Expanding to Lithuania? Here’s what you need to know about VAT
If you’re entering the Lithuanian market or offering goods or services from abroad, understanding VAT registration in Lithuania is one of your first compliance steps.
Lithuania follows the EU VAT system, but local rules, forms, and deadlines are unique. This guide explains how to register for VAT, who must do tax registration in Lithuania, and how to do taxes efficiently and correctly especially for foreign and international businesses.
1. Lithuania’s VAT system in a nutshell
The basics:
VAT in Lithuania is governed by the Law on Value Added Tax (Law No. IX-751) and administered by the State Tax Inspectorate (Valstybinė mokesčių inspekcija – VMI) under the Ministry of Finance.
Lithuania’s VAT framework aligns with EU legislation but requires local registration and compliance for both Lithuanian and foreign entities.
VAT Rates in 2025
Standard rate: 21 %
Reduced rate (9 %) – Accommodation, printed/electronic books, passenger transport
Reduced rate (5 %) – Certain periodicals and press publications
Zero rate / Exempt: Exports outside the EU, intra-Community supplies, financial, healthcare, and social services (subject to conditions)
2. Who must register for VAT in Lithuania
Local (Lithuanian) companies
Must register once annual turnover exceeds €45,000 in taxable supplies.
May register voluntarily before reaching the threshold.
Must also register if intra-EU purchases exceed €14,000 per year.
Foreign and Non-Resident businesses
No turnover threshold applies: once a foreign company conducts taxable activity in Lithuania (selling to Lithuanian clients, storing inventory, etc.), VAT registration is mandatory.
EU businesses can register directly with VMI.
Non-EU businesses must usually appoint a fiscal representative in Lithuania unless their country has a cooperation agreement with Lithuania.
Common triggers
Warehousing or stock in Lithuania
Local B2C supplies (especially digital or physical goods)
Installation or assembly work in Lithuania
B2B services supplied to Lithuanian customers (reverse charge rules may apply)
3. How to register for VAT in Lithuania: Step-by-Step
| Step | Action | What You’ll Need |
|---|---|---|
| 1. | Register as a taxpayer in Lithuania | Fill out form FR0227 |
| 2. | Apply for VAT registration | Submit form FR0388 via the Mano VMI online portal |
| 3. | Attach documents | Certificate of incorporation, Articles of Association, proof of activity, VAT certificate (EU), or power of attorney (if using a representative) |
| 4. | Appoint a fiscal representative (if required) | Mandatory for most non-EU entities |
| 5. | Await approval | Processing time ≈ 3 working days if documentation is correct |
| 6. | Receive VAT number | Format: LT + 9 digits (e.g. LT123456789) |
Tip: All documents must be in Lithuanian or officially translated.
Late or incomplete submissions delay registration.
4. How to do taxes in Lithuania (After VAT registration)
Filing VAT returns
Frequency: Monthly (most businesses) or quarterly (if approved).
Deadline: The 25th of the month following the tax period.
Filing method: Online via the Mano VMI portal.
Penalties: Late or incorrect filings can incur 20–100 % surcharges on unpaid VAT.
Intrastat reporting
If your dispatches to other EU countries exceed €400,000 or arrivals exceed €570,000 in a calendar year, you must submit Intrastat declarations.
Invoicing rules
Lithuanian VAT invoices must include: supplier and buyer names, VAT numbers, supply date, description, and VAT rate.
E-invoicing is mandatory for B2G (Business-to-Government) transactions.
Digital record-keeping and SAF-T reporting apply for larger taxpayers.
VAT deductions
Registered businesses may reclaim input VAT paid on purchases used for taxable business activities. Adjustments are needed if the usage of goods changes (for example, partly personal use).
Reverse Charge & Cross-Border Transactions
For intra-EU acquisitions, the Lithuanian buyer accounts for VAT under the reverse charge mechanism.
For exports or intra-Community supplies, VAT is zero-rated (subject to documentation).
5. Key considerations for international businesses
No Lithuanian entity required to register for VAT, foreign businesses can apply directly.
Non-EU entities should prepare to appoint a fiscal representative before starting activity.
Document translations must be official and notarized.
Invoices and accounting should follow Lithuanian standards.
Use the EU OSS (One-Stop Shop) scheme if you sell digital services or goods to EU consumers to simplify VAT compliance across multiple countries.
Keep thorough documentation for audits. Lithuanian VMI frequently requests proof of business activity for VAT refunds and cross-border claims.
6. Frequently Asked Questions
Do non-EU companies need a Lithuanian fiscal representative?
Yes, in most cases. Non-EU businesses must appoint a registered fiscal representative responsible for VAT compliance and communication with VMI.
What is the VAT threshold in Lithuania for 2025?
€45,000 annual turnover for Lithuanian entities; no threshold for non-resident entities conducting taxable activity.
How long does VAT registration take?
Typically 3–5 working days if all documents are correct and submitted electronically via Mano VMI.
Is it possible to reclaim Lithuanian VAT as a foreign company?
Yes, EU businesses can reclaim through the EU VAT Refund Portal; non-EU entities may claim via a fiscal representative, provided a reciprocal agreement exists.
7. How 1Office Lithuania can help
At 1Office Lithuania, we specialize in helping international entrepreneurs and companies register for VAT, manage tax compliance, and stay fully aligned with Lithuanian and EU law.
Whether you’re opening a branch, selling online, or offering services from abroad, our experts handle:
VAT registration and fiscal representation
Accounting and VAT filing via modern online systems
Company formation and legal address in Lithuania
Payroll and business administration
Contact our team to start your VAT registration in Lithuania today and ensure full compliance from day one.
