Euroean Commision Lithuania

8/22/2019 Euroean Commision Lithuania

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EUROPEAN COMMISSION

DIRECTORATE GENERAL

TAXATION AND CUSTOMS UNION

Indirect Taxation and Tax administration

VAT and other turnover taxes

VAT in the European Community

APPLICATION IN THE MEMBER STATES

FACTS FOR USE BY

TAX ADMINISTRATIONS,

TRADERS,

INFORMATION NETWORKS, ETC.

Note

This document collates a range of basic informationon the application of VAT arrangements in theMember States which has been obtained from thetax authorities concerned.

The sole purpose of distributing details of nationalprovisions is to create a work tool. In no way doesthis document reflect the views of the Commissionof the European Communities. Nor does it signifyapproval of the relevant legislation.


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LITHUANIA

TABLE OF CONTENTS

GENERAL INFORMATION .............................................................................................3

VAT REGISTRATION OF FOREIGN TRADERS ...........................................................4

THRESHOLDS...................................................................................................................6

APOINTMENT OF TAX REPRESENTATIVES BY FOREIGN (NON-EU)TRADERS...................................................................................................................6

APOINTMENT OF TAX REPRESENTATIVES BY FOREIGN TRADERSESTABLISHED IN THE EU......................................................................................7

INVOICING........................................................................................................................8

RULES ABOUT INVOICING............................................................................................8

ISSUANCE OF INVOICES................................................................................................8

CONTENT OF INVOICES...............................................................................................10

ELECTRONIC INVOICING ............................................................................................11

STORAGE OF INVOICES...............................................................................................13

SIMPLIFIED INVOICES .................................................................................................14

PERIODIC VAT RETURNS ............................................................................................14

RECAPITULATIVE STATEMENTS..............................................................................15

ELECTRONIC RETURNS...............................................................................................16

ADMINISTRATIVE REQUIREMENTS.........................................................................17

RIGHT OF DEDUCTION ................................................................................................17

ANNEX 1: THRESHOLDS..............................................................................................19

ANNEX 2: VAT IDENTIFICATION NUMBERS...........................................................19

ANNEX 3: ABBREVIATIONS........................................................................................19


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GENERAL INFORMATION

1.IF A FOREIGN TRADER WANTS TO OBTAIN INFORMATION ABOUT YOURVAT SYSTEM,

WHOM SHOULD HE CONTACT?(ADDRESS, TELEPHONE, FAX, EMAIL)

A foreign trader may obtain information at the following address:

State Tax Inspectorate under the Ministry of FinanceVasario 16-osios g. 15LT 2600 Vilnius

Tel.: + 370 5 268 78 00Fax: + 370 5 212 56 04E-mail:[email protected]

2. WHAT IS THE ADDRESS OF THE NATIONAL TAX ADMINISTRATION WEBSITE? WHICHCATEGORIES OF INFORMATION ON VAT IS AVAILABLE ON THAT WEBSITE (GENERAL

INFORMATION, LEGISLATION, CONTACT POINTS, FORMS, ETC.)? AND IN WHICH

LANGUAGE(S)?

The Lithuanian tax authorities website is:www.vmi.lt

The website contains information on tax legislation, VAT explanatory notes, tax returnforms, application forms of a foreign legal person for registration in/ deregistration fromthe Tax Payer Register, application forms for registration in /deregistration from theVAT Payer Register, information on the VAT payers registered in/ deregistered from the

VAT Payer Register, the dendrogram of the Tax Information Centre and otherinformation. The major part of the information is available only in Lithuanian, but someof it can be also be found in English.

3.WHERE IS IT POSSIBLE TO FIND NATIONALVAT LEGISLATION AND REGULATIONS?IN

WHICH LANGUAGE(S) ARE THEY AVAILABLE?

National VAT legislation can be found on the website of the State Tax Inspectoratewww.vmi.ltor on the website of the Seimas of the Republic of Lithuaniawww.lrs.lt. Ingeneral, legislation is only available in Lithuanian. However, some of legislation can also

be found in English, for example, the Law on Value Added Tax.

