Taxes in Europe Database v2
The Law on Value Added Tax of the Republic of Lithuania (hereinafter – Law on Value Added Tax) No. I-345 adopted by Parliament of Republic of Lithuania on 1993/12/22 was valid from 1994/05/01 to 2002/06/30. It was replaced by the new Law on Value Added Tax No IX-751 which was adopted on 2002/03/05 and came into force on 2002/07/01. From 2004/05/01 the Law on VAT is fully in line with Sixth Council Directive No 77/388/EEC which was replaced by the Council Directive 2006/112/EC with effect from 1st January 2007.
VAT amounts are entered into the state budget.
All territory of the Republic of Lithuania included
Only supplier of new building and new building's land (24 months of building completion or substantial improvement)
Any taxable person who supplies goods or services within the territory of the country has the obligation to register as a VAT payer, calculate VAT and pay it into the state budget. However, a taxable person of the Republic of Lithuania whose total amount of consideration in the performance of its economic activities (with the exception of the supply of a new means of transport) during previous 12 months has not exceeded EUR 45,000 has a possibility neither to register as the VAT payer nor to calculate VAT and pay it into the budget. Nevertheless, such the person has a right to register for VAT purposes voluntary.
The obligation to register for VAT purposes arises also to the taxable person, who is not a VAT payer and who needs not to be identified for VAT purposes otherwise, or to the legal non-taxable person who acquires goods from other Member States within the territory of the country except the cases when the amount of intra-Community acquisition (excluding VAT) of goods (except for a new means of transport or goods subject to excise duty) is not in excess of EUR 14,000. If the threshold for registration is not exceeded the taxable person has a right to choose to register as the VAT payer.
Any other person who acquires a new means of transport or goods subject to excise duty from another Member State has the obligation to submit VAT returns and pay VAT.
Farmers registered as flat-rate farmers holding of the Republic of Lithuania Law on the farmer who's agricultural area does not exceed 7 ha and who's total cost within a year (the last 12 months) for the economic activity of goods and services does not exceed the EUR 45,000 threshold.
The basic rule for calculation of taxable amount is that the taxable amount is the consideration (excluding the VAT itself) which has been or is to be obtained by the supplier of goods or services or on his behalf a third party.
Supply of goods when input VAT deduction on the goods is restricted.
Only VAT payers have the right to VAT deduction. VAT payers who have been identified for VAT purposes as such solely on the grounds of intra-Community acquisition of goods but are not engaged in any economic activity have no right to VAT deduction. Those and other persons have the right to VAT deduction only when they supply new means of transport to another Member State. A VAT payer may opt not to exercise the right to VAT deduction. A VAT payer has a right to deduct input VAT on goods and services is so far these goods and services are intended to be used for supply of VAT taxable goods and services or for supply of goods and services outside the territory of the country when such supply of goods or services would not be VAT exempt if effected within the territory of the country.
Only compensated from Compulsory Health Insurance Fund as a whole or part of it.
According to the Law on Value Added Tax the standard rate of VAT is 21 %.
Zero-rate of VAT (exemption with the right to deduction) is applied to export of goods, intra-Community supply of goods as well as certain other supplies and intra-Community acquisitions of goods and services set in the Law on VAT.
The reduced 5 % VAT rate applicable to the supply of pharmaceuticals and medical aids to persons who have the right to total or partial reimbursement of the acquisition expenses of these goods in accordance with the Law of Health Insurance; the reduced 9% VAT rate applicable to the supply of heat energy for housing heating and hot water supplied for housing is applicable until 1 July 2015, to the supply of books and non-periodic information publications and newspapers, magazines and periodical publication (except for those of erotic, violent nature or publications that do not comply with professional ethical requirements).
Reduced 9 per cent rate for accomodation services is aplicable from 1 January 2015.
The VAT amount payable into the budget for a tax period must be paid not later than by the end of the period for submitting the VAT return for the tax period.
A tax period is a calendar month. In some cases if all the income of a VAT payer from his economic activities during the preceeding calendar year did not exceed EUR 60,000, such a VAT payer can choose a calendar half-year as the tax period. The tax period of a natural person who is a VAT payer is a calendar half-year. The natural person can choose a calendar month as the tax period as well. A legal person or foreign taxable person VAT payer can choose tax period other than a calendar month if such a tax period is more convenient for the tax payer owing to the character of the financial accounting established by the foreign taxable parent company or a foreign taxable VAT payer:
If a tax period is a calendar month, the VAT return for the tax period must be submitted not later than by the 25th day of the next month.
If a tax period is a calendar half-year, the VAT return must be submitted not later than by the 25th day of the first month of the next half-year.
If a tax period is another tax period, the VAT return for the tax period must be submitted not later than within 25 days following the end of the period.
Import VAT for the goods imported must also be paid within the established terms. A taxpayer that has the right to payment suspension must pay import VAT not later than by 16th day of the next month for all the goods released for free circulation during the previous calendar month. The taxpayer that has no right to payment suspension must pay import VAT at the time of the execution of customs formalities (before release into free circulation). The right to payment suspension is granted to the taxpayers who submit to the customs authority the guarantee for the fulfillment of VAT duty.
VAT on the goods or services supplied is chargeable upon the issue of the VAT invoice or any other accounting document serving as the invoice for the supply of goods or services. When a VAT invoice or other document serving as an invoice is not issued, VAT becomes chargeable upon the occurrence of the events, which occurs first, either when the goods are delivered or the services are supplied, or the consideration for the supplied goods or services is received.
VAT tax is collected by local tax administrators. Import VAT is collected by regional customs offices.