As a member state of the European Union (EU), Lithuania imposes a value-added tax (VAT) on goods and services sold to businesses and consumers within its borders. So if you’re doing business in Lithuania, you need to understand and comply with its VAT rules and regulations.
This guide will explain the details about Lithuanian VAT, including rates, how to register and collect VAT, and how to opt in to plans that simplify VAT collection and reporting, so you can make sure your company complies with relevant laws.
How VAT works in Lithuania
Lithuania’s VAT is called Pridėtinės vertės mokestis (PVM), and both resident and non-resident businesses may be obligated under Lithuanian law to register to collect VAT under certain circumstances. There are three tax rates, in addition to a 0% rate that applies to some goods and services. In addition, some goods and services are exempt from VAT.
Lithuanian VAT rates
Lithuania recently changed its rates; the rates listed below went into effect in January 2026.
- 21% standard VAT rate: Applies to all taxable goods and services that are not exempt or subject to a reduced rate.
- 12% reduced VAT rate: Applies to certain domestic passenger transport, hotel accommodations, and cultural events.
- 10% reduced VAT rate: Applies to some insurance policies, not including life insurance policies.
- 5% reduced VAT rate: Applies to printed and electronic books with limited advertising, as well as certain pharmaceutical products and medical equipment.
- 0% rate: Applies to intra-Community supplies of goods, exports, and certain international transport services.
Certain educational materials and services are exempt from VAT, as are some gambling activities (subject to specific conditions under Lithuanian law).
Registering for VAT
Companies selling to Lithuanian customers may be required to register for VAT in Lithuania and collect VAT on taxable sales. Registration requirements differ for resident and non-resident businesses.
Resident vs. non-resident businesses
Businesses established in Lithuania must register for VAT once their annual taxable turnover exceeds €45,000.
Non-resident businesses have no VAT registration threshold under Lithuanian law and may be required to register from their first taxable sale, unless they are part of an EU simplification program.
For EU distance sellers, a €10,000 EU-wide cross-border sales threshold applies. Once this threshold is exceeded, sellers must either register for the One-Stop Shop, or OSS (more on this later), or register for VAT in each EU country where customers are located, including Lithuania.
Businesses that store goods in Lithuania, including those participating in a Fulfillment by Amazon (FBA) program that includes Lithuania, must register for Lithuanian VAT regardless of sales volume.
Who needs to register
Companies that must register include:
- Lithuanian businesses with an annual taxable turnover exceeding €45,000.
- Non-resident businesses making taxable sales in Lithuania without using the OSS.
- Distant sellers that choose VAT registration instead of using the OSS.
- Businesses storing inventory in Lithuania, including FBA sellers.
How to register
You can register for VAT on the website of the Lithuanian State Tax Inspectorate. You’ll need to submit the required forms and can expect to receive your VAT number within four weeks.
Working with a tax representative in EU countries
Non-EU businesses may be required to appoint a fiscal representative, depending on their activities and registration method.
When to charge tax
If you meet the registration requirements and are selling into Lithuania, you must charge VAT on all items that are not zero-rated and not exempt.
It’s important to keep up with changing rules on what items are taxable so you can charge the correct tax rate on all eligible sales.
Exceptions include when the reverse charge mechanism applies or if you are selling on a marketplace that is a deemed seller.
Reverse charges
Within EU countries, the reverse charge mechanism aims to simplify the collection of VAT and allow some distant sellers to reduce the number of situations in which they need to register.
Under the reverse charge system, a registered company in Lithuania that buys goods and services becomes responsible for paying the VAT instead of the seller. The buyer calculates the VAT due and reports it on their return, claiming any allowable deductions at the same time.
This greatly simplifies cross-border sales by making the Lithuanian company responsible for complying with VAT obligations. Note that the reverse charge applies only to specific B2B transactions and does not generally eliminate VAT registration requirements.
B2B vs. B2C
Your VAT obligations may vary depending on whether you are selling to businesses (B2B) or to customers (B2C). If you are engaged in B2C transactions, you may be able to fulfill obligations through participation in the One-Stop Shop (OSS) or Import One-Stop Shop (IOSS), while the reverse charge mechanism can apply to B2B transactions to shift VAT obligations to registered buyers.
Marketplace facilitators
You may sell to Lithuanian customers indirectly through a third-party marketplace. If this is the case, there are certain circumstances when that marketplace becomes a “deemed seller”: responsible for managing VAT obligations created by the transaction.
Marketplaces may be deemed sellers when they facilitate the supply by setting terms, processing payments, or arranging delivery.
