VAT in Lithuania: Foreign person registration as VAT payer in Lithuania

In the companies, where the total amount of the consideration for goods and/or services supplied during a year (in the last twelve months) exceeded LTL 155,000 (EUR 45,000) starting with the month when the above threshold was exceeded, must calculate, in accordance with the procedure,  VAT on supply of goods and/or services and pay it into the budget.

The subdivision of a foreign taxable person located in the territory of the country where that foreign taxable person supplies goods and/or services within the territory of the country must calculate the VAT on the goods and/or services supplied by the foreign taxable person within  the territory of that country and pay the VAT into the budget. The subdivision must, following the prescribed procedure, file an application to register the foreign taxable person as a VAT payer, without regard to the exceptions indicated above in respect of the LTL 155,000 (EUR 45,000) threshold.

Failure to file an application for registration as a VAT payer or rejection of the application to register a taxable person as a VAT payer will not relieve him from the obligation to calculate the VAT on supply of goods and/or services by him and pay it into the budget where this is obligatory.

Foreign person registration as VAT payer in Lithuania

When begins to supply goods or services and the place of such a supply is Lithuania (with some exceptions that are discussed further in the notice);

If acquires goods in Lithuania from another EU member state (except the new means of transport or the goods which are subject to excise duties) and the value of such goods was above the limit of 35 000 LTL (EUR 10159) last calendar year or it is foreseen that the value of such goods will be above the limit of 35 000 LTL (EUR 10159) this calendar year;

If the Lithuania was chosen as the place for distance selling or the value of the goods supplied in Lithuania under the distance selling scheme is above the limit of 125 000 LTL (EUR 36283), or the goods supplied under the distance selling scheme are subject to excise duties.

The cases when the registration of VAT payer in Lithuania is not obligatory

the foreign person supplies in Lithuania only such goods or services which are exempted;

the foreign person supplies only such goods or services which are outside the scope of VAT;

the foreign person supplies only such goods or services on which 0% VAT rate is levied (there are some exceptions which are discussed further in the notice);

the foreign person supplies only such goods or services in respect of which the buyer under Art. 95 (2) – (4) is obliged to charge and pay VAT in Lithuania;

the foreign person acquires goods from another EU member state but the value of such goods does not exceed the limit of 35 000 LTL (EUR 10 159) during the calendar year or the goods acquired from the other EU member state are the new means of transport or the goods subjected to the excise duties;

the foreign person supplies goods under the distance selling scheme and the value of the goods which were brought to Lithuania during the calendar year does not exceed the limit of 125 000 LTL (EUR 36 283) (except the cases when the goods supplied are subjected to the excise duties).