Assistance in Registering VAT in Lithuania

Lithuanian VAT obligations depend on the transactions, their place of supply, applicable exemptions and registration rules. Conducting commercial activities in Lithuania does not automatically require a business to charge Lithuanian VAT. The standard VAT rate is 21%, however, experts can advise on the entitlement to more favourable VAT rates.

Applications for mandatory VAT registration must be submitted immediately when the registration obligation arises. Applications for voluntary registration must be submitted at least 3 working days before the requested registration date. It’s important to note that the registration forms must be completed in Lithuanian language (all translations must be certified).

In order to register for VAT at the State Tax Inspectorate, you’re required to provide the following documentation:

• VAT certificate to prove the business is registered for VAT elsewhere in the EU, if appropriate.
• Articles of Association.
• A commercial register extract from the country of establishment (translated into Lithuanian).

VAT registration may also be required when a Lithuanian business purchases services from foreign suppliers subject to reverse charge or provides services to businesses in another EU Member State under the general B2B place-of-supply rule, regardless of turnover. Eligible businesses may apply the small business scheme (SVS). Other registration grounds include:

• A Lithuanian business’s qualifying turnover from supplies in Lithuania exceeds EUR 45,000 in the current or previous calendar year. Foreign businesses are subject to separate registration rules and generally cannot rely on this threshold unless eligible for the cross-border small business scheme.
• The value of qualifying goods acquired from other EU Member States and transported to Lithuania exceeds EUR 14,000 in the current or previous calendar year. Eligible Lithuanian businesses registering on this ground may apply the small business scheme (SVS).
• Where a person directly or indirectly controls two or more legal entities, statutory aggregation rules may require their qualifying Lithuanian turnover and intra-EU goods acquisitions to be assessed together, including the controlling person’s relevant activities. The thresholds are EUR 45,000 for turnover and EUR 14,000 for qualifying acquisitions, assessed by reference to the current or previous calendar year. Separate assessment is permitted only where the statutory conditions concerning separate management, different activities and absence of activity for each other’s benefit are met.

Companies intending to carry out economic activities subject to VAT, or companies already engaged in economic activities subject to VAT, but not exceeding the above thresholds, may voluntarily register as VAT payers in Lithuania. In any case, before registering as a VAT payer it’s obligatory to first register with the Register of Taxpayers.

If a foreign company is legally required to register as a VAT payer in Lithuania but fails to do so, it still remains obliged to calculate, pay and submit VAT tax returns in Lithuania.

Eligible foreign businesses may recover Lithuanian input VAT through the refund procedure for non-established taxable persons without registering for Lithuanian VAT. Businesses established in another EU Member State generally apply through their home country’s electronic portal. Businesses established outside the EU are subject to separate eligibility and refund rules.

Company in Lithuania UAB team will assist you with the following tasks:

• Preparation of the application based on information provided by you.
• Submitting the VAT registration application electronically through Mano VMI, either by the applicant or an authorised representative using an accepted authentication method.
• Support in answering additional questions received from the Vilnius County State Tax Inspectorate.

How can we help you get a VAT No. in Lithuania?

Our professional accountants will prepare the necessary applications and explanations for the tax service, and will help you collect and correctly submit a number of necessary documents. Also, if the tax service has additional questions during the consideration of your company’s application, our team will help provide explanations and answers to them in such a way as to increase the chances of obtaining a VAT No. in Lithuania.

VMI normally decides on the application within 3 working days. If additional or corrected information is required, the decision period runs from receipt of all requested information. Registration is subject to VMI’s approval. A company is free to start its commercial activities and charge Lithuanian VAT as soon as it receives its VAT number. When engaging in commercial activities, it’s imperative to comply with the Lithuanian VAT compliance rules and file regular returns.

List of documents for registration of a VAT No. in Lithuania

To register a VAT No. in Lithuania, your company needs to provide a number of documents confirming the reality of the business or the need to receive a VAT No.
To do this, it is often necessary to provide documents confirming that the company has:

• Transactions that are subject to VAT taxation.
• Buyers or suppliers, as confirmed by existing contracts.
• Employees in the company’s staff who perform sales or provide services.
• An office, warehouse or other premises necessary for doing business; in the event that the company’s business model rules out them, the tax service needs to be provided with a detailed explanation about this.

Also, during the consideration of your application, the tax service may have questions requiring the provision of additional documents. The accountants and tax consultants of Company in Lithuania UAB will help you at all stages of registration and receipt of a VAT No. in Lithuania. We help prepare the documents required for your business, arrange Lithuanian translations with the certification required by VMI, submit the application and respond to additional enquiries. The final registration decision rests with VMI, and approval is not guaranteed.

Where to start, and how does the VAT No. registration process work?

In order for our company to register a VAT No. for your business in Lithuania, you need to:

In the process of work, our team of accountants and lawyers, based on the specifics of your business, studies your situation, tells you which documents need to be submitted to the tax service. Next, we collect the necessary documents (some of them will be sent to us by you), draw up them properly and apply for registration with State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania.

As a rule, the period of registration as a VAT payer and receipt of a VAT No. takes in Lithuania from two days to 2 weeks. If the tax service has additional questions in the process, the registration period may be slightly longer.

After receiving a VAT No., the accounting team of Company in Lithuania UAB will help you with maintaining accounting records at your Lithuanian company and will advise on VAT issues arising in the course of business activities.

Our dedicated team in Lithuania can help your business grow by providing detailed guidance on Lithuanian VAT legislation, including registration, thresholds, allowances, benefits, tax relief and more. We take an individualised approach which will enable you to receive a consultation tailored to suit your specific business needs. You can be assured that confidentiality, accuracy and operational excellence will be guaranteed from our side. Book your consultation here.