Skip to main content

Value Added Tax

The supply of goods and services for consideration in the territory of the country by a taxable person in the performance of his/its economic activities shall be subject to VAT.

In addition, the acquisition of goods in the territory of the country for consideration from another Member State shall also be subject to VAT.

Moreover, the import of goods shall be subject to import VAT when the goods are deemed to be imported in the territory of the country.

Standard rate of VAT

Standard rate of VAT shall be 21%.

A reduced 12% VAT rate shall apply to:

  • services of passenger transport by regular routes as well services of transportation of such passengers’ luggage;
  • accommodation services;
  • visits to all kinds of artistic and cultural institutions, artistic and cultural events, in the absence of exemption from VAT.

A reduced 5 % VAT rate shall apply to:

  • technical aids for disabled persons and to repairs of such aids;
  •  medicines and medical aids to persons who have the right to the full or partial compensation of the costs of acquisition thereof in accordance with the procedure prescribed by the Republic of Lithuania Law on Health Insurance, as well as to prescription medicines where the costs of acquisition are not compensated;
  • printed and electronic newspapers, magazines and other periodicals;
  •  printed books and e-books also printed and electronic non-periodic information publications.

Payers of VAT

Taxable persons who supply goods or services in Lithuania are required to register as VAT payers, to calculate and pay VAT to the State budget.

VAT registration must also be obtained for the acquisition of goods from another EU Member State (when the total amount during a calendar year exceeds EUR 14,000), the acquisition of services from another EU Member States, as well as for the supply of services in other Member States.

Small businesses do not have to calculate nor pay VAT on the goods and/or services supplied, if the total amount received from the goods and/or services did not exceed EUR 45,000 in the previous calendar year and this amount is not expected to be exceeded in the current calendar year.

An opportunity for voluntary registration as a VAT payer is also provided in cases where the aforementioned threshold is not exceeded.

Tax period

A tax period shall be a calendar month, and that of a natural person VAT payer - a calendar half-year. However, in some cases it may be also a calendar quarter or another period. If a calendar month has been set as a tax period, the VAT return for the tax period shall be filed and the VAT amount payable shall be paid not later than by the 25th day of the subsequent month.

Other information

The Republic of Lithuania Law on VAT also establishes the cases, where the supply of goods or services and acquisition of goods from another EU Member State are not subject to VAT as well as the cases, where imported goods are not subject to import VAT, the procedure for the application of special VAT taxation schemes (compensatory VAT rate for farmers, tourism services, second-hand goods, works of art, collectors’ articles and antiques, investment gold and cross-border e-commerce) and etc.

Regulation in the European Union

The European Union applies stringent regulation of VAT taxation, as VAT, being a consumption tax, has a substantial impact on the development of the internal market without borders. Council Directive of 28 November 2006 No. 2006/112/EC on the common system of value added tax is the main document governing VAT taxation on the EU scale. The scope of the directive covers practically all aspects of VAT application.

However, there are a number of directives for specific VAT areas such as:

  1. cases of, and procedures for the application of reliefs from import VAT - Council Directive of 5 October 2006 No. 2006/79/EC on the exemption from taxes of imports of small consignments of goods of a non-commercial character from third countries and Council Directive 2009/132/EC of 19 October 2009 determining the scope of Article 143(b) and (c) of Directive 2006/112/EC as regards exemption from value added tax on the final importation of certain goods;
  2. refunding of VAT to taxable persons - Council Directive 2008/9/EC of 12 February 2008 laying down detailed rules for the refund of value added tax, provided for in Directive 2006/112/EC, to taxable persons not established in the Member State of refund but established in another Member State and Council Directive 2010/66/EU of 14 October 2010 amending Directive 2008/9/EC, also Thirteenth Council Directive of 17 November 1986 No.86/560/EEC on the harmonization of the laws of the Member States relating to turnover taxes - Arrangements for the refund of value added tax to taxable persons not established in Community territory.

Clarification of Provisions of the Law on VAT

Summarised clarifications of the Law on Value Added Tax are provided and published by the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania.

Taxpayers wishing to obtain consulting on VAT payment or information about the application of the Law on Value Added Tax and relevant bylaws should approach the State Tax Inspectorate as provided for in the Law on Tax Administration.

Links:

Last updated: 06-01-2026