Value added tax

According to the Law on VAT, the supply of goods or services shall be subject to Lithuanian VAT provided the following conditions are satisfied:

  1. the supply of goods and/or services is effected for consideration;
  2. the supply of goods and/or services according to the provisions of this Law on Value Added Tax is considered to be effected within the territory of Lithuania;
  3. the goods and/or services are supplied by a taxable person in the performance of his/its economic activities, i.e. acting as such.

A taxable person of Lithuania is not required to submit an application to register for VAT and to calculate and pay VAT to the budget for the supply of goods (excluding the other Member States to supply new vehicles) and (or) services provided if the total consideration for the economic activity of goods and (or) services provided in the Republic of Lithuania for the last 12 months did not exceed LTL 155,000 (EUR44,891).

The standard VAT rate is 21 %. The reduced VAT rates are as follows: 0 %, 5 % and 9 %.

  • 0 % VAT rate commonly is applicable to goods exported from the territory of European Community; goods transported from Lithuania and supplied to VAT payer registered in one of the member states; new cars supplied into other member state; certain transactions related with international trade (e.g. supplied goods delivered to free zone or warehouse and appropriate customs procedures executed); etc.
  • 9 % VAT rate is applicable to books and other irregular informational publications, newspapers, magazines and other periodical publications, with the exception of erotic and (or) of a violent nature or professional ethics neglecting publications as well as printed production where paid advertising takes more than 4/5 of the total area of the publicati0n. 9 % VAT rate is also applicable to the heating energy and hot water for residential premises until 31 December 2016, to the accommodation services defined in the legislation and services related to transport of passengers and their luggage by regular routes approved by the Ministry of Transport or municipalities.
  • 5% VAT rate applied to pharmaceuticals and medicine support devices, for the compensation in accordance with the budget and technical assistance means and their repair to the persons with disabilities.

The taxable period is one month. Under certain circumstances, the taxable period may be 6 calendar months or a period of other duration. The VAT statement for the taxable period must be submitted and the VAT must be paid after the end of the taxable period and before the 25th day of the next month.