Accounting Services in Lithuania

All companies and subsidiaries of foreign companies operating in Lithuania are subject to accounting. The accounting of each company must conform to government-established standards so that the results are comparable and comprehensible.

Accounting in Lithuania is regulated by the following legal acts:

The head of the company must approve the accounting policy of the company, taking into account the specific business environment, type of activity and application of the Accounting Standards. Accounting policies should include accounting policies and accounting policies of the organization and the preparation and presentation of financial statements.

All accounting records of the company must be supported by documents (invoices, cheques, accounting records, expenditure reports, etc.).

Accounting records are archived for 10 years. In order to prepare accurate financial statements, both the assets and the liabilities of the company must be inventoried at least once a year and at the latest at the end of the financial year before the financial statements are prepared.

Accounting in Lithuania

BASIC REQUIREMENTS FOR THE ORGANISATION OF ACCOUNTING

  • Each company must prepare and submit an annual return to the Lithuanian Canter of Registers for within 5 months from company’s financial year.
  • Financial year can start on any month of a calendar year
  • Accounting cannot be handled by the head of the company.
  • All business transactions must be recorded in accounting programs.
  • All business transactions must be documented.
  • Accounting should provide a reliable, objective, and comparable view of the company’s financial situation, performance, and cash flows.
  • All accounting documents must be kept in the archive for at least 10 years.

ANNUAL FINANCIAL REPORT

  • Annual reporting is mandatory for all companies registered in Lithuania, even for companies  with no activities during the financial year.
  • Annual report must be confirmed at yearly General Meeting of Shareholders within 4 months  after the end of the financial year.
  • Financial year usually starts from 1st of January, but it can start on any month of a calendar  year and must have twelve consecutive months.
  • The annual report must be submitted to the Lithuanian Centre of Registers within 30 days  from the general meeting.

The financial year starts from any month of the calendar year, but must have twelve consecutive months at the end of which the books of accounts are closed and the financial statements of the company are prepared. As a rule, in the vast majority of Lithuanian companies the financial year coincides with the calendar year.

​​Each company registered in Lithuania must submit an annual report to the Lithuanian Business Register within six months after the end of the financial year. The annual report must be prepared in Lithuanian in the official currency of Lithuania (Euro).

The annual report is mandatory for all companies registered in Lithuania, even if the company had no activity during the financial year. The deadline for submitting the annual report is six months after the end of the financial year of the company, so if the financial year of your company ends on 31 December, the deadline for submitting the report is 30 June of the following year.

All accounting must be completed before the annual report is prepared.

The annual report should include the following:

  • Management Report
  • Balance
  • Income statement
  • Cash flow report
  • Report on changes in capital
  • Notes to annual accounts

What must be included in the annual report, depending on the company scale:

According to Lithuanian legislation, an annual report must be audited in a company that  exceeds at least two of the following indicators:

  • Net turnover 3 500 000 EUR
  • Value of the assets 1 800 000 EUR
  • Number of employees 50 persons

Annual financial reports and the annual report together with the auditor’s report are published  in the Legal Entities Register. The certified auditor must keep confidential the information  obtained during the audit and is liable for damage caused by violation of their duties arising  from their professional activities.

Company in Lithuania UAB provides accounting services to Lithuanian companies already with VAT number, as well as accounting services to companies without VAT number. We have a successful experience in different business segments and can offer our clients assistance in registering the VAT number in Lithuania, receiving the EORI number and preparing the annual report. Our specialists can also assist in obtaining financial licenses.

