This guide provides an overview of VAT in Lithuania, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Lithuania.
Lithuania slashed VAT for heating and utilities to ease winter cost-of-living pressures.
Foreign businesses that incur VAT on eligible expenses in Lithuania may be able to reclaim it.
Armenia
Doing business in Lithuania? You’ll need to play by the rules of the Lithuanian VAT Act.
Businesses that exceed the threshold are required to register, while those below it can opt in voluntarily.
Lithuania applies VAT on digital services based on the consumer’s location, generally utilizing the OSS system for EU cross-border services.
VAT in Lithuania on the following expenses can generally be claimed in a foreign VAT refund: Fuel; Public transport fees; Accommodation; Food, drink and restaurant services; Admission to fairs and exhibitions; Entertainment and other general business expenses (e.g., office expenses, marketing costs etc).
Businesses reclaiming VAT in Lithuania can expect it to take anywhere from a few months to a year, depending on the claim complexity and submission accuracy. Claims for refunds of VAT in Lithuania can be made quarterly or annually. If a claimant wishes, it can request the status of the claim from the Lithuania VAT Authority.
Generally if VAT in Lithuania has been charged incorrectly on an invoice, the invoice would not be entitled to be included in a claim for a refund of VAT in Lithuania. The entity would need to contact the supplier to have the VAT in Lithuania that has been incorrectly charged, refunded to the entity. This is something that VAT IT will be able to assist with.
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