Also available in English are the rules for filling-in an application form FR0445, forforeign taxable entities applying for a VAT refund approved by Order No 339 of 25

November 2002 by the Head of the National Tax Inspectorate under the Ministry ofFinance of the Republic of Lithuania. The rules for filling-in application form FR0227for a foreign legal person applying for registration in / deregistration from the TaxpayerRegister (hereinafter referred to as Form0227) approved by Order No VA-52 of 14June 2005 by the Head of the State Tax Inspectorate under the Ministry of Finance of theRepublic of Lithuania, are also available in English; Form FR0227 itself is presented

both in Lithuanian and in English.
mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.vmi.lt/http://www.vmi.lt/http://www.vmi.lt/http://www.vmi.lt/http://www.lrs.lt/http://www.vmi.lt/http://www.vmi.lt/http://www.lrs.lt/http://www.lrs.lt/http://www.lrs.lt/http://www.lrs.lt/http://www.vmi.lt/http://www.vmi.lt/mailto:[email protected]


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VAT REGISTRATION OF FOREIGN TRADERS

4. WHAT ARE THE CIRCUMSTANCES GOVERNING THE NEED TO BE REGISTERED FOR

VAT?

1) Normal registration

If a foreign trader makes taxable supplies (provides taxable services) inLithuania, he/she will be obliged to for VAT in Lithuania.

Traders whose transactions consist entirely of exempt or zero-rated supplies(services), also supplies (services) which are not subject to VAT or goods(services) in respect of which the obligation for VAT calculation is placed on the

purchaser are not required to register, with the exception of traders involved inintra-Community trade or supplies of goods under the VAT warehousing regime.

2)

Distance sellingAny person, established in another EU State, who sells goods and is responsiblefor their delivery to persons not registered for VAT in Lithuania, must register forVAT if the value of the sales exceeds LTL 125,000 (EUR 36,207) in the previousor current calendar year.

If the value of the sales falls below this threshold, the distance seller may opt tomake Lithuania the place of supply, and must consequently register for VAT inLithuania. In such cases, registration cannot be cancelled for two years form theregistration date.

3)

AcquisitionsAny person not registered for VAT in Lithuania, who acquires goods in Lithuaniafrom a supplier registered for VAT in another Member State, is required toregister for VAT if the total value of these goods exceeds LTL 35,000 (EUR10,138) in a calendar year.

A person may also register voluntarily. In such cases, registration cannot becancelled for two years form the registration date.

5.WHAT ARE THE SITUATIONS WHERE REGISTRATION IS UNNECESSARY BECAUSE THE

RECIPIENT OF THE GOODS OR SERVICES IS LIABLE FOR THE TAX?IN SUCH SITUATION, ISIT POSSIBLE TO REGISTER ON A VOLUNTARY BASIS?

If the Lithuanian customer accounts for the VAT as the goods or services are subject toreverse charge mechanism, there is no requirement for the supplier to be registered forVAT in Lithuania.

6. WHO SHOULD A FOREIGN TRADER CONTACT TO GET REGISTERED FORVAT?

(DETAILS ABOUT THE DEPARTMENT, INCLUDING ADDRESS, TELEPHONE AND FAX, E-

MAIL, ETC.))The application for registration must be submitted to the Local Tax Office (County StateTax Inspectorate) in the area where the permanent establishment is situated, or where the


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fiscal representative (if any) is established and registered as a taxpayer. A citizen of anyEU Member State, who is not established in Lithuania, may apply to any local tax office.

Information on the address and telephone numbers of the local tax offices can be foundon the website of the State Tax Inspectorate:www.vmi.ltor by contacting:

Mr Danas MikailionisHead of the International Information Exchange Department of the State TaxInspectorate under the Ministry of Financeermukni g. 3, LT-2600 Vilnius

E-mail: [email protected].: (+370~5) 268 7801Fax: (+370~5) 212 5673

7. PLEASE DESCRIBE THE DETAILED PROCEDURES (INCLUDING NECESSARY

DOCUMENTS) FOR ISSUING VAT IDENTIFICATION NUMBERS, SPECIFICALLY TO FOREIGN

TRANDERS.

If the foreign trader has an establishment in Lithuania, an application to register theforeign taxable person for VAT in Lithuania should be submitted via the establishment.

If the foreign trader is established in another Member State and has no establishment inLithuania, he/she must register for VAT directly or via a Lithuanian fiscal representative.

If the taxable foreign trader is established in a non-EU country and has no establishmentin Lithuania, he/she must authorise a Lithuanian fiscal representative to register thetaxable foreign person for VAT in Lithuania.

