Registration of VAT payers in Lithuania
If an enterprise intends to pursue economic activity, it may voluntarily get registered as a Value Added Tax (VAT) payer. However, it should be considered whether the registration is really necessary unless it is compulsory. One of the main criteria is customers purchasing goods or services of the enterprise: if customers are not VAT payers, voluntary registration would not be necessary.
The standard VAT rate imposed on goods and services is 19 %, while the reduced rate is 9 % and 5 %; in certain cases also VAT relief can be granted.
The VAT payer registration usually takes approximately 10 working days. In order to be registered as a VAT payer, the following information must be submitted:
- registration certificate of the enterprise;
- information on objects of the economic activity, as well as related addresses, telephone numbers, fax numbers, e-mails, websites etc.;
- information on planned and performed activities according to the Statistical Classification of Economic Activities;
- information on methods of conducting business;
- information on persons managing the enterprise, as well as on other entities managed by the said persons;
- information on real estate or other long-term assets at disposal of the enterprise that may be used for business in future.
Compulsory registration as a VAT payer
An enterprise is obliged to register as a VAT payer in the Republic of Lithuania in the following cases:
- If the revenue from selling goods and providing services in the Republic of Lithuania exceeds LTL 100,000 during the last 12 months.
- If the VAT payer in Lithuania purchases 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.
- If a person manages several legal entities and the total annual income of those (during the last 12 months) exceeds LTL 100,000. The obligation to register as a VAT payer applies to all of these entities even if the income in each of these entities does not exceed LTL 100,000.
Compulsory registration of foreigners as VAT payers
- Registration is compulsory for foreigners commencing economic activities in Lithuania (they must register upon the start date of their economic activities, i.e., not considering the LTL 100,000 threshold).
- Registration is compulsory for persons from EU Member States engaging in distance sales to persons in Lithuania, as well as in cases where the value of supplied goods exceeds LTL 125,000 in a calendar year.
If you would like to register a company in Lithuania read more about Company formation in Lithuania