According to the Law on VAT of the Republic of Lithuania (hereinafter referred to as the “Law”), a foreign taxable entity shall have the right to submit an application to be refunded the VAT paid in Lithuania only in the case where during that period in which the VAT paid is requested to be refunded it satisfies the following criteria:
- had no divisions/subdivisions in the Republic of Lithuania; and
- had not performed any activity which is subject to VAT in Lithuania, except the cases when it supplied only such services and goods the VAT on which, under the provisions of the Law, must be calculated and paid by the purchaser.
VAT may be refunded to the foreign entity if the goods and services acquired are designated for economic activity of that foreign entity, which is granting right to deduct VAT in the country of its establishment.
VAT paid by the foreign taxable entity in respect of the goods and/or services, the input and/or import VAT whereof shall, under the provisions of the Law, in no case be deductible by VAT payers, shall not be refundable to foreign taxable entities. VAT is also not refundable if supply of goods and services was not subject to VAT.
According to the Directive 2008/9/EC, so called ‘VAT package’ was introduced starting 1 January 2010. In order to refund VAT paid in other EU country, a taxable entity may apply to the tax authorities in the country of its establishment. The refund of VAT may be performed directly or through the authorized representative established in any of the EU country.
Taxable entities or their representatives intending to refund VAT from other EU member states has to be registered with the EPRIS system through the local tax authorities.
Specific VAT legislation requirements
The application to refund VAT must be submitted not later than until 30 September of the following year for the preceding calendar year.
The application to refund VAT may be submitted electronically together with the attached copies of the VAT invoices in jpeg, tiff, pdf or zip formats. Copies of the VAT invoices are required then taxable value of the goods or services exceeding EUR 1,014 and EUR 261 in case of acquisition of fuel.
According to the Lithuanian VAT legislation, the minimum refundable amount is:
- EUR 400 if the request is presented for the term less than calendar year but not less than 3 calendar months of that calendar year;
- EUR 50 if the request is presented for the entire calendar year or part of the term remaining until the end of the calendar year which is less than 3 calendar months.
A foreign taxable entity may present application to refund VAT for the period, which is:
- not longer than calendar year and not less than 3 calendar months of that calendar year;
- less than 3 calendar months provided these months are the last months of the calendar year.
Note that codes of the goods and services acquired have to be stated in the application to refund VAT that are established in the Directive 2008/9/EC.
The decision to refund VAT (or refuse to refund) the tax authorities may take within 4 months from the application date if additional information was not requested; within 6 months – if request for additional information was made and within 8 months – if additional information was requested for several times.