On Apr. 10, 2025, LTH MoF stated that LTH PRL approved a draft law prepared by LTH MoF, which transposes new provisions of European Union (EU) legal acts adopted in the field of value added tax (VAT) and that are all relevant to Lithuanian small businesses.
This means small businesses from other EU member States need not register for VAT in Lithuania, if a €45,000 VAT threshold is not met, and EU turnover is not €100,000.
Accordingly, Lithuanian small businesses will also have the option of not registering as VAT payers in another EU member States, provided that they do not exceed threshold for VAT registration and annual turnover in the EU established in the EU member State.
Deputy Minister of Finance, Kristupas Vaitiekunas, commented the amendments, which comply with EU directive, will reduce the administrative burden on small businesses at cross-border level and help create a tax environment more conducive to their growth.
On Apr. 4, LTH PRL issued draft law to amend value added tax law.
Also amending arts. 92, 95, 97, 98, 106, 117, 118 and annex 2 of the law no. IX-751 on value added tax and supplementing the law with articles 71-2, 74-1 and 88-3.
In line with provisions of Dir 2020/285 amending Dir 2006/112/EC on the common system of value added tax, and Reg 904/2010 on administrative cooperation.
Reg 904/2010 sets out cooperation and exchange of information for the purposes of monitoring the proper application of the specific scheme for small enterprises.
Also, in line with the latest amendments of Dir 2022/542 with regard to rates of VAT.
Draft law covers provisions on activities for which VAT on the purchase and/or import of goods and/or services intended for use may be deducted.
Also, provisions amended regarding the report of a person registering for the purposes of small business schemes in other EU Member States, amongst other things.
Effectiveness
This Law, with the exception of para. 2 of this article, shall be in force May 1, 2025.
Effective dates with regard to shipping are also set out in the draft law.
Apr. 10, 2025 Bill Approved
On Apr. 10, 2025, LTH MoF stated that LTH PRL approved a draft law prepared by LTH MoF, which transposes new provisions of European Union (EU) legal acts adopted in the field of value added tax (VAT) and that are all relevant to Lithuanian small businesses.
This means small businesses from other EU member States need not register for VAT in Lithuania, if a €45,000 VAT threshold is not met, and EU turnover is not €100,000.
Accordingly, Lithuanian small businesses will also have the option of not registering as VAT payers in another EU member States, provided that they do not exceed threshold for VAT registration and annual turnover in the EU established in the EU member State.
Deputy Minister of Finance, Kristupas Vaitiekunas, commented the amendments, which comply with EU directive, will reduce the administrative burden on small businesses at cross-border level and help create a tax environment more conducive to their growth.
Regulators
LTH MoF; LTH PRL; LTH Tax
Entity Types
Corp
Reference
Bill Prop XVP-120(2), 4/4/2025; Dir 2006/112/EC; Dir 2020/285; Dir 2022/542; Reg 904/2010;