To register for VAT and obtain a VAT payers number, the application form for theregistration in the Register of Tax Payers and the application form for registration in theRegister of VAT Payers need to be filled in and submitted to the County State TaxInspectorate. Legal persons should use forms FR0227 and FR0388, while natural personsshould use forms FR0224 and FR0389. These forms are available at County State TaxInspectorates, or on the website:www.vmi.lt. Filled-in forms may be submitted on paperor by e-mail through the website.

When registering through a fiscal representative, the fiscal representative must providethe authorisation letter issued by the foreign taxable person. This authorisation letter

must be certified by a notary. The fiscal representative must also submit a certificateissued by a competent foreign authority confirming the place of residence of the foreigntaxable entity and, if the foreign trader is registered as a VAT (or equivalent tax) payer inthe foreign country, then a certificate confirming this must be provided.
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THRESHOLDS

8.WHICH THRESHOLDS DO YOU OPERATE AS REGARDS INTRA-COMMUNITY DISTANCE

SELLING UNDERARTICLE 34 OF VATDIRECTIVE (2006/112/EC)?

http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_EC_annexI.pdf

9.WHICH THRESHOLDS DO YOU OPERATE AS REGARDS ACQUISITIONS BY NON-TAXABLE

LEGAL PERSONS OR EXEMPT PERSONS UNDER THE SECOND SUBPARAGRAPH OFARTICLE

3 OF THE VATDIRECTIVE (2006/112/EC)?

http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_EC_annexI.pdf

APOINTMENT OF TAX REPRESENTATIVES BY FOREIGN (NON-

EU) TRADERS

10. WHAT ARE THE SITUATIONS IN WHICH THE APPOINTMENT OF A TAX

REPRESENTATIVE IS OBLIGATORY?

Taxable persons who are not established in Lithuania, and carry out economic

transactions subject to VAT for which they are liable and which is deemed to be incurredon the territory of Lithuania must appoint a fiscal representative.

11. WHAT ARE THE CONDITIONS GOVERNING THE APPOINTMENT OF A TAX

REPRESENTATIVE?

Any taxable person of the Republic of Lithuania may be a tax representative providedthat:

a) they have been registered as VAT payers in Lithuania for more than three years.

An exception to this rule is applied only to audit firms or attorneys at law;b) they provide services as lawyers, accountants, auditors or consultants on tax

matters;

c) during the past 12 months, they have had no tax arrears to the State budget orfunds the fiscal revenues of which are administered by the State Tax Inspectorate;

d) during the past 12 months have committed no offences against customs laws; and

e) have committed no other legal transgressions.

A foreign taxable person who intends to engage in trade exclusively at international

exhibitions may appoint the organiser of the international exhibition, who is a VATpayer, his fiscal representative, while a foreign person who is engaged in sales under
http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_EC_annexI.pdfhttp://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_EC_annexI.pdfhttp://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_EC_annexI.pdfhttp://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_EC_annexI.pdfhttp://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_EC_annexI.pdfhttp://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_EC_annexI.pdfhttp://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_EC_annexI.pdfhttp://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_EC_annexI.pdfhttp://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_EC_annexI.pdfhttp://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_EC_annexI.pdf


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commission contracts may appoint the commissionaire, who is a VAT payer, to be hisfiscal representative.

12.WHAT ARE THE RIGHTS AND OBLIGATIONS OF TAX REPRESENTATIVES?

The Lithuanian fiscal representative must calculate the VAT on the goods and/orservices supplied or acquired by the foreign trader, and pay the VAT due into theBudget. The fiscal representative must also submit VAT returns on behalf of theforeign trader.

The fiscal representative is jointly and severally liable, with the foreign taxableperson, for the performance of tax obligations in respect of VAT.

13.WHAT ACTION CAN YOU TAKE IN THE EVENT OF FAILURE BY A TRADER IN ANOTHER

COUNTRY TO DESIGNATE A TAX REPRESENTATIVE IN YOUR TERRITORY?

Any foreign trader failing to designate a fiscal representative in Lithuania will berefused registration for VAT.

If the foreign trader has not been registered as a VAT payer in Lithuania and suppliesgoods and/or services on the territory of this country, the purchaser (except private

persons) of those goods and/or services is obliged to calculate the VAT due and pay itinto the Budget.

14.IS IT NECESSARY TO SET UP A BANK GUARANTEE?

Foreign traders who apply for registration may be required to provide a guarantee, butonly if the tax administrator considers that the absence of a guarantee would entail anobvious risk of loss of duty.

APOINTMENT OF TAX REPRESENTATIVES BY FOREIGN

TRADERS ESTABLISHED IN THE EU

15.IS IT POSSIBLE TO APPOINT A TAX REPRESENTATIVE OR A TAX AGENT?

