VAT is an indirect tax applicable to create value added. Only a taxable person who is registered as a VAT payer shall have the right to VAT deduction. Taxable persons shall have the right to deduct an input VAT on the goods and services acquired (imported) only in so far as the goods and services are used for the purposes of taxable transactions after registering as a VAT payer.
It is compulsory to register as a VAT payer in these cases:
- Lithuanian natural (legal) persons, investment funds provide goods and/or services in the territory of the country, and the total amount of consideration from such economic activities per year (over the past 12 years) exceeds EUR 45,000.
- Persons of a foreign country provide goods or services in Lithuania from the day of commencement of their business activities in Lithuania, i.e. irrespective of the threshold of EUR 45,000 established for a person of the Republic of Lithuania.
- Persons of the Republic of Lithuania and of foreign countries acquire goods (other than new vehicles or excisable goods) in Lithuania from other EU Member States, the value of which over the calendar year exceeds EUR 14,000.
- A person of foreign country supplies and transports goods in Lithuania, the value of which over the calendar year exceeds LTL 125,000.
Voluntary registration as a VAT payer:
Persons providing goods and/or services in the territory of the country, where the total amount of consideration from such activities over the past 12 months is under EUR 45,000, or persons commencing their business activities, as well as person carrying out business activities outside the territory of the country if it is possible to deduct the input/or import VAT on goods and/or services used for such activities may be registered as VAT payers on a voluntary basis.
- Increasing share capital;
- Decreasing share capital;
- Restructuring of the companies;
- Reorganization of the companies;
- Liquidation of the companies
- Prepare documents for the purpose of granting a VAT code to the company.
- Represent client at the State Tax Directorate and the State Social Insurance Fund Board of the Republic of Lithuania under the Ministry of Social Security and Labor.
- VAT code shall be granted 4 to 7 working days.