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 paying the director a salary — monthly payroll calculations are prepared: gross salary, personal income tax (GPM) at 20–32%, employee social contributions (19.5%), and employer social contributions (1.77% + 3% health insurance). Payslips are issued to each employee. The monthly payroll declaration (GPM313) is submitted to VMI and the SoDra employer declaration is filed by the 15th of the following month.
Quarterly advance corporate income tax
Lithuanian companies that expect to owe corporate income tax in the current year must make quarterly advance CIT payments. We calculate the advance payment amount based on the prior year tax liability or current year estimated profit and file the quarterly declaration with VMI. This prevents a large year-end CIT liability and avoids late payment interest.
Annual financial statements
At the end of the financial year, we prepare the full set of annual financial statements: balance sheet, profit and loss statement, and notes. For qualifying small companies, a simplified set of statements applies. The statements are submitted to JAR through the JANGIS system within 3 months of the financial year end — typically by 31 March for calendar-year companies.
Annual corporate income tax return
The annual CIT return is filed with VMI by the 15th of the sixth month after the financial year end — typically 15 June for calendar-year companies. We prepare the return, apply any applicable reliefs (including the 5% small company rate or the 0% first-year rate where eligible), and submit electronically. Any balance of CIT due is paid at this point, net of 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 5% 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 feeThe 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 companiesStartups operating with crypto assets — including token-related activities, VASP-registered businesses, or companies holding or trading cryptocurrency — require specialist accounting treatment. Our crypto accounting retainer starts from €350/month and covers the additional complexity of token classification, fair value measurement, and VMI-compliant reporting for crypto transactions. Contact us for a specific quote based on your transaction profile.
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
VAT registration becomes mandatory when your company’s annual turnover from VATable activities exceeds €45,000. Once the threshold is crossed — even in the final month of the year — retroactive registration applies from the point the threshold was exceeded, and VAT must be accounted for on all sales from that point regardless of whether it was included in the prices charged. Clients who were not issued VAT invoices do not owe the VAT — the company does, from its own margin.
When voluntary VAT registration makes sense
For most B2B startups, voluntary registration from day one is the better choice. If your clients are businesses — in Lithuania or elsewhere in the EU — they are VAT-registered and can reclaim the VAT you charge them, meaning your net price to them is unchanged. You, in return, can reclaim input VAT on your own purchases: software subscriptions, office costs, professional service fees, equipment. 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
If your startup sells digital services — software, subscriptions, downloads — to private consumers in other EU member states, the EU One Stop Shop (OSS) scheme applies once your cross-border B2C sales exceed €10,000 annually. OSS allows you to report and pay VAT for all EU countries through a single quarterly return filed with VMI. We register your company for OSS and manage the quarterly OSS filings as part of the accounting retainer for VAT-registered companies.
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 confirmationWe 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 setupWe 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 beginsFrom 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 know the company’s CIT position — what has been paid, what is owed, whether advance payments are current. A company that has never made CIT advance payments and owes a large year-end liability presents a cash flow risk. We calculate and file quarterly advance CIT payments for every client, keeping the year-end position manageable and predictable.