Traders established in the EU can choose either to register for VAT directly, or via atax representative. If they decide to appoint a tax representative, they should followthe same procedure as that described for traders established outside the EU.

16. WHAT ARE THE CONDITIONS GOVERNING THE APPOINTMENT OF A TAX

REPRESENTATIVE?

See answer to question 11.


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17.WHAT ARE THE RIGHTS AND OBLIGATIONS OF A TAX REPRESENTATIVE?


18.ARE THERE SITUATIONS WHERE IT IS OBLIGATORY TO SET UP A BANK GUARANTEE?


INVOICING

RULES ABOUT INVOICING

19. WHERE CAH THE RELEVANT RULES (LAWS, REGULATIONS, INSTRUCTIONS,

GUIDELINES) BE FOUND?

Issuance of invoices is regulated by:

- the Government Resolution No 780 of 29 May 2002,

- Articles 78, 79 and 80 of the Law on VAT.

National VAT tax legislation can be found on the website of the State Tax Inspectoratewww.vmi.ltor on the website of the Seimas of the Republic of Lithuaniawww.lrs.lt.

ISSUANCE OF INVOICES

20.CASES WHERE AN INVOICE NEEDS TO BE ISSUED

Under the Lithuanian Law on VAT, taxable persons registered for VAT are obliged toissue an invoice in the following cases:

o for supplies or services provided to taxable or non-taxable legal persons.If a supplier is a registered taxpayer of the Republic of Lithuania, thisrequirement is applied only for goods and services provided on theterritory of the country.

o for goods taxable under Article 12(3) (distance selling) of the Law onVAT;

o for goods taxable under Article 49 (intra-Community trade) of the Law onVAT;

o in certain cases, for advance payment received;
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o for goods or services consumed for private needs;

o for producing a durable tangible asset for ones own needs;

o in certain cases, where a legal entity transfers the asset as a contribution inkind or where the asset owned is transferred because of the reorganisation

of the legal entity or where an essential building is transferred forupgrading.

Persons not registered for VAT are obliged to issue an invoice for new transportmeans supplied within the Community.

VAT payers not registered in Lithuania must also issue invoices for goods sold tonatural persons provided they are sold on the Lithuanian territory (except where acash register receipt or sale-purchase receipt is issued, or for passenger transporttickets, or where insurance services are executed by issuing an insurance policy and inother cases provided for in law).

21.WHAT ARE THE RULES ON CORRECTIVE INVOICES(CREDIT/ DEBIT NOTES)?

Where after the formal execution of the supply of goods or provision of services, thetaxable value and/or the quantity of the goods or services changes or discounts areapplied, or the goods (or some part of them) are returned or the services refused or theremuneration payable by the customer changes, the issuer of the original accountingdocuments is obliged to issue a credit note.

By the mutual consent of the parties, the return of the goods or the refusal of the

services may be executed by the purchasers (customers) debit note provided thepurchaser (customer) is a VAT payer.

The credit note the credit VAT invoice must contain all the obligatoryinformation. It must also indicate that it is a credit invoice and, if possible, the data(date and number) of the original invoice and the reasons for the adjusting of theinvoice.

22.WHAT IS THE TIME LIMIT FOR ISSUING INVOICES?

An invoice must be issued immediately after the delivery of the goods or services. An

invoice for long-term services (telecommunications, rental, etc.), for long-termsupplies of electricity, gas or other kinds of energy must be issued by the tenth day ofthe next month following the supply of the goods or provision of the services.

23.WHAT ARE THE RULES FOR SUMMARY INVOICING?

Other cases where all the transactions for the supply of goods or provision of servicesduring a certain period of time are executed by one common invoice are defined inOrder No VA-57 of 21 April 2004 of the Head of the State Tax Inspectorate under theMinistry of Finance (allowing banks and other credit institutions providing certain

non-taxable financial services to issue one invoice for the entire year) and Order NoVA-58 of 23 April 2004 (allowing the issuance of one invoice for the retail sales offuel (engine petrol, diesel fuel, liquefied gas) during a month).


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24.WHAT ARE THE CONDITIONS IMPOSED ON SELF-BILLING?

By the mutual prior agreement by the purchaser and the seller, invoices may be issuedby the customer. Such an agreement must be made in writing. It must contain thesuppliers agreement (authorisation) that the purchaser may issue invoices on behalfof the supplier. The agreement must also indicate that the supplier agrees not to issue

invoices for the goods and services specified in the agreement and to accept theinvoices issued by the purchaser.

