VAT Registration in Lithuania (Lithuania 2025 Update): Legal Thresholds and Rules for 2026

VAT Registration in Lithuania is one of the first compliance issues foreign founders, expats, and growing businesses face when operating in Vilnius, Kaunas, Klaipėda, or anywhere in Lithuania. Registering (or failing to register) at the right time affects invoicing, pricing, cash flow, and even your ability to work with Lithuanian and EU counterparties.

In 2026, the key legal question is simple: when does Lithuanian law require VAT registration, and what is the correct procedure with the State Tax Inspectorate (VMI)? The practical answer depends on whether you are established in Lithuania, what you sell, where your customers are located, and whether special EU VAT schemes (like OSS or the EU SME scheme) apply.

Below is a local, compliance-focused guide to thresholds, rules, documents, and the typical registration process used in practice.

---

Legal Background in Lithuania (VAT Registration in Lithuania Rules)

Lithuanian VAT is governed mainly by the Law on Value Added Tax (PVMĮ) and administered by the State Tax Inspectorate (VMI). Lithuania’s VAT system is harmonised with EU VAT rules, so cross-border trade (EU supplies, imports/exports, and services) often triggers VAT obligations even when local turnover is not high.

The core concept: “taxable person” and “economic activity”

If you carry out economic activity (selling goods/services) as a business, you are typically a taxable person for VAT purposes. VAT registration becomes mandatory when:

• you exceed the mandatory registration threshold (for businesses established in Lithuania), or
• you perform certain transactions where no threshold applies (common for non-established businesses), or
• you make specific EU-related acquisitions/supplies that trigger VAT obligations.

The VAT registration threshold: what to expect in 2026

For Lithuanian-established businesses, many sources still refer to a €45,000 threshold (historically applied as turnover over the last 12 months). However, Lithuania has been moving toward higher thresholds under policy changes linked to the EU small business regime, with frequent references to:

• a rise to €55,000 in 2025 (implementation date and scope depend on the final legal text and transitional rules), and
• a planned/expected increase to €60,000 from 2026 in multiple tax-policy updates and commentary.

Practical compliance note: because thresholds can be changed by amendments and effective dates matter, verify the current mandatory threshold and its start date in VMI guidance or your Mano VMI environment before relying on a single figure for registrations planned around year-end or during legislative transitions.

Non-established businesses: often “first taxable sale”

If your business is not established in Lithuania but you make taxable supplies that require you to charge Lithuanian VAT, the rule is often effectively no turnover threshold (you may need registration from the first taxable transaction), unless a reverse-charge or EU simplification removes the need.

How turnover is counted (typical approach)

The threshold test normally looks at taxable turnover in Lithuania over a rolling period (commonly the last 12 months). In practice, certain items may be excluded from the calculation (for example, some exempt supplies or sales outside Lithuania), but the details depend on the transaction type.

---

Step-by-Step Legal Process for VAT Registration in Lithuania

Below is the process most businesses follow in Vilnius, Kaunas, and Klaipėda when registering with VMI.

1. Map your VAT “trigger”

   • Are you established in Lithuania or operating cross-border?
   • Are you selling B2B (often reverse charge) or B2C (often VAT-charging obligations)?
   • Do you exceed the applicable Lithuanian threshold (if established)?
   • Are you doing transactions that require VAT registration regardless of turnover?

2. Confirm whether an EU VAT simplification applies Common examples:

   • OSS (One-Stop Shop) for certain B2C EU sales (may reduce the need for multiple local registrations).
   • Reverse charge for many B2B services, where the customer accounts for VAT.
   • EU SME rules can affect certain cross-border scenarios for small businesses (eligibility is fact-specific).

3. Prepare registration data and supporting documents VMI typically expects clear evidence of:

   • who you are (entity/individual),
   • what you do (economic activity),
   • why you must (or want to) register,
   • how you will invoice and keep records.

4. Submit the VAT registration application In practice, VAT registration is commonly done electronically through VMI systems, using the relevant application form (commonly referenced as FR0388) via Mano VMI (or through an authorised representative).

5. Respond to VMI questions (if requested) VMI may request clarifications, especially where:

   • the activity is cross-border,
   • the business has limited local history,
   • the facts suggest potential VAT risk (e.g., high-value trading, missing substance, unclear contracts).

6. Receive your Lithuanian VAT number and implement VAT compliance After registration, you must:

   • issue VAT-compliant invoices (where required),
   • apply correct VAT treatment (standard rate, reduced rate, exempt, reverse charge),
   • file VAT returns on time (even “nil” returns, if applicable),
   • keep proper VAT records.