FREQUENTLY ASKED QUESTIONS

  • Do all companies need to keep their company accounting in Lithuania?
    Yes, all companies in Lithuania must submit reports to the Tax and Board and Social Insurance departments. It is necessary to appoint an experienced accountant to keep in good order all company accounting.
  • Can I handle accounting of my Lithuanian company?
    No, accounting can’t be handled by the head of the company. Each Lithuanian company must have an accountant who will assist in preparing the needed reports and submit them to the government authorities. Employed accountant, a company, or a person providing accounting services is responsible for the accuracy of accounting entries.
  • How to grant an Accountant access permission to the Tax and Customs Board of Lithuania?
    You can grant us access to accounting by power of attorney/application. After company registration we can provide a POA template, that you need to fill and signed send to the Tax and Customs Board.
  • In what language should the source documents be in Lithuania?
    Our accountants can accept documents in different languages. Be prepared that we can contact you to clarify the content of the source documents. Financial statements are prepared in Lithuanian (in the official currency of Lithuania – the euro).
  • How can I provide the documents to the accountant in Lithuania?
    After concluding with us an agreement on the provision of accounting services, all the documents of your company must be sent to the accountant by email.
  • When should I provide the documents for the accountant in Lithuania?
    By the 5th day of each new month, the customer must provide the statements from the bank account and /or payment system for the previous month. All incoming /outgoing invoices must match the bank statement. All incoming/outgoing invoices must be complete with partner details and an explanation of what this invoice is for.
  • In what format should a bank statement be submitted from Lithuanian company?
    Bank statements are allowed in PDF and XML formats. This statement should be drawn up in a clear, legible form and dated from the 1st to the last day of the month.
  • When is the deadline for submission of monthly reports in Lithuania?
    Employee declarations should be submitted until 15th of every month. VAT declarations should be submitted until 25th of every month.
  • Do I need to submit an annual report in Lithuania every year?
    Yes. Each company registered in Lithuania obligated to submit an annual report. Even companies with no activity during the financial year.
  • What is the deadline for submitting an annual report in Lithuania?
    No later than 5 months after the end of the financial year. An annual report must be confirmed by Shareholders and submitted to the Lithuanian Centre of Registers.
  • What affects the cost of accounting services for the Lithuanian company?
    The price of accounting depends on VAT availability. The cost can also vary depending on the amount of the processed documents, employees, and other company’s responsibilities.
  • What is the price for accounting services in Lithuania?
    Accounting service of companies without a VAT number start from 100 EUR / month Accounting service of companies with a VAT number start from 150 EUR / month
  • Is it possible to order accounting services for previous financial periods of a Lithuanian company?
    Yes, the price will depend on the number of transactions for the relevant financial period. It is important to provide all documents and statements in full to Lithuanian accountant.
  • Why do I need to keep accounting for my company?
    It is required by the law. 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. Non-compliance with the annual report requirements or failure to pay taxes will result in troubles with authorities.
  • What companies need to submit accounting reports?
    All companies in Lithuania must submit reports. Accounting cannot be handled by the head of the company. Each Lithuanian company must have a accountant who will assist in preparing the needed reports and submit them to state authorities as well as provide advice on what taxes one must pay.
  • What is an annual report in Lithuania?
    Annual reports are describing to shareholders and other interested people information about the annual results. The annual report’s mandatory components include the balance sheet and the company’s profit and loss statement.
  • Does every company need to submit an annual report?
    Yes. Each company registered in Lithuania obligated to submit an annual report. Even companies with no activity during the financial year.
  • What is the deadline for submitting an annual report in Lithuania?
    Annually, no later than 5 months after the end of the financial year. An annual report must be confirmed by Shareholders and submitted to the Lithuanian Centre of Registers.
  • Does my company need a VAT number?
    The obligation to register the VAT number with the company arises:
    • 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
  • Do I need to register a company taxable if the turnover is less than 45, 000 EUR?
    If the shareholder (participant) has 50% or more shares in other companies, the profits and purchases from the EU in the last 12 months must be summed by both companies (the shareholder’s income as a natural person is also summed up if the shareholder is engaged in activities as a natural person).
  • Does my company need to be audited?
    An annual report must be audited in a company that exceeds at least two of the following indicators:
    • 1. Net turnover 3, 500, 000 EUR
    • 2. Value of the assets 1, 800, 000 EUR
    • 3. Number of employees 50 persons
  • Who handles the accounting of the companies in Lithuania?
    Employed accountant, a company, or a person providing accounting services is responsible for the accuracy of accounting entries. Accounting cannot be handled by the head of the company. Each Lithuanian company must have an accountant who will assist in preparing the needed reports and submit them to the government authorities.
  • What affects the cost of accounting services for the Lithuanian company?
    The price of accounting depends on VAT availability. The cost can also vary depending on the amount of the processed documents, employees, and other company’s responsibilities.
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