25. IS THERE ANY SPECIFIC RULE IN RELATION TO OUTSOURCING OF INVOICES TO A

PERSON WHO IS ESTABLISHED OUTSIDE THEEU?

No. However, the State Tax Inspectorate may introduce certain additionalrequirements relating to invoicing by persons established outside the EU. At themoment there are no additional requirements.

CONTENT OF INVOICES

26.UNDER WHAT CONDITIONS MUST THEVAT NUMBER OF THE CUSTOMER BE ON THE

TAX INVOICE?

In addition to other details, the invoice must contain also the VAT identification

number of the customer indicated by the customer at the time of the acquisition ofgoods or services.

27.ANY OTHER SPECIFIC RULES IN RELATION TO THE CONTENT OF THE INVOICE

Where an invoice is issued to a person who is entitled to an excise duty refund, theinvoice should indicate (if required by the purchaser) the amount of the excise duty.

In certain specific cases (for example, where the purchaser uses the goods andservices for personal needs or produces tangible assets himself, etc.) the invoicesshould contain additional information (i.e. references to the relevant provisions of theLaw on VAT or any other information relating to the accomplished fact).

However, absence of such information in the invoice does not affect the possibility ofdeducting input VAT.


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ELECTRONIC INVOICING

28. AS REGARDS INVOICES SENT WITH ADVANCED ELECTRONIC SIGNATURES, IS IT

OBLIGATORY TO USE QUALIFIED CERTICATED AND SECURE-SIGNATURE-CREATION

DEVICES?IF SO, PLEASE GIVE DETAILS?

Invoices sent by electronic means are accepted where advanced electronic signaturedefined by Law on Electronic Signature No VIII-1822 of 11 July 2000 of the Republicof Lithuania (as amended by Law No IX-934 of 6 June 2002) guarantees theauthenticity of the invoice origin and the integrity of its contents.

The Law is in accord with Directive 1999/93/EC of the European Parliament and ofthe Council of 13 December 1999 on a Community framework for electronicsignatures.

For the purposes of this Law, a qualified certificate means a certificate issued by acertification-service-provider who fulfils the requirements laid down by theGovernment or an institution authorised by it. The certificate must contain thefollowing details:

1) an indication that the certificate is issued as a qualified certificate;

2) the identification of the certification-service-provider and the State in which it isestablished;

3) the name and surname of the signatory or a pseudonym;

4) specific attributes of the signatory if it is necessary for the purpose for which thecertificate is intended;

5) signature-verification data which correspond to signature-creation data under thecontrol of the signatory;

6) an indication of the beginning and end of the period of validity of the certificate;

7) The identity code of the certificate provided by the certification-service-provider;

8) the advanced electronic signature of the certification-service-provider issuing it;

9) limitations on the scope of the use of the certificate, if applicable;

10)limits of the value of transactions for which the certificate can be used, ifapplicable.

For the purposes of this Law, a secure signature creation device means a signature-creation device which meets all the requirements laid down in this section:

1) the signature-creation-data used for signature generation can practically occuronly once, and their secrecy is reasonably assured;


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2) the signature-creation-data used for signature generation cannot, with reasonableassurance, be derived and the signature is protected against forgery usingcurrently available technology;

3) the signature-creation-data used for signature generation can be reliably protectedby the legitimate signatory against the use of others;

4) secure signature-creation devices must not alter the data to be signed or preventsuch data from being presented to the signatory prior to the signature process.

Qualified certificates created by foreign certification-service-providers are deemed to belegally equivalent to qualified certificates created by certification-service-providers ofthe Republic of Lithuania if:

1) They are created by a certification-service-provider accredited in the Republic ofLithuania;

2) They are created by a certification-service-provider accredited in a Member Stateof the European Union;

3) The certificate is guaranteed by a certification-service-provider of the Republic ofLithuania who fulfils the requirements for certification-service-providers creatingqualified certificates laid down by the Government of the Republic of Lithuaniaor an institution authorised by it;

4) The certificate is guaranteed by a certification-service-provider of a MemberState of the European Union who fulfils the requirements for certification-service-providers creating qualified certificates equivalent to those laid down bythe Government of the Republic of Lithuania or an institution authorised by it.

The Republic of Lithuania recognises certification-service-providers of othercountries and the certificates issued by them where their recognition is based oninternational agreements.

