At Lawhill, we provide expert assistance with VAT (Value Added Tax) registration in Lithuania, ensuring your business complies with all regulatory requirements. Whether you are establishing a local business or expanding your operations into the EU, our team simplifies the VAT registration process and ensures compliance with Lithuanian tax laws.
What is VAT And Who Needs to Register?
VAT is a consumption tax applied to goods and services at each stage of production and distribution. In Lithuania, the standard VAT rate is 21%, with reduced rates of 9% and 5% for specific goods and services, such as books and public transport.
You need to register for VAT in Lithuania if:
- Your company’s annual taxable turnover exceeds €45,000.
- You provide goods or services subject to VAT within Lithuania or to other EU member states.
- You engage in intra-community acquisitions of goods exceeding €14,000 annually.
- You wish to reclaim VAT on expenses incurred in Lithuania.
You operate an e-commerce business under the EU One-Stop Shop (OSS) scheme.
Key Requirements
Legal entity has to have an active bank account.
Company has to have a person responsible for accounting and monthly VAT declarations.
Every UAB must have a registered office in Lithuania. We can provide a registered address to meet this obligation.
Our Services
At Lawhill, we streamline the VAT registration process for your business by offering:
- Consultation: Personalized advice on VAT requirements tailored to your business activities.
- Documentation: Preparation and submission of all necessary documents to the State Tax Inspectorate.
- Representation: Acting on your behalf in all communications with Lithuanian tax authorities.
- Compliance Checks: Ensuring that your business meets all VAT obligations, avoiding fines and complications.
ADDITIONAL SERVICES
At Lawhill, we provide comprehensive accounting and payroll services tailored to meet the needs of your business. From bookkeeping to tax filings, we ensure your financial records are compliant with Lithuanian regulations. Our team handles payroll management, ensuring timely and accurate payment for your employees.
Navigating the banking system in a foreign country can be challenging. We assist you in opening local and international bank accounts, guiding you through compliance requirements and documentation. Whether for operational needs or capital deposits, we streamline the process to secure your accounts efficiently.
Establish a professional presence in Lithuania with our virtual office services. We provide a legal address required for company registration and offer correspondence management to ensure you never miss important communication. This service is ideal for businesses operating remotely or without a physical office in Lithuania.
Certain industries in Lithuania require specific licenses to operate legally. At Lawhill, we help you obtain necessary licenses such as transport, pharmaceutical, Virtual Asset Service Provider (VASP), and temporary employment licenses. Our experts ensure the application process is smooth, saving you time and effort while adhering to all legal requirements.
We offer a full range of legal services tailored to businesses, including contract drafting, regulatory compliance, dispute resolution, mergers, and acquisitions. Our experienced legal team ensures that your business is fully protected and operates within the framework of Lithuanian and EU laws.
F.A.Q
Getting a VAT number in Lithuania typically takes 1 to 2 weeks after receiving all necessary documents from the client.
- Corporate Income Tax: 6% for companies with an annual turnover of up to €300,000; 16% for companies with an annual turnover exceeding €300,000.
- Dividend Tax: A flat rate of 15% applies to distributed dividends.
- Value Added Tax (VAT): Standard VAT rate in Lithuania is 21%.
- Member of NATO and the EU: Lithuania has been a stable and secure member of NATO and the European Union since 2004, offering businesses access to one of the largest markets globally.
- Competitive Tax Environment: Lithuania boasts one of the lowest corporate tax rates in the EU, including special tax incentives for small businesses and startups.
- Strong Economic Growth: Ranked 1st in the EU for real GDP per capita growth from 2000 to 2020, Lithuania is an emerging leader in economic development.
- Fast and Simple Business Setup: Lithuania offers a straightforward process for company registration, making it easy for businesses to get started quickly.
- Multilingual and Skilled Workforce: The vast majority of young professionals in Lithuania are proficient in English, with many also fluent in other major European languages, ensuring smooth business communication.
- Strategic Geographic Location: Positioned at the crossroads of Europe, Lithuania provides excellent logistics and connectivity, making it a strategic hub for businesses targeting the European and global markets.
- Modern Digital Infrastructure: As a leader in digital innovation, Lithuania offers a robust infrastructure, ideal for startups, fintech companies, and tech-driven businesses.
- Business-Friendly Policies: Lithuania fosters a startup-friendly ecosystem with government incentives and grants for innovative businesses, including tech and green energy industries.