#1 Registration of VAT payers in Lithuania by BalticLegal 20.04.2023 19:33

If a company intends to carry out an economic activity, it can voluntarily register as a VAT payer. However, it should be considered whether registration is really necessary, unless it is a mandatory registration. One of the main criteria are customers who buy the company's goods or services: if customers are not VAT payers, voluntary registration would not be required.

The normal VAT rate for goods and services is 19%, while the reduced rate is 9% and 5%; in certain cases, a VAT relief can also be granted.

Registration of the VAT payer usually takes about 10 working days. In order to be registered as a VAT payer, the following information must be provided:

company registration certificate;
Information on objects of economic activity and associated addresses, telephone numbers, fax numbers, e-mails, websites, etc.;
Information on planned and implemented activities according to the statistical classification of economic sectors;
information on methods of doing business;
Information about persons who direct the company and other entities controlled by these persons;
Information about real estate or other long-term assets that are available to the company and can be used in future business.
Mandatory registration as a VAT payer
A company is obliged to register as a VAT payer in the Republic of Lithuania in the following cases:

If the income from the sale of goods and the provision of services in the Republic of Lithuania has exceeded LTL 100,000 in the last 12 months.
If the VAT payer in Lithuania buys goods from other EU Member States (except for new vehicles or excise goods), the value of which exceeds LTL 35,000 in a calendar year.
When a person manages multiple legal entities and the combined annual income of these (last 12 months) exceeds LTL 100,000. The obligation to register as a VAT payer applies to all these businesses, even if the income in each of these businesses does not exceed LTL 100,000.
Compulsory registration of foreigners as VAT payers
Registration is compulsory for foreigners starting economic activity in Lithuania (they must register at the beginning of their economic activity, i.e. without taking into account the LTL 100,000 threshold).
Registration is obligatory for persons from EU member states who make distance sales to persons in Lithuania, as well as in cases where the value of the delivered goods exceeds LTL 125,000 in a calendar year.

Xobor Create your own Forum with Xobor