuanian company, what factors affect the cost of accounting services?
  VAT availability determines the price of accounting. Additionally, the cost can vary depending on the number of processed documents, the number of employees, and other company responsibilities.

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