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Generic Tax Name VAT
Tax name in the national language Pridėtinės vertės mokestis
Tax name in English Value added tax
Member State LT-Lithuania
Tax in force since 1994/05/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

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.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

VAT amounts are entered into the state budget.

 
Geographical Scope
Territories excluded (article 6 2006/112/EC)

All territory of the Republic of Lithuania included



Comments
 
Taxpayers
Included taxable persons doing occasional transactions (article 12 2006/112/EC)


Comments

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.


Special scheme for SMEs (article 281 2006/112/EC and following) None
Exemption
Graduated relief
Turnover threshold:
Comments

Common Flat-rate scheme for farmers (article 295 2006/112/EC and following) None
All categories
Some categories
Flat rate compensation percentage (general):
6.00 %
Flat rate compensation percentage for forestry:
6.00 %
Flat rate compensation percentage for fisheries:
6.00 %
Comments

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.


There is a special scheme on the following





Comments

Special derogations to continue to tax (annex X)




Comments

Special derogations to continue to exempt (annex X)













Comments


Comments
 
Tax object and basis of assessment
The following items are regarded as supply of goods and hence taxed under VAT (article 14 - 15 2006/112/EC)




Comments
  • The supply of goods or services is subject to VAT if the supply:
    1. is effected for consideration;
    2. is considered to be effected within the territory of the country;
    3. is effected by a taxable person in the performance of his economic activities, i.e. acting as such.
  • The intra-Community acquisition of goods for consideration within the territory of the country from another Member State is subject to VAT.
  • The scope of import VAT is importation of goods where under the Customs Code customs debt on importation is incurred due to the imported goods.

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.


The following items are regarded as supply of goods and hence taxed under VAT (article 18 2006/112/EC)



Comments

By derogation to article 26 paragraph 1, the following item(s) are not regarded as supply of services and hence not subject to VAT (article 26(2) 2006/112/EC)


Comments

By application of article 27 of 2006/112/EC, the following item is treated as supply of services The supply by a taxable person of a service for the purposes of his business, where the VAT on such a service, were it applied by another taxable person, would not be wholly deductible
Comments


Comments
 
Deductions, Allowances, Credits, Exemptions
Exempted sectors*

Exemptions:

  • Goods and services related to health care;
  • Social services and connected goods;
  • Education and training services;
  • Cultural and sports services;
  • Activities of non-profit making legal persons, other then mentioned above;
  • Postal services;
  • Public radio and television;
  • Insurance services;
  • Financial services;
  • Special marks;
  • Betting, gambling and lotteries;
  • Letting and leasing of property immovable by its nature;
  • Sale or other transfer of property immovable by its nature;

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.


Special Measures derogating from the normal VAT rules in accordance with Article 395 of Directive 2006/112/EC*

.



Comments
 
Rate(s) Structure
Standard VAT rate Rate: 21.00 %
Comments

Reduced rate 1

(article 98 of Directive - Annex III of Directive)
Rate: 5.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled
Hairdressing

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)
Comments

Only compensated from Compulsory Health Insurance Fund as a whole or part of it.



Reduced rate 2

(article 98 of Directive - Annex III of Directive)
Rate: 9.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled
Hairdressing

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)
Comments

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.



Special reduced VAT rate for specific regions (including articles 104 and 105 2006/112/EC) Rate:
Regions
Comments

Special provisions under article 110 2006/112/EC (existing provisions prior to 1991):No

Special provisions under articles 111 2006/112/EC:No

Special provisions under articles 112 2006/112/EC:No

Special provisions under articles 113 2006/112/EC:No

Special provisions under articles 114 2006/112/EC:No

Special provisions under articles 115 2006/112/EC:No

Special provisions under articles 116 2006/112/EC:No

Special provisions under articles 117 2006/112/EC:No

Special provisions under articles 118 2006/112/EC:No

Special provisions under articles 119 2006/112/EC:No

Special provisions under articles 120 2006/112/EC:No

Special provisions under articles 121 2006/112/EC:No

Special provisions under articles 122 2006/112/EC:No


Comments
 
Tax due date

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:

  1. it may not be longer than 60 days;
  2. beginning of the first tax period of the financial year and the end of the last tax period of a VAT payer must coincide with the beginning and the end of the relevant calendar year.

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.

 
Tax collector

VAT tax is collected by local tax administrators. Import VAT is collected by regional customs offices.

 
Special features
  • Compensatory VAT rate scheme for farmers. This special scheme is applied for the flat rate farmers who meet all the established requirements: the total amount of consideration during a year (the last 12 months) for goods and services supplied does not exceed the threshold EUR 45,000; they have registered a farmer's farm in accordance with the procedure laid down in the Law of the Republic of Lithuania on the Farmer's Farm or have documents evidencing allotment of land for a personal farm; the registered land area of a farmer's farm or the area of land allotted for a personal farm does not exceed seven hectares. The flat rate farmer has the right to be registered as a VAT payer. If a farmer is registered as a VAT payer the provisions of this scheme can not be applied to him.  Flat rate farmers have the right to receive from the purchasers/customers, provided they are taxable persons, compensation. The amount of the compensation is calculated on the amount of consideration paid by purchasers/customers for agricultural products and/or agricultural services supplied by flat rate farmers. The amount of the compensation, stated in documents, is deductible by the purchaser/customer of agricultural products and/or services who is a VAT payer like any other input VAT.
  • Taxation scheme for travel agents. This special scheme is applied only to those tourist services which are acquired by the VAT payer (travel agent) from third persons and subsequently provided to the final consumer in his own name. The taxable amount of any service provided by the travel agent to the final consumer is the travel agent’s margin. A travel agent has no right to deduct input VAT which has been paid or is payable to the third persons for the tourist services acquired from them.
  • Taxation scheme for second-hand goods, works of art, collectors’ items and antiques. This scheme is applied in the case when a VAT payer supplies second-hand goods, works of art, as well as collectors’ items and/or antiques. The taxable amount is seller’s margin calculated in accordance with the established procedures. When a VAT payer calculates VAT in respect of the supply of these goods on the margin, he has no right to deduct any input VAT on these goods.
  • VAT scheme for investment gold. Under this scheme the supply, acquisition from another Member State and import of investment gold is exempt from VAT. Irrespective of the fact that the supply of investment gold is VAT exempt, the VAT payer has the right to deduct input VAT on purchased gold and certain services.
  • Special scheme for telecomunications, broadcasting and electronic services. Under this scheme the taxable person established outside the Community supplying telecomunications, broadcasting and electronic services within the European Community to non-taxable persons of different Member States has the right to choose to be identified for VAT purposes only in one Member State and to discharge through that Member State his tax  related obligations on the whole territory of  the European Community.
 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d211

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 8,717.89 LTL 26.15
2011 8,437.80 LTL 26.99
2010 7,528.83 LTL 26.86
2009 6,770.42 LTL 25.14
2008 8,953.30 LTL 27.38
2007 8,046.50 LTL 27.71
2006 6,303.30 LTL 26.18
2005 5,138.40 LTL 24.47
2004 4,058.70 LTL 22.25
2003 3,835.50 LTL 23.01
2002 3,843.30 LTL 25.28
2001 3,544.30 LTL 24.97
2000 3,470.50 LTL 25.96
1999 3,466.50 LTL 27.27
1998 3,612.10 LTL 27.74
1997 3,347.80 LTL 28.55
1996 2,279.50 LTL 23.47
1995 1,994.90 LTL 25.69

Comments