VAT Lithuania Guide

Read our guide and find out everything you need to know about VAT in Lithuania, from registration to filing, and more.

If you’re planning to expand your business into Lithuania, it’s important you have a good understanding of the local Value Added Tax (VAT) system. This guide provides essential information about the Lithuania VAT system to help you navigate the complexities of VAT compliance there.

What is the Lithuania VAT Rate?

In Lithuania, VAT is known as Pridėtinės vertės mokestis (PVM). Lithuania has a standard VAT rate of 21% and two reduced rates of 9% and 5%. There is also a 0% Lithuania VAT rate for intra-community and international transport.

Type of VAT	VAT Rate	Applicable Goods/Services
Standard VAT	21%	All other taxable goods and services.
Reduced VAT rate (1)	9%	Includes domestic passenger transport, books, restaurant and catering services, water supplies, and hotel accommodation.
Reduced VAT rate (2)	5%	Certain goods and services including medical equipment, pharmaceutical products, and newspapers and periodicals.
Zero rate VAT	0%	Intra-community and international transport.

Registering for VAT in Lithuania

Businesses based in Lithuania with an annual turnover exceeding €45,000 must register for VAT. There is no threshold for non-resident companies.

The EU-wide distance selling threshold of €10,000 applies in Lithuania. Any business exceeding this limit in cross-border trade is required to register for Lithuanian VAT. If you store goods in Lithuania or participate in a fulfillment program, such as FBA (Fulfilled-by-Amazon), which includes Lithuania, VAT registration is also mandatory.

The registration process involves submitting the necessary forms and documentation to the Lithuanian State Tax Inspectorate. Once the application has been received and processed, a unique Lithuania VAT number will be issued to the company within four weeks.

Fiscal representative in Lithuania

Non-EU businesses must appoint a fiscal representative in Lithuania. This representative will be jointly responsible for the company’s Lithuania VAT compliance.

Lithuanian VAT return filing and penalties

In most cases, Lithuania VAT returns are filed monthly. Quarterly filing options are available for smaller businesses with an annual turnover of less than €300,000, while businesses with sales not exceeding €60,000 in a calendar year can file bi-annually.

The deadline for filing is the 25th of the month following the reporting period, and all VAT returns must be submitted electronically.

Penalties for late filing or payment include fines and interest charges. A missed Lithuania VAT return will incur a fine of between €200 to €390 and a daily interest charge of 0.03% will be imposed for any unpaid VAT due.

Lithuanian Intrastat declarations

Both resident and non-resident businesses engaged in trade within the EU must file Intrastat declarations if certain thresholds are met. The threshold for Intrastat declarations in Lithuania is €500,000 for arrivals and €300,000 for dispatches. The deadline for submission of declarations is the 10th of the month following the supply of goods.

Reverse charge in Lithuania

The reverse charge mechanism in Lithuania applies to certain goods and services, shifting the VAT payment responsibility from the supplier to the recipient. This mechanism is commonly used in cross-border transactions within the EU, for specific industries, and for some domestic supplies.

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