Lithuania VAT Guide 2026

Overview — PVM System

The Lithuanian VAT system is administered by the State Tax Inspectorate (VMI). VAT is charged on the supply of goods and services in Lithuania, on imports of goods, and on intra-Community acquisitions from other EU member states. Businesses registered for VAT must charge VAT on their taxable supplies (output VAT) and can recover VAT incurred on business purchases (input VAT). The net difference is payable to or refundable by the tax authorities.

VAT Rates in Lithuania

Lithuania applies four VAT rates:

• 21% standard — applies to most goods and services, including general products, electronics, clothing, professional services, and construction
• 9% reduced — accommodation services, hotel stays, periodicals, newspapers, journals (print and electronic), and books
• 5% super-reduced — selected goods including certain pharmaceutical products, medical equipment, and books
• 0% zero — exports of goods outside the EU, intra-Community supplies to VAT-registered businesses in other EU states, international transport, and certain supplies related to international trade

Exempt supplies (without VAT recovery) include insurance, financial services (banking, lending), and certain educational services.

VAT Registration Thresholds

Businesses must register for VAT in Lithuania if:

• Domestic threshold: Annual taxable turnover exceeds EUR 45,000 (for Lithuanian-established businesses)
• Distance selling / intra-Community: Distance sales to Lithuanian consumers exceed EUR 35,000 in a calendar year

Voluntary registration is permitted for businesses below the threshold, which may be beneficial for recovering input VAT. Non-resident businesses making taxable supplies in Lithuania are generally required to register for VAT regardless of turnover, subject to certain exceptions.

VAT Filing and Payment

VAT returns (PVM deklaracija) must be filed electronically via the VMI portal (EDS). Filing frequencies depend on the taxpayer's status:

• Monthly filing: Required for businesses with significant VAT liabilities or those in specific sectors (e.g., fuel traders)
• Quarterly filing: Available for smaller businesses below certain turnover thresholds

VAT returns are due by the 25th day of the month following the end of the reporting period. The VAT payable must be paid by the same deadline. Late filing and late payment penalties apply.

EU VAT Rules — Intra-Community Transactions

As an EU member state (since 2004), Lithuania fully participates in the EU VAT regime:

• Intra-Community supplies: Sales of goods to VAT-registered businesses in other EU states are zero-rated (0%) provided the supplier has the customer's valid VAT number and evidence of transport
• Intra-Community acquisitions: Purchases of goods from other EU member states are subject to Lithuanian VAT at the applicable rate (reverse charge applies)
• EC Sales List: VAT-registered businesses must submit recapitulative statements (EC Sales Lists) for intra-Community supplies

Import VAT and Customs

Imports of goods into Lithuania from outside the EU are subject to import VAT at the applicable rate (standard 21%) and customs duties. Import VAT is generally payable at the time of customs clearance. Businesses registered for VAT in Lithuania can usually recover import VAT as input VAT, subject to normal rules. Deferred import VAT schemes may be available for qualifying businesses.

FAQs

What is the VAT registration threshold in Lithuania?

The domestic VAT registration threshold is EUR 45,000 in annual taxable turnover. For distance selling, the threshold is EUR 35,000.

Is VAT reclaimable for foreign businesses?

Non-EU businesses may reclaim Lithuanian VAT under reciprocal arrangements. EU businesses can reclaim VAT through the EU VAT refund portal (VIES).

Are there any VAT exemptions for small businesses?

Small businesses below the EUR 45,000 threshold are exempt from VAT registration but cannot charge VAT or recover input VAT. They may opt for voluntary registration.

Disclaimer

This guide provides general information about Lithuanian VAT (PVM) for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Lithuanian tax advisor or VMI directly for advice specific to your situation. InvestmentKit does not provide tax advice.