29. AS REGARDS INVOICES SENT BY ELECTRONIC DATA INTERCHANGE, IS AN

ADDITIONAL SUMMARY DOCUMENT ON PAPER OBLIGATORY? IF SO, PLEASE GIVE

DETAILS ABOUT ITS CONTENT AND PROCEDURE.

Invoices sent by electronic means are accepted in all cases where the authenticity oftheir origin and the integrity of their contents is guaranteed by electronic datainterchange (EDI) as defined in Commission Recommendation 94/820/EC of 19October 1994 relating to the legal aspects of electronic data interchange, and whereinterchange agreements provide for a procedure guaranteeing the authenticity andintegrity of data.

It is required to use EDI standards (UN/EDIFACT, XML standards). No additionalsummary document is required.


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30.DO YOU ALLOW INVOICES ISSUED PURSUANT TO SECOND PARAGPRAPH OFARTICLE

1 OF THE VAT DIRECTIVE (BY USING ANY OTHER ELECTRONIC MEANS)? IF SO,

UNDER WHICH CONDITIONS AND FORMALITIES?

No, at present Lithuania does not accept invoices issued by using any other electronicmeans.

31.ANY OTHER SPECIFIC RULE IN RELATION TO ELECTRONIC INVOICING?

No.

STORAGE OF INVOICES

32.WHAT ARE THE RULES ON THE PLACE OF STORAGE OF INVOICES?

Invoices must be stored in Lithuania, except in cases where the invoices are signed byusing electronic means.

Where the invoices are in electronic form, data ensuring the authenticity of their originand the integrity of their contents must stored together with the invoices. Taxable personsof the Republic of Lithuania must store those documents on the territory of the country

provided the documents are not stored by electronic means. Where taxable persons of theRepublic of Lithuania store documents by electronic means and ensure full access to the

documents (i.e. provide a possibility of obtaining those documents through electronicmeans, read them and use them in other ways provided for in the Law on TaxAdministration), the documents may be stored outside the territory of the country. In casethe documents are stored outside the territory of the country, the taxable persons of theRepublic of Lithuania must notify the local tax administrator of the place where thedocuments are stored.

33. IS PRIOR NOTIFICATION OF INVOICES STORED IN ANOTHER COUNTRY AN

OBLIGATION?IF SO, PLEASE SPECIFY.

If the invoices are stored (by electronic means) in another country, the taxable personsmust notify the tax administrator.

34.WHAT IS THE OBLIGATORY STORAGE PERIOD FOR INVOCES?

10 years.

35.WHAT ARE THE SPECIFIC RULES ON STORAGE FORM AND POSSIBLE CONVERSIONS?

Invoices must be stored in the form (on paper or electronic form) in which they wereissued or received. Throughout their storage period, the authenticity of their origin andthe integrity of their contents and readable must be preserved. Where invoices are


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stored by electronic means, the data ensuring their authenticity and the integrity oftheir content must be stored together with the invoices.

36.ANY OTHER SPECIFIC RULE IN RELATION TO INVOICE STORAGE.

It is not permitted to store invoices in countries where Directive 76/308/EEC andRegulation 1798/2003 are not applicable.

SIMPLIFIED INVOICES

37.WHAT ARE THE SITUATIONS WHERE SIMPLIFIED INVOICING IS ALLOWED PURSUANT

TO ARTICLE 238 OF THE VAT DIRECTIVE (2006/112/EC)? AND WHAT ARE THE

SPECIFIC RULES?

While selling goods and services in retail trade of fuels (engine petrol, diesel fuels,liquefied gas), the cash register receipt where the value of the goods (services)(including VAT) does not exceed LTL 500, containing all the data required for cashregisters by law, also the data identifying the purchaser of the goods (services), istreated as an invoice.

PERIODIC VAT RETURNS

38.UNDER WHAT CIRCUMSTANCES IS A TRADER OBLIGED TO SUBMIT AVAT RETURN?

All VAT registered traders are obliged to submit periodic VAT returns, whether or notthey carried out any transactions during the period in question.

39.AT WHAT INTERVALS AREVAT RETURNS AND ASSOCIATED PAYMENTS TO BE MADE?

As a general rule, the VAT period is one calendar month. The VAT due must be paid

and the VAT return submitted not later than the 25

th

day of the next month.If a tax period is a calendar half-year, the VAT due must be paid and the VAT returnsubmitted not later than the 25th day of the first month of the next half-year.

