I carry out voluntary or compulsory VAT registration.
Let’s talk and I’ll advise you on whether voluntary VAT registration is worth it for you.
Lithuanian companies and individuals carrying out commercial activities are obliged to register for VAT when:
- the remuneration of the legal entity from economic activities subject to VAT (supply of goods/services) carried out in the territory of the country (Lithuania) exceeds €45,000 per annum (last 12 months);
- the legal entity purchases goods in Lithuania from other European Union (EU) Member States for more than EUR 14 000 in a calendar year;
- the legal person is controlled by a person who controls several legal persons and whose total revenue from the supply of goods/services in Lithuania per year (last 12 months) exceeds €45,000, or purchases goods in Lithuania from other EU Member States in a calendar year for more than €14,000 (excluding VAT). It should be noted that the obligation to calculate the total amount of the consideration of €45,000 and/or the total value of the goods purchased from other EU Member States (or required to be) and brought to Lithuania from other EU Member States for VAT purposes does not apply if the persons concerned are able to prove that:
- none of the management bodies and/or individual members of the management bodies of these controlled enterprises are the same person; and
the economic activities actually pursued by them are not of the same nature and they do not act for the benefit or in the interests of each other.
- A legal person intending to carry out an economic activity subject to VAT or already carrying out an economic activity subject to VAT but not exceeding the above thresholds may register for VAT voluntarily.
A foreign taxable person must register for VAT in Lithuania in the following cases:
- when he/she supplies goods and/or services which are subject to VAT in Lithuania (including when the goods are supplied from Lithuania or transferred from Lithuania to another EU country for business purposes), with the exception of the exceptions provided for in the VAT Law;
- if he acquires goods in Lithuania (excluding new vehicles and excisable goods) from VAT-taxable persons in other EU Member States, or from persons who are liable to be VAT-taxable persons, the value of which (excluding VAT paid or payable in the EU Member State from which the goods have been imported) exceeded EUR 14 000 in the previous calendar year, or the value of which is expected to exceed EUR 14 000 during the current calendar year. However, if the foreign taxable person carries out an activity for which he is entitled to recover (deduct) the input VAT paid in Lithuania on the goods and/or services acquired, he is not subject to the threshold of EUR 14 000 for the purpose of registration as a VAT payer;
- where the foreign taxable person carries out intra-EU distance selling of goods and/or supplies of telecommunications, radio and television broadcasting, electronically supplied services and the total value (excluding VAT) of the supplies of goods and/or services in the preceding or current calendar year exceeds EUR 10 000, unless the foreign taxable person is a registered participant in the OSS system and the VAT liability on these supplies of goods and/or services is settled via the OSS system. In the case of remote supply of new vehicles, there is no obligation to register for VAT in Lithuania, while in the case of remote supply of excisable goods, the obligation to register for VAT in Lithuania arises from the first euro.
A foreign taxable person must register as a VAT payer in Lithuania when the supply of goods and/or services is subject to 0 VAT rate in the following cases:
- supplies of goods to other Member States to VAT payers (Article 49 of the VAT Law);
- the supply of goods is dispatched to a third country (Article 41 of the VAT Law);
- the supply of goods is placed in temporary storage (Article 53(1)(1) of the VAT Act);
the supply of goods placed under a customs procedure of free zone, customs warehousing or inward processing (Article 53(1)(2) of the VAT Act)
- supplies of goods which are removed to a VAT relief warehouse (Article 53(1)(5) of the VAT Act);
- supplies of goods which, at the time of supply, are still subject to the VAT preferential warehousing arrangements (Article 53(1)(6) of the VAT Act);
- the supply of the services of an undisclosed intermediary in the case of intermediation in the supply of goods referred to in Article 53(1) of the VAT Act (Article 53(5) of the VAT Act);
- the supply of services which are directly connected with the goods referred to in Article 53(1)(3), (4) and (6) of the VAT Act (Article 53(6) of the VAT Act);
- supplies of goods placed under the customs warehousing procedure which give rise to an obligation to charge import VAT (Article 53(10) of the VAT Act).
I am a professional communicator with the National Tax Authority, so your company will not raise suspicions with the VAT authorities, your application for a VAT code will be granted and you will not be subject to an inspection.