Lithuania VAT Calculator
1. Overview of Lithuania VAT
Lithuania applies a standard VAT rate of 21% to most goods and services. Reduced rates of 9% and 5% apply to specific categories such as books, accommodation, passenger transport (9%), and certain medical devices, baby food, and printed materials (5%). The Lithuanian VAT system is fully aligned with the EU VAT Directive, and the tax authority is the State Tax Inspectorate (Valstybinė mokesčių inspekcija – VMI).
The 9% reduced rate applies to books (including e-books), accommodation services, passenger transport, and some agricultural supplies. The 5% rate applies to certain medical devices, baby food, and printed materials. Always verify the correct rate for your specific products with VMI or a tax advisor.
The State Tax Inspectorate (VMI) manages all VAT registrations, filings, and audits. Non-EU companies providing digital services to Lithuanian consumers must register for VAT immediately or use the OSS scheme. Lithuania also offers a cash‑based accounting scheme for small businesses.
2. VAT Registration Threshold & Obligations
For Lithuanian-established businesses, VAT registration is mandatory once the annual taxable turnover exceeds €45,000 in a calendar year. Businesses below this threshold may register voluntarily. Non-resident businesses (including EU and third-country entities) generally have no registration threshold and must register from the first taxable supply in Lithuania.
Once registered, you must:
- Charge VAT on all taxable supplies (21%, 9%, or 5%).
- File VAT returns monthly or quarterly (depending on turnover).
- Submit recapitulative statements (EC Sales List) for intra-Community supplies.
- Keep digital records for 10 years (Lithuanian requirement).
- Comply with mandatory e-invoicing for B2G transactions; B2B e-invoicing is expected in the near future.
3. How to Register for VAT in Lithuania (Step by Step)
- Access VMI e-services portal – Visit the State Tax Inspectorate website (vmi.lt) and log in using the Electronic Declaration System (EDS) with a smart ID or qualified certificate.
- Submit registration application (Form FR0472) – Complete the VAT registration application. You’ll need your company registration number, legal entity details, and estimated taxable turnover.
- Provide supporting documentation – For non-resident applicants, additional documents such as a power of attorney for a fiscal representative (if required) and proof of taxable activities in Lithuania may be needed.
- Receive VAT number – VMI issues a Lithuanian VAT number (format: LT + 9 or 12 digits, e.g., LT123456789). Processing usually takes up to 30 days.
- Set up e-invoicing (if applicable) – For B2G transactions, e-invoicing is mandatory. For B2B, monitor upcoming regulations.
Important: Foreign businesses must register before starting taxable activities. Late registration may result in penalties and backdated VAT assessments. A fiscal representative may be required for non-EU businesses.
4. VAT Filing Deadlines & Penalties
VAT returns in Lithuania are generally filed monthly for most taxpayers. However, businesses with annual turnover below €150,000 may file quarterly if they choose. The filing deadline is the 25th day of the month following the reporting period. VAT payment is due on the same date.
| Reporting Period | Filing Deadline |
|---|---|
| January (monthly) | February 25 |
| February (monthly) | March 25 |
| March (monthly) | April 25 |
| Q1 for quarterly filers | April 25 |
Penalties: Late filing incurs a fine of €15 to €600 for the first violation, increasing for repeated violations. Late payment interest is calculated at the central bank's refinancing rate plus 7% points. In cases of intentional tax evasion, fines can reach up to €6,000 or more.
5. Special Rules: Reverse Charge & E-invoicing
Reverse Charge Mechanism: The reverse charge procedure applies to specific categories of goods and services, including construction services, mobile phones, and certain agricultural products. Under this mechanism, the recipient of the supply accounts for the VAT, shifting the liability from the supplier. This is also used for intra-Community B2B supplies.
E-invoicing: As of 2024, e-invoicing is mandatory for B2G (business-to-government) transactions. B2B e-invoicing is not yet mandatory, but the government is working on a roadmap for future implementation.
Important: For reverse charge transactions, the supplier must clearly state on the invoice that the reverse charge applies. Failure to do so may lead to incorrect VAT accounting and potential penalties.
6. Other Tax Obligations in Lithuania (2026)
Beyond VAT, businesses and employers in Lithuania must comply with several other taxes and contributions. Below is a summary of the key rates and rules for 2026.
Corporate Income Tax (CIT)
The standard CIT rate is 15%. Small businesses (with fewer than 10 employees and annual revenue below €300,000) may benefit from a reduced rate of 5%. For micro-enterprises (0-9 employees, revenue under €150,000), a 5% rate applies on the tax base, but with certain restrictions.
Withholding Income Tax (Personal Income Tax)
The standard personal income tax (PIT) rate on employment income is 20%. For annual income exceeding a certain threshold (€120,000 in 2026), the rate increases to 32% for the excess amount. Dividends and other capital income are generally taxed at 15%.
Social Security Contributions (SODRA)
The total social security contribution rate for employees is 19.5% (shared between employer and employee). The employer's part is approximately 1.77% for health insurance and 0.16% for accidents; the employee pays the rest. The minimum monthly contribution base is the minimum monthly wage (€1,000 in 2026).
Small Business Turnover Tax
Lithuania offers a simplified turnover tax for small businesses (individuals or companies with revenue under €150,000). The tax rate ranges from 1% to 5% of turnover, depending on the type of activity and whether the business is registered for VAT.
Cash-Based Accounting (for Small Businesses)
Small businesses with annual turnover below the VAT registration threshold (€45,000) may use cash-based accounting for VAT purposes, meaning VAT is accounted for when payment is received or made, rather than when the invoice is issued. This can improve cash flow for eligible businesses.
7. Useful Links & Official Resources
8. Frequently Asked Questions (SSS)
Q: What is the VAT registration threshold for foreign businesses in Lithuania?
A: There is no threshold for non-resident businesses. They must register for VAT from the first taxable supply made in Lithuania.
Q: Can I use the VAT calculator above for reduced rates?
A: Yes, the calculator includes options for both the standard 21% rate and the reduced 9% and 5% rates. Simply select the appropriate rate from the dropdown menu.
Q: Do I need to charge VAT when selling to another EU country?
A: If the buyer has a valid VAT number, you can apply reverse charge (0% VAT). Always verify their VAT number using our VAT Validator.
Q: How do I verify a Lithuanian VAT number?
A: Lithuanian VAT numbers follow the format LT + 9 or 12 digits. You can verify them using the VIES system or our on-site VAT Validator.
Q: What is the deadline for submitting a VAT return in Lithuania?
A: VAT returns are generally due by the 25th day of the month following the end of the reporting period (monthly or quarterly).
