Accounting for Startups in Lithuania
AT A GLANCE
- Lithuanian law requires double-entry bookkeeping from the date of company registration — not from the first invoice or first client.
- We provide full-cycle accounting for Lithuanian startups on a fixed monthly retainer — from €250/month for companies without a VAT number, from €350/month for VAT-registered companies.
- All reporting is in English. VAT returns, payroll declarations, and annual financial statements are filed electronically with VMI and JAR on your behalf.
- Startups that set up accounting correctly from day one spend less time and money on compliance — and move through investor due diligence faster.
- Additional services — VAT registration, annual reports, employee registration, tax consultations — are available at fixed prices with no hidden fees.
Accounting for a Lithuanian startup covers bookkeeping, VAT returns, payroll, and annual financial statements — all required by Lithuanian law from the date of registration. We handle the full accounting cycle on a fixed monthly retainer: from €250/month for companies without a VAT number and from €350/month for VAT-registered companies. The retainer includes monthly bookkeeping, all statutory filings, and a monthly management report in English. Additional services — VAT registration, annual reports, employee registration, and tax consultations — are available at fixed prices listed on this page.
Why Startups Need Accounting From Day One
The most common accounting mistake Lithuanian startups make is treating bookkeeping as something that starts when the company becomes “real” — when revenue arrives, when investors come in, when the team grows. Lithuanian law takes a different view. Every UAB must maintain double-entry bookkeeping records from the date of registration, regardless of whether the company has any transactions.
The practical consequences of starting late are predictable: a retroactive reconstruction of 6–12 months of transactions takes time, costs more than ongoing bookkeeping would have, and consistently surfaces errors — incorrect VAT treatment, missing input VAT claims, misclassified expenses, or undeclared income — that are more expensive to correct than to prevent. For startups approaching their first external investment, the timing is particularly painful: due diligence begins exactly when the founders are busiest, and clean financial records are one of the first things investors check.
We set up the accounting system before your company issues its first invoice. Monthly records are kept current. Filings are submitted on time. When due diligence comes — or a bank asks for 12 months of financial statements — the answer is ready.
What Our Startup Accounting Service Covers
Our monthly accounting retainer for startups covers the full statutory accounting cycle — everything the Lithuanian State Tax Inspectorate (VMI) and the Register of Legal Entities (JAR) require from a Lithuanian UAB, delivered in English at a fixed monthly fee.
Monthly bookkeeping
All income and expense transactions are recorded in the accounting system each month under Lithuanian Business Accounting Standards (VAS). This includes sales invoices, purchase invoices, bank transactions, and expense reports. The chart of accounts is set up at the start to reflect your specific business activities — not a generic template. Bank reconciliation is performed monthly to ensure the accounting records match the company’s actual bank balance.
VAT returns
If your company is VAT-registered, monthly or quarterly VAT returns are prepared and submitted to VMI through the electronic declaration system (EDS). The return includes output VAT on sales, input VAT reclaim on eligible purchases, and any EU intracommercial (EC) sales or purchase declarations where applicable. We notify you of the VAT balance due or refundable before the filing deadline so there are no surprises.
Payroll and SoDra declarations
If your company employs staff, including a remunerated director, we prepare monthly payroll calculations covering gross salary, applicable Personal Income Tax (GPM), employee social insurance contributions and employer contributions. In 2026, employment income subject to the general progressive tax regime is generally taxed at rates of 20%, 25% and 32%, depending on the applicable annual income thresholds. Standard employee social insurance contributions are generally 19.5%, including compulsory health insurance, with an additional 3% pension accumulation contribution where applicable. For a standard indefinite-term employment contract, employer contributions generally start at 1.77%, subject to the applicable occupational risk category and employment conditions. There is no additional universal 3% employer health insurance contribution. GPM313 and Sodra SAM declarations are submitted within their respective statutory deadlines.
Quarterly advance corporate income tax
Lithuanian companies are required to calculate and pay advance Corporate Income Tax only where the relevant statutory conditions are met. The obligation depends on the company’s revenue, tax history and applicable exemptions. Newly established companies and businesses qualifying for statutory exemptions may not be required to make advance payments. Where advance CIT applies, the amount may be calculated using previous tax results or the current year’s estimated taxable profit, in accordance with the applicable rules. We assess each company’s obligation and prepare the required declarations and payments.
Annual financial statements
At the end of the financial year, we prepare the annual financial statements in accordance with the applicable Lithuanian Financial Accounting Standards or IFRS. The required statements depend on the company’s size and reporting classification. For a Lithuanian UAB, the annual general meeting must generally approve the financial statements within four months after the financial year end. The approved statements must then be submitted to the Register of Legal Entities (JAR) within 30 days after approval. Financial statements are filed through the Centre of Registers’ electronic filing system, not through JANGIS, which is used for beneficial ownership information.
