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?
  Yes. The company's head may handle accounting or appoint an employee or an external accounting service provider. The company must ensure that its accounting records and financial reports comply with applicable Lithuanian requirements.
• How can I authorise an accountant to represent my company before the Lithuanian State Tax Inspectorate (VMI)?
  You can authorise an accountant to access the relevant VMI electronic services, including EDS and My VMI, through the applicable representation and access-rights procedures. Access to Sodra services must be authorised separately where required.
• 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?
  Employers generally submit monthly GPM313 declarations to VMI and SAM reports to Sodra by the 15th day of the following month. Companies with a monthly VAT tax period generally submit FR0600 VAT returns by the 25th day of the following month. Different deadlines apply to other VAT tax periods and specific reporting obligations.
• 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 must maintain accounting records and submit the reports required for their legal form and activities. Accounting may be handled by the company's head, an appointed employee or an external accounting service provider.
• 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 consideration from VAT-taxable supplies in Lithuania exceeds EUR 45,000 in the current or preceding calendar year
  • b) when the value, excluding VAT, of qualifying goods acquired from other EU Member States and transported to Lithuania exceeds EUR 14,000 in the current or preceding calendar year. Certain cross-border services may also trigger VAT registration regardless of these thresholds.
• Does a company with a turnover under 45,000 EUR have to register for taxation?
  Where a person carrying out economic activity controls two or more legal entities, VAT registration may depend on the combined consideration from VAT-taxable supplies in Lithuania and qualifying intra-EU acquisitions of that person and the controlled entities. The relevant thresholds are assessed by calendar year, and statutory exceptions to aggregation may apply. Accounting profits are not the basis for this calculation.
• What is the need for an audit of my company?
  A statutory audit of annual financial statements is generally required where at least two indicators exceed these thresholds: net sales revenue EUR 4,500,000; balance sheet assets EUR 2,500,000; average annual number of employees 50. Other statutory audit triggers also apply, including certain public funding or support exceeding EUR 500,000, specified legal forms and regulated activities.
• In Lithuania, who is in charge of accounting?
  Accounting may be handled by the company's head, an appointed employee or an external accounting service provider. The company's head remains responsible for organising accounting and implementing appropriate internal controls.
• 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.