Simple payment processors like Stripe, for example, don’t fit into this category — but platforms like eBay and Amazon do. These third-party marketplaces also feature their brand more predominantly than the brands of individual sellers on their marketplaces, which also contributes to them being deemed sellers.
You don't have to collect VAT on transactions that take place on these marketplaces because the deemed sellers do it for you.
VAT deductions
When you submit VAT returns, you must include both output and input VAT. You are allowed to deduct input VAT related directly to your company’s taxable transactions, provided you report it on your returns and have a VAT-compliant invoice. These deductions can reduce the total amount you must pay.
Statute of limitations
There is a five-year statute of limitations for VAT collection in Lithuania, which extends to 10 years in cases of fraud or intentional tax evasion.
Staying compliant with Lithuania VAT regulations
Registering for VAT in Lithuania is just the start of your obligations. In fact, there are additional rules to follow beyond just collecting VAT at the appropriate rate. Here are details on some of your other obligations.
Invoicing requirements
Under Lithuanian law, invoices must contain:
- The date the invoice was issued.
- A sequential and unique invoice number.
- Contact details for both customers and suppliers.
- Details about the quantity of goods and a description of the goods.
- The date of supply when it’s not the same as the invoice date.
- Applicable VAT rates and VAT amounts due broken down by rate.
- Evidence supporting zero VAT
- The total gross value.
Filing VAT returns
VAT returns are typically filed monthly, though some taxpayers may qualify for quarterly filing. If you have an annual turnover of less than €300,000, quarterly filings are permitted. Otherwise, you will need to file monthly. You must submit all VAT returns electronically.
If your business moves goods and has €500,000 or more in arrivals and €300,000 or more in dispatches, you must file Intrastat declarations. Note that these thresholds are subject to change.
Filing deadlines
You are required to file your VAT forms on the 25th day of the month after the reporting period.
Record-keeping requirements
Records should be kept for a period of 10 years.
Risks of noncompliance
There are always risks to not fully complying with tax laws, including for not following Lithuania’s rules for when you must register, collect VAT, and file returns.
Potential consequences include audits, fines, fees, interest, penalties, and lost future opportunities due to the unpaid tax debt, reputational damage, and risk of legal action against your company.
If you miss submitting a VAT return, you can be fined between €200 to €390 while you pay interest at a daily rate of 0.03% if you have unpaid VAT.
You don’t want to take a chance on facing any of these penalties, so making sure you understand and comply with the laws of Lithuania is a must for any business selling to customers within this country.
Tips on staying compliant
The best and easiest way to stay compliant with Lithuania VAT regulations is to take advantage of software tools that make this process effortless. You can also explore EU programs that simplify the registration and filing requirements like the One-Stop Shop and Import One-Stop Shop.
One-Stop Shop and Import One-Stop Shop
If you are selling goods or services in Lithuania and in multiple other countries, following different VAT rules is undoubtedly difficult. However, there are some options to simplify the process. Participating in the One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) can be one of the best ways to make tax compliance easier.
OSS is geared towards businesses operating in an EU country that sell to other countries. IOSS is geared towards any company importing goods into the EU, including non-EU companies that do business elsewhere, including in the United States. IOSS is an option for imports valued at €150 or less.
Under both OSS and IOSS, your company only has to register with a single member country instead of every one where you meet the registration requirements. Instead of submitting separate VAT forms to all of the different countries where you are required to, you get to submit one form under the OSS or IOSS scheme.
You will charge the VAT based on where the customer lives at the point of purchase, report it on your single return, make your required VAT payments, and the funds will be distributed appropriately. This can make it much easier to ensure you are paying the taxes owed in Lithuania and beyond without having to register with multiple EU member states.
Software solutions
Although OSS and IOSS can help make selling to consumers easier, and the reverse charge rules can simplify B2B transactions, there are still many complex rules to follow. Numeral can make complying with those rules effortless.
Numeral handles every aspect of sales tax compliance for you, in more than 70 other countries (including Lithuania). Numeral can track your sales to determine whether registration is necessary, register you when required, collect the right VAT on transactions, and submit the required forms and payments.
With Numeral, sales tax is something you spend a few minutes on, not a major business issue for your company to solve.
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Final thoughts
If you are selling into Lithuania or any EU country, you need to know VAT tax rules and make sure you are in full compliance. Numeral can handle all of your tax obligations for you so you can focus on growing your business and building your success story. Contact us today to find out what Numeral can do for you.
