VAT taxation procedure updated: changes relevant to small businesses
Today, the Seimas approved the draft law prepared by the Ministry of Finance, which transposes the provisions of the new European Union (EU) legal acts adopted in the field of value added tax (VAT), relevant to Lithuanian small businesses.
“These amendments, which comply with the EU directive, aim to reduce the administrative burden on small businesses at the cross-border level and help create a tax environment more favourable to their growth, as well as to increase the competitiveness of small businesses in Lithuania and other EU Member States in the single market,” Vice-Minister of Finance K. Vaitiekūnas says.
The draft law creates opportunities for small businesses from other EU Member States not to register as VAT payers in Lithuania, if the business does not exceed the VAT registration threshold set in Lithuania, which is EUR 45 thousand, and the annual turnover in the EU of EUR 100 thousand.
Accordingly, Lithuanian small businesses will also have the option of not registering as VAT payers in another EU Member State, provided that they do not exceed the threshold set for VAT registration in that EU Member Stateand the annual turnover in the EU (EUR 100 thousand).
Last updated: 16-04-2025
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