If a tax period is of a different duration, the VAT due must be paid and the VATreturn submitted within 25 days of the end of the tax period.

40.DOES A SPECIAL REGIME AS REGARDS PERIODICVAT RETURNS EXIST FOR SMALLER

TRADERS AND/OR CERTAIN CATEGORIES OF BUSINESS?IF SO, PLEASE DESCRIBE THEM.

If the VAT payers total income from their economic activities during the precedingcalendar year did not exceed LTL 200,000 (EUR 57,931), they can apply to the tax


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administrator to request a tax period of a calendar half-year. This right is also grantedto newly established VAT payers who estimate that, during the current calendar year,the income from their economic activities will not exceed the threshold of LTL200,000 (EUR 57,931).

The tax period of a natural person who is a VAT payer is a calendar half-year.

However, the natural person may apply to the local tax administrator to request a taxperiod of a calendar month.

A legal person or a foreign taxable VAT payer may apply to the local taxadministrator with a request to establish a tax period other than a calendar month, ifsuch a tax period is more convenient for the tax payer owing to the specifics of thefinancial accounting applied by the foreign taxable parent company or a foreigntaxable VAT payer. A different tax period shall be fixed subject to the following

provisions:

it may not be longer than 60 days,

the beginning of the first tax period of the financial year and the endof the last period of the VAT payer, must coincide with the beginningand the end of the relevant calendar year.

Those provisions are not applicable to VAT payers who acquire supplies from otherMember States.

41.DO YOU OPERATE SIMPLIFIED CALCULATIONS OF TAX LIABILITY?IF SO, WHAT ARE

THE QUALIFYING CRITERIA, TO WHOM DO THEY APPLY AND WHAT IS THE NATURE OF

THE SIMPLIFICATION?

No.

RECAPITULATIVE STATEMENTS

42.AT WHAT INTERVALS ARE RECAPITULATIVE STATEMENTS TO BE SUBMITTED?

Recapitulative statements must be submitted within 25 days of the end of the quarter.

43. IS ANY ADDITIONAL INFORMATION REQUIRED OTHER THAN THAT SET OUT IN

CHAPTER6RECAPITULATIVE STATEMENTSTITLE XI OF THE VATDIRECTIVE?

No.


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44. DO YOU OPERATE SIMPLIFIED PROCEDURES AS REGARDS RECAPITULATIVE

STATEMENTS AS PROVIDED FOR IN ARTICLE 269 OF THE VAT DIRECTIVE

(2006/112/EC)? IF SO, WHAT ARE THE RELATED THRESHOLDS FOR APPLYING SUCH

PROCEDURES?

No.

ELECTRONIC RETURNS

45.IS IT POSSIBLE TO SUBMIT VAT RETURNS BY ELECTRONIC MEANS?IF SO, HOW AND

USING WHICH TECHNOLOGY? WHO SHOULD BE CONTACTED TO APPLY TO SUBMIT

RETURNS ELECTRONICALLY?

VAT returns may be submitted electronically. The conditions and procedures for thesubmission of electronic returns are defined in the Rules for the Submission of TaxReturns by Electronic Means approved by Order No VA-133 of 9 July 2004 by theHEAD of the State Tax Inspectorate under the Ministry of Finance regarding theapproval of the Rules for the Submission of Tax Returns by Electronic Means.

A person may submit tax returns via the information system for electronic declaration ofthe State Tax Inspectorate or directly to the employee of the taxpayer service unit of thecounty state tax inspectorate in an electronic carrier or by e-mail.

Before submitting tax returns electronically, a person must conclude an agreement on thesubmission of tax returns forms electronically and become a registered user of theinformation system for electronic declaration. The aforementioned agreement can beconcluded in the following ways:

1. for legal entities in writing at the territorial department of the county state taxinspectorate in the area where the legal entitys registered office is located;

2. for natural persons in writing at the territorial department of the county statetax inspectorate in the area of the natural persons permanent residence or electronically.

The list of tax returns that can be submitted at present through the electronic declarationsystem is to be found on the website of the information system for electronic declaration

at the address: deklaravimas.vmi.lt

46.IS IT POSSIBLE TO SUBMIT RECAPITULATIVE STATEMENTS BY ELECTRONIC MEANS?

IF SO, HOW AND USING WHICH TECHNOLOGY?WHO SHOULD BE CONTACTED TO APPLY

TO SUBMIT RETURNS ELECTRONICALLY?