Annual corporate income tax return
The annual Corporate Income Tax (CIT) return is generally filed with the Lithuanian State Tax Inspectorate (VMI) by the 15th day of the sixth month following the end of the tax period. For calendar-year companies, the deadline is generally 15 June of the following year. From 1 January 2026, Lithuania’s standard CIT rate is 17%, while qualifying small companies may apply a reduced rate of 7%. Eligible newly established companies may apply a 0% rate during their first two tax periods, subject to statutory conditions. Any outstanding tax must be paid within the applicable statutory deadline, taking into account advance payments already made.
Monthly management report in English
Each month, we send you a management report summarising the company’s financial position: revenue, expenses, gross and net profit, VAT position, cash balance, and any outstanding obligations. The report is in English and structured for founders who need a clear financial picture without accounting jargon. It also flags any upcoming filing deadlines or unusual items that need your attention.
Accounting Prices for Lithuanian Startups
All accounting services are priced at fixed rates — monthly retainers for ongoing services, fixed fees for one-off engagements. There are no hourly charges, no surprise invoices, and no charges for email correspondence or routine questions.
Monthly retainer — choose your package
- Monthly bookkeeping — all transactions recorded under Lithuanian accounting standards
- Bank reconciliation — monthly
- Quarterly advance corporate income tax calculation and filing
- Annual financial statements — balance sheet, P&L, notes
- Annual corporate income tax return — including 7% or 0% rate application where eligible
- JAR annual data confirmation submission
- Monthly management report in English
- Accountant available for routine questions — response within 24 business hours
- Everything in the non-VAT package, plus:
- Monthly or quarterly VAT return preparation and submission to VMI
- EU intracommercial declarations (EC sales/purchase lists) where applicable
- Input VAT reclaim on eligible business purchases
- VAT position report included in the monthly management report
- Notification of VAT balance due before each filing deadline
What determines the final monthly fee
The prices above are starting rates. The actual monthly retainer depends on transaction volume — the number of sales and purchase invoices, bank transactions, and expense items processed each month. A startup with 20 transactions per month pays the starting rate. A growing company with 200+ monthly transactions is quoted a higher retainer reflecting the additional work. We assess your expected volume at the start and quote a fixed monthly rate — which you can review as the company grows.
Additional Services and Fixed Fees
The following services are available outside the monthly retainer at fixed prices. They cover one-off engagements, occasional filings, and services that not every company needs every month.
VAT registration and annual reporting
| Service | Price |
|---|---|
| Assistance in registering VAT number (for residents) in Lithuania | €800 |
| Assistance in registering VAT number (for non-residents) in Lithuania | €1,500 |
| Annual report for a Lithuanian company | from €650 |
| Individual tax consultation | from €300 |
| Winding up a Lithuanian company | from €850 |
Additional services — per-item fees
| Service | Price |
|---|---|
| Accounting of additional primary documents Includes sales and purchase invoices from companies or individuals in any currency |
€7 / invoice |
| Accounting of bank transaction in any currency | €1 / transaction |
| Employee registration in Social Insurance Fund Board (SoDra) | €50 / person |
| Wage calculation for additional employee Includes admission, dismissal, vacation, maternity, unpaid leave, declarations |
€70 / month |
| Accounting for fixed assets | €30 |
| Accounting of advance | €30 |
| Accounting of agreements | €50 |
| Reports to public authorities | €50 |
| Accounting of vehicle | €50 |
| Accounting for business trips (up to 10 documents) | €100 |
| Declaration adjustment (SoDra, VAT) | from €100 |
| Drawing up a statistical report | €150 |
| Loan agreement preparation | €200 |
| Preparation of work agreement Includes order for admission, NPD application |
€250 |
| Other work unspecified in contract | €120 / hour |
| Urgent work fee Applied to the base invoice for urgent requests |
50% surcharge |
Accounting for cryptocurrency companies
Startups operating with crypto-assets, including companies holding or trading crypto-assets and authorised Crypto-Asset Service Providers (CASPs), may require specialist accounting and tax reporting. Lithuania’s former VASP transitional regime ended on 31 December 2025, and national VASP registration no longer provides authorisation to conduct regulated crypto-asset services. Our crypto accounting retainer starts from EUR 350 per month and covers asset classification, transaction reconciliation, appropriate accounting measurement and tax reporting. Fair value measurement is applied where required by the relevant accounting standards rather than automatically to every crypto-asset.
VAT Registration for Lithuanian Startups
VAT is the area where startups most frequently make costly mistakes — either by missing the registration threshold, registering at the wrong time, or failing to understand which transactions carry VAT obligations. Here is what you need to know.
When VAT registration is mandatory
Since 1 May 2025, Lithuania’s domestic VAT registration threshold of EUR 45,000 is assessed by reference to qualifying turnover in the current and preceding calendar years. VAT registration or other VAT compliance obligations may also arise below this threshold because of certain cross-border services, intra-Community acquisitions or other transactions. Where the domestic threshold is exceeded, the applicable VAT liability and registration obligations must be determined under Lithuanian VAT legislation, taking into account the transaction that triggered the threshold and any available small business scheme provisions. A company that fails to register when required may become liable for unpaid VAT, interest and applicable penalties.
