VAT in Lithuania

1. What is the VAT in Lithuania?

Since 2009, the VAT rate in Lithuania is 21%. There are also some exceptions from this standard rate. Books and newspapers are subject to a VAT rate of 9%, as well as accommodation or the supply of heat and hot water. A 5% VAT rate applies for medicines in Lithuania. Services such as insurance, banking or financial services are exempt from VAT in Lithuania.

2. How can I get a VAT refund in Lithuania?

Companies may request a VAT refund in Lithuania. The application may be submitted with the local tax authorities office or electronically, via the official website of the tax authorities in Lithuania. The procedure for VAT refund in Lithuania is completed by the tax authorities, no matter what type of submission one chooses.

3. How can I register for VAT in Lithuania?

A company in Lithuania must register for VAT purposes if the annual turnover exceeds 100,000 LTL, which is the equivalent of approximately 29,000 EUR. Foreign entities are however obliged to register for VAT as soon as the company begins its activity and starts performing transactions in Lithuania. VAT registration in Lithuania is not an exhaustive procedure, since the whole process is completed within 7-12 days. It is however important to know that retrospective VAT registration is not possible in Lithuania. When it comes to foreign companies, it is compulsory for the owners to appoint a fiscal agent that handles the procedure for VAT registration in Lithuania. 

4. How does intra-community VAT work in Lithuania?

Lithuania is part of the European Union and, as a member state, intra-community supplies of goods and services are zero-rated when it comes to Value Added Tax. The VAT rate for exports of goods and services from Lithuania is also 0%.