VAT in Lithuania: Rates, Registration and Compliance Guide 2026

The Value Added Tax (VAT) is a fundamental component of Lithuania’s tax system, as it is in most European Union countries. In Lithuania, this tax is referred to as Pridėtinės vertės mokestis (PVM). VAT is imposed on goods and services at each stage of production and distribution, ultimately borne by the final consumer. Lithuania’s VAT system is comprehensive, encompassing various rates and regulations aimed at ensuring stable state budget revenues while supporting specific sectors of the economy.

VAT Rates in Lithuania

The standard VAT rate in Lithuania is 21%, applicable to most goods and services. This is the default rate unless other preferential conditions apply. Lithuania has introduced reduced rates to support certain key sectors of the economy and to meet basic social needs.

Significant changes to Lithuania’s reduced VAT rates took effect on 1 January 2026, following legislation passed by the Lithuanian Parliament (Seimas) in June 2025 and signed into law in July 2025. The 9% reduced rate has been abolished and replaced with a new 12% rate for most categories, while certain essential goods moved to the existing 5% rate.

12% Rate (New from 1 January 2026)

A new 12% reduced VAT rate replaces the former 9% rate for the following goods and services:

• Passenger transport services and passenger luggage transport
• Hotel accommodation and accommodation services related to tourism
• Restaurant and catering services (food served in restaurants and takeaway)
• Admission tickets to cultural and artistic institutions and events
• Tickets to sporting events

5% Rate

The 5% VAT rate covers:

• Pharmaceutical products
• Medical equipment for disabled persons
• Food intended for medical use
• Technical aids for disabled persons
• Newspapers and periodicals
• Printed and electronic books and informational publications (moved from 9% to 5% from 1 January 2026)

21% Standard Rate — Items Reclassified from 1 January 2026

Thermal energy, hot water supplies, and firewood, which had previously benefited from the temporary 9% reduced rate, now revert to the standard 21% VAT rate from 2026.

0% Rate

The 0% VAT rate applies to:

• Intra-community and international transportation

VAT Registration in Lithuania

When Is It Required?

VAT registration is mandatory for businesses meeting specific conditions. Entities must register for VAT in Lithuania when:

• Importing goods from non-EU countries
• Exporting goods from Lithuania to non-EU countries
• Making sales within Lithuania, including both domestic sales and intra-community supplies
• Making intra-community acquisitions of goods (bringing goods into Lithuania from other EU countries)
• Storing goods in Lithuania

Registration Threshold

The VAT registration threshold for foreign enterprises engaged in distance sales is €10,000 (EU-wide threshold). Once this threshold is exceeded, the business must account for VAT locally in the recipient country or use the VAT OSS (One Stop Shop) system.

Registration Process

The VAT registration process in Lithuania typically takes 1 to 2 months. The process begins with obtaining and submitting documents with an Apostille. The company must register in the taxpayer registry by submitting:

• Form FR0227 — for foreign VAT taxpayers
• Form REG812 — for foreign individuals

Submissions can be made online through the Mano VMI service or by post.

VAT Filing Requirements

Filing Frequency

In Lithuania, most businesses are required to file VAT returns monthly. However:

• Smaller companies with annual turnover not exceeding €300,000 may opt for quarterly returns
• The smallest firms with annual turnover below €60,000 may file semi-annual returns

All VAT returns must be submitted electronically by the 25th day of the month following the end of the reporting period. For example, the return for January must be filed by 25 February.

Penalties for Late Filing

Failure to submit VAT returns on time results in the following penalties:

• A fine ranging from €200 to €390 for failure to submit a return
• Daily interest at a rate of 0.03% on any unpaid tax

Tax Representative

Non-EU companies must appoint a tax representative in Lithuania who is responsible for compliance with VAT regulations. This representative is jointly liable for the company’s tax obligations.

Invoicing Rules

When issuing a VAT invoice in Lithuania, the VAT amount must be expressed in euros. If the invoice is issued in another currency, the VAT amount must be converted to euros using the exchange rate set by the European Central Bank on the date the invoice is issued. If the ECB has not published a rate for the relevant currency, the exchange rates of the Bank of Lithuania should be used.

Invoices must be issued in Lithuanian or bilingually, with Lithuanian being one of the languages used. Failure to comply may result in the tax authority requesting a translation of the document.

Intrastat in Lithuania

Businesses operating in Lithuania must comply with Intrastat reporting requirements for the movement of goods to and from other EU member states.

Intrastat Thresholds for 2026

Lithuania has updated its Intrastat thresholds for 2026. The threshold for arrivals (imports from other EU countries) has been raised to €600,000, while the threshold for dispatches (exports to other EU countries) remains unchanged at €400,000.

Businesses that exceed these thresholds — either based on the previous year’s trade or cumulatively during the current year — are required to submit monthly Intrastat declarations from the month in which the threshold is crossed.

Filing Deadline

Intrastat declarations must be submitted by the 10th day of the month following the reporting period.

Summary

Lithuania’s VAT system has undergone significant changes in 2026, most notably the replacement of the 9% reduced rate with a new 12% rate for accommodation, passenger transport, catering, and cultural events, and the reclassification of books and medicines to the 5% rate. Thermal energy and firewood have returned to the standard 21% rate. The Intrastat arrivals threshold has also been raised to €600,000. Keeping up with these changes is essential for conducting compliant business in Lithuania. Given the ongoing evolution of VAT legislation, consulting with VAT experts regularly is strongly advisable to maintain compliance and avoid penalties: Contact us – amavat®.