When voluntary VAT registration makes sense
Voluntary VAT registration may be beneficial for B2B startups, particularly where they incur substantial VAT-bearing business expenses and make supplies that give rise to input VAT deduction rights. However, not all business customers are VAT-registered or entitled to deduct VAT in full. Domestic supplies generally follow Lithuanian VAT rules, while qualifying B2B services supplied to taxable persons in other EU Member States are generally subject to the reverse charge mechanism. Input VAT may be deducted only where the statutory conditions are satisfied, taking into account the nature and use of the purchases. The benefits and administrative costs of voluntary VAT registration should be assessed individually. For a startup spending €1,000–€2,000 per month on deductible expenses, voluntary VAT registration recovers €210–€420 per month in input VAT that would otherwise be a sunk cost.
VAT registration for non-residents
Foreign companies or individuals registering a Lithuanian company remotely face an additional layer of complexity in the VAT registration process — VMI requires additional documentation to verify the non-resident’s identity and business purpose. Our assisted VAT registration service for non-residents (€1,500) covers the complete process: document preparation, VMI correspondence, and confirmation of the VAT number. For Lithuanian residents, the same service is €800.
EU VAT and cross-border sales
For eligible EU-established businesses, the EUR 10,000 threshold applies to the combined value of qualifying cross-border B2C telecommunications, broadcasting and electronically supplied services and intra-Community distance sales of goods during the current and preceding calendar years. Once the applicable threshold is exceeded, these supplies are generally subject to VAT in the customer’s Member State, unless another relevant provision applies. Registration for the EU One Stop Shop (OSS) scheme is optional; businesses may instead register and account for VAT directly in the Member States concerned. We assist with OSS registration and quarterly reporting where the company elects to use the scheme and meets the applicable conditions.
Getting Started: What the Onboarding Process Looks Like
We take on new startup accounting clients on a rolling basis — there is no waiting list and no minimum contract period. Here is what the first two weeks look like.
Initial call and scope confirmation
We discuss your company’s activities, current transaction volume, whether you are VAT-registered or planning to register, whether you have any employees, and whether there are any prior periods that need to be brought up to date. This takes 30–45 minutes and results in a fixed monthly quote.
Accounting system setup
We set up the accounting system with a chart of accounts tailored to your business activities. If you are using accounting software, we configure access. If not, we manage the system entirely on our side and provide you with a read-only view of your financial data at any time.
Prior period catch-up (if needed)
If the company has been operating without accounting records, we reconstruct the prior period from bank statements, invoices, and receipts. We confirm the cost of this catch-up in advance based on the volume of transactions to be reconstructed.
VAT registration (if applicable)
If your company is not yet VAT-registered and you choose to register, we prepare and submit the VAT registration application to VMI. We advise on whether monthly or quarterly VAT returns are more appropriate for your transaction volume.
Monthly cycle begins
From the first full month, the monthly accounting cycle runs automatically. You send us bank statements and invoices — or connect your bank and invoicing tool — and we handle the rest. The management report arrives in your inbox by the 15th of the following month, along with a summary of any filings submitted and amounts due.
What Investors Check in Your Accounts
If your startup is planning to raise external investment — angel, seed, or Series A — your financial records will be examined during due diligence. Understanding what investors look for helps you understand why clean accounting from day one pays back directly.
Consistent, complete monthly records
Investors want to see that the financial statements tell a coherent story month by month — no unexplained jumps in revenue, no gaps in expense recording, no months with implausibly low activity followed by large retroactive entries. Consistent monthly bookkeeping produces this automatically. Reconstructed records never quite achieve the same consistency and always raise questions.
VAT compliance
Investors check whether the company’s VAT registration was in place when it should have been, whether VAT returns were filed on time, and whether there are any outstanding VAT liabilities. A startup that crossed the €45,000 threshold without registering, or that has late VAT filings, carries a contingent liability that investors price into the valuation or require to be resolved before closing.
Payroll compliance
Employment arrangements are examined closely — particularly in startups where founders or early employees may have been paid informally or through contractor arrangements that have the substance of employment. Investors check SoDra declarations, GPM filings, and the consistency between the company’s payroll records and its bank statements. We structure employment and contractor arrangements correctly from the outset so this area of due diligence is clean.
Corporate income tax position
Investors want to understand the company’s Corporate Income Tax position, including taxes paid, outstanding liabilities, available tax reliefs and compliance with applicable advance payment obligations. Advance CIT payments are not mandatory for every Lithuanian company, particularly where statutory exemptions apply. We assess whether advance CIT is required for each client and prepare the relevant calculations, declarations and payments where applicable. Where advance payments are not required, we help the company forecast its annual tax liability and plan its cash flow accordingly.
