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VAT Registration and Reporting Services in Lithuania

Value Added Tax registration threshold in Lithuania is 45,000 EUR, which means that, as soon as the Lithuanian company reaches such turnover per year, it has to be registered as a VAT payer.

However, just like in many other jurisdictions, transactions which are either (i) exempt from VAT or are (ii) outside the scope of VAT, do not fall in the calculation of this turnover.

1.

Based on Law on VAT, financial services are exempt from paying the VAT. According to official explanations announced by the Lithuanian tax authorities, majority of crypto transactions fall under this definition, which means that income received from crypto-related operations does not contribute to the VAT registration threshold.

2.

As a general rule, services provided for entities established outside of the territory of Lithuania are outside the scope of VAT (some exemptions apply). This means that companies exporting the services (even taxable services, such as marketing or advisory) are allowed to not include turnovers generated by these services into the VAT registration threshold. Nevertheless, in certain cases Lithuanian companies might be liable for VAT registration due to acquisition of goods or services from abroad.

If under particular circumstances the VAT registration is not mandatory, the company can still apply for VAT registration voluntarily. In majority of cases, the motive behind this is clients requesting Value Added Tax deductions (for example, if they provide services which are outside the scope of VAT).

Contact us to receive consultation on the best VAT strategies tailored for your individual case, monthly VAT reporting services, VAT registration, corporate structuring, accounting, international tax advisory and other related subjects.

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Contact us at [email protected], by calling +971 56 591 0692 (UAE), +370 686 24426 (Lithuania/Europe) or drop us a message via our contact page. We will review your case and come back to you with potential solutions.

We look forward to speaking to you!