7. Maintain ongoing compliance Ongoing obligations often include:

   • updating VMI if key data changes (director, address, activity),
   • correct VAT coding for EU and non-EU transactions,
   • evidence retention (contracts, transport documents, proof of export/intra-EU supply).

---

Key Legal Requirements & Documents (VAT Registration in Lithuania)

The exact document list depends on whether you are a Lithuanian-established entity, an EU business, or a non-EU business.

Commonly required information (most cases)

• Company/legal person details (name, registration code, registered office)
• Management details (director/authorised person identification)
• Description of business activity and VAT-relevant flows
• Expected turnover and customer/supplier profile
• Bank account details used for business
• Evidence supporting the need to register (contracts, orders, invoices, logistics)

Typical supporting documents (often requested)

• Extract from the company register (or equivalent foreign registry extract)
• Articles of association (or incorporation documents)
• Proof of authority (director appointment, or power of attorney if a representative files)
• Contracts with Lithuanian/EU counterparties, or proof of planned transactions
• Proof of establishment/substance (as applicable)

Special attention for foreign businesses

Foreign businesses should pay particular attention to:

• whether Lithuanian VAT registration is required from the first taxable sale (no threshold),
• whether a fiscal representative is required or strongly advisable in certain non-EU scenarios (this is fact-specific and depends on the activity and administrative approach).

---

Common Legal Mistakes to Avoid

1. Assuming the Lithuanian threshold always protects you The domestic threshold is mainly relevant to businesses established in Lithuania. Foreign businesses can face VAT obligations without a turnover cushion.

2. Using the wrong turnover calculation Businesses often miscount:

   • which supplies are “taxable turnover,”
   • whether the period is rolling (e.g., last 12 months),
   • whether certain transactions should be excluded.
     This leads to late registration and penalties.

3. Registering late and issuing incorrect invoices If you should have been registered earlier, the risk is:

   • VAT assessed retroactively,
   • invoice corrections and customer disputes,
   • interest/penalties depending on the situation.

4. Confusing OSS/reverse charge with “no VAT compliance” OSS and reverse charge can reduce the need for local charging, but they do not remove:

   • recordkeeping requirements,
   • correct invoice wording,
   • reporting obligations where applicable.

5. Not filing returns after registration Once registered, you may need to file VAT returns even in months with no sales (depending on your assigned tax period and status).

6. Ignoring Lithuanian “local reality” checks VMI may scrutinise registrations where activity is unclear or documentation is thin. Prepare a clear, consistent explanation of:

   • business model,
   • supply chain,
   • customers,
   • invoicing and VAT treatment.

---

Frequently Asked Questions (FAQ)

1) What is the VAT registration threshold in Lithuania in 2026?

Traditionally, Lithuania applied a €45,000 threshold for businesses established in Lithuania (tested on turnover over a rolling period). Policy updates have repeatedly referenced increases (including €55,000 in 2025 and €60,000 from 2026) with effective dates depending on final amendments and transitional rules. For planning and risk control, confirm the currently effective figure via VMI guidance/Mano VMI.

2) Can I register voluntarily for VAT in Lithuania?

Yes. Voluntary VAT registration is generally possible (and sometimes commercially useful), especially for B2B businesses that want to reclaim input VAT or meet customer expectations. The decision should be tested against compliance cost and your client base.

3) Do foreign companies need VAT registration in Lithuania even without a Lithuanian office?

Often, yes—particularly where you must charge Lithuanian VAT on local taxable supplies and no reverse-charge simplification applies. Many guides describe no turnover threshold for non-established businesses in common scenarios.

4) How do I apply for VAT registration in practice?

VAT registration is typically completed electronically via VMI systems (Mano VMI). In practice, the VAT application form commonly referenced is FR0388, with attachments depending on the case.

5) How long does VAT registration take?

Timing varies by case complexity and documentation quality. Straightforward cases can move quickly, while cross-border or higher-risk profiles may take longer due to questions and document requests. Plan for extra time if your business model is complex or you are registering a foreign entity.

6) What happens if I should have registered earlier?

Common consequences include:

• obligation to account for VAT from the correct effective date,
• invoice corrections,
• interest and potential penalties depending on the facts.
  If you suspect late registration, address it early and document your turnover and transaction analysis.

---

Conclusion

VAT Registration in Lithuania is not only a turnover-threshold question. In 2026, businesses in Vilnius, Kaunas, and Klaipėda should assess VAT triggers based on establishment status, transaction type, and EU cross-border rules—then align invoicing and reporting accordingly.

If your activity involves cross-border supplies, marketplace models, imports, or mixed B2B/B2C sales, the safest approach is to document your VAT position (threshold test, place of supply, reverse charge/OSS applicability) before you start issuing invoices at scale. A short legal and tax review at the beginning often prevents costly corrections later.