Invoicing and Tax regulation in Lithuania

Invoicing Regulation

In Lithuania, invoices must be issued for all transaction types, including B2B, B2C, and B2G. They must comply with the Lithuanian VAT Act and the guidelines provided by the European Union. The basic requirement is to include date, sequential number, supplier, customer, description, quantity of goods or services, unit price, and all applicable VAT rates.

Real-time Reporting / Fiscalization

Real-time reporting or fiscalization is not mandatory in Lithuania. However, electronic cash registers used by businesses must be technically compatible with the technical ability to record and store fiscal data in real-time, as per the requirements set by the Lithuanian Tax Authority. Fiscal devices should be able to record and store each transaction up to 7 years.

E-invoicing

E-invoicing is not a requirement in Lithuania, but it is highly encouraged and widely used in practice. E-invoicing can be used in B2B, B2C, and B2G transactions. While it is not mandatory, it facilitates easier and faster processing of invoices, making it highly beneficial for businesses.

VAT/GST/Tax Compliance

For Lithuania, VAT/GST/Tax Compliance is compulsory for all businesses, as per the Lithuanian Tax Law. The standard VAT rate is 21%, with reduced VAT rates of 9% and 5% for certain goods and services. All businesses must be registered for VAT if their taxable turnover exceeds €45,000 in a calendar year. Any established businesses in Lithuania must register for VAT, regardless of turnover. VAT returns should be submitted monthly by the 25th day of the following month.

Looking to automate real-time reporting and tax compliance for Lithuania? Let's talk