Returns can be submitted in the electronic form. The conditions and procedures for thesubmission of electronic returns see the answer at Point 45.


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ADMINISTRATIVE REQUIREMENTS

47. DO YOU OPERATE A FLAT-RATE SCHEME? IF SO, TO WHOM DOES THE SCHEME

APPLY?

There is a flat-rate scheme for farmer meeting certain requirements (the farmers farmmust be registered or the farmer must have documents confirming allocation of landfor individual farming, his land plot should not exceed 7 ha, the total income in thelast 12 month should not exceed LTL 100,000 (EUR 29,000).

48. DO YOU OPERATE SIMPLIFIED ADMINISTRATIVE REQUIREMENTS OTHER THAN

THOSE ALREADY MENTIONED?IF SO, PLEASE GIVE A DESCRIPTION

No.

49. IN WHICH LANGUAGE(S) ARE FORMS (PERIODIC VAT RETURNS AND

RECAPITULATIVE STATEMENTS) AVAILABLE OR TRANSLATED INTO?

Forms are available in Lithuanian.

RIGHT OF DEDUCTION

50. FOR WHICH CATEGORIES OF GOODS AND SERVICES IS THERE NO RIGHT OF

DEDUCTION?

There is no right of deduction for goods and services that are used for any purposeother than for the traders taxable business.

Input VAT may not be deducted on:

input and/or import VAT on goods and services intended for entertainment andrepresentation, if the expenses relative to their acquisition may not be subtracted

from the received income (subject to legislation regulating the taxation ofprofit/income) when calculating the taxable profit/income;

input or import VAT on a passenger car designed for the transportation of nomore than 8 people (excluding the driver) or on a motor vehicle of a classattributed to the category of off-road vehicles provided that the car will not besold or leased, used as a taxi or for driving instruction purposes. The samelimitations apply to the deduction of input VAT on the lease of cars of thecategories referred to above. These limitations are non-applicable only to motorvehicles of the categories referred to above if they are attributed to special

purpose motor vehicles under legal acts regulating the classification and coding

of vehicles;


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in put VAT on the service of passenger transportation by motor vehiclesdesigned for the transportation of no more than 8 people (excluding the driver),or a motor vehicle of the class attributed to the category of off-road vehicles;

No deduction may be made for goods or services where the seller applies themargin scheme. This provision applies to tourist services, second hand goods or

art collectors or antique items.

51.ARE THERE CATEGORIES OF GOODS AND SERVICES IN WHICH THERE IS A PARTIAL

RIGHT OF DEDUCTION?IF SO, WHAT IS THE PERCENTAGE?

No more than 75% of VAT may be deducted on representation expenses.


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ANNEX 1: THRESHOLDS

http://europa.eu.int/comm/taxation_customs/taxation/vat/traders/vat_community/in

dex_en.htm#annexI

ANNEX 2: VAT IDENTIFICATION NUMBERS


dex_en.htm#annexII

ANNEX 3: ABBREVIATIONS


dex_en.htm#annexIII
http://europa.eu.int/comm/taxation_customs/taxation/vat/traders/vat_community/index_en.htm#annexIIhttp://europa.eu.int/comm/taxation_customs/taxation/vat/traders/vat_community/index_en.htm#annexIIhttp://europa.eu.int/comm/taxation_customs/taxation/vat/traders/vat_community/index_en.htm#annexIIhttp://europa.eu.int/comm/taxation_customs/taxation/vat/traders/vat_community/index_en.htm#annexIIhttp://europa.eu.int/comm/taxation_customs/taxation/vat/traders/vat_community/index_en.htm#annexIIIhttp://europa.eu.int/comm/taxation_customs/taxation/vat/traders/vat_community/index_en.htm#annexIIIhttp://europa.eu.int/comm/taxation_customs/taxation/vat/traders/vat_community/index_en.htm#annexIIIhttp://europa.eu.int/comm/taxation_customs/taxation/vat/traders/vat_community/index_en.htm#annexIIIhttp://europa.eu.int/comm/taxation_customs/taxation/vat/traders/vat_community/index_en.htm#annexIIhttp://europa.eu.int/comm/taxation_customs/taxation/vat/traders/vat_community/index_en.htm#annexIIhttp://europa.eu.int/comm/taxation_customs/taxation/vat/traders/vat_community/index_en.htm#annexIIhttp://europa.eu.int/comm/taxation_customs/taxation/vat/traders/vat_community/index_en.htm#annexII

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