Assistance in Registering VAT in Lithuania

Businesses engaging in commercial activities in the territory of Lithuania are subject to paying Value-added Tax (VAT) in Lithuania. The standard VAT rate is 21%, however, experts can advise on the entitlement to more favourable VAT rates.

The State Tax Inspectorate requires businesses to register at least 3 days before the date of their first taxable supply. 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).

Companies are required to register as VAT payers when:

• The company’s turnover from its commercial activities (supply of goods/services) subject to VAT and carried out in Lithuania exceeds 45,000 EUR per year (during the last 12 months).
• The company purchases goods in Lithuania from another member state of the EU for more than 14,000 EUR per calendar year.
• The company is managed by a person supervising several legal entities whose total revenue from the supply of goods/services in Lithuania exceeds 45,000 EUR per year (during the last 12 months), or who altogether purchase more than 14,000 EUR worth of goods in Lithuania from another member state of the EU per calendar year.

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.

In some cases where foreign taxable companies are not obliged to register as VAT payers in Lithuania (depending on their goods/services), paid VAT (e.g. when purchasing goods from a Lithuanian taxable company) can only be refunded through VAT deduction, i.e. a foreign taxable company must register as a VAT payer in order to request a VAT return.

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

• Preparation of the application based on information provided by you.
• Submitting electronic/hard copy application with the Vilnius County State Tax Inspectorate either in the presence of the applicant or digitally for e-Residency smart cardholders.
• 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.

It takes about 3 business days for the company to be granted with the VAT registration. 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 will help you prepare the necessary documentation taking into account the specifics of your business, provide sworn translation of documents into Lithuanian, help you to issue and submit applications to the tax service and will support your company until it is successfully registred as a value added tax taxpayer in Lithuania.

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.