Lithuania SME rules

SME Scheme – General features

Exemption

It is possible to opt for the SME scheme in Lithuania.

Transactions excluded from the SME scheme

The following transactions are excluded from the SME scheme: 

• Occasional transactions, like the supply before first occupation of a building or parts of a building or the supply of building land,
• Exempt cross-border supplies of new means of transport made from one Member State to another.

National annual threshold

The national annual threshold in Lithuania is 45 000 EUR. From 2025-01-01 it is planned that there will be 55 000 EUR.

Lithuania does not apply sectoral thresholds.
 

Domestic SME scheme

Simplified VAT obligations

A small enterprise established in Lithuania who applies the SME scheme in Lithuania only (domestic SME scheme)  must state the beginning of its activity. However, it doesn’t have neither to VAT register nor to submit periodical VAT returns. 

It will have to keep simplified accounts and will be able to issue simplified invoices.

Small enterprises applying the domestic SME scheme only must fulfil the following VAT obligations:

Submit VAT declaration and Statement of account in case small enterprise provides services to other member states under the article 44 of the VAT Directive or acquires such services or goods for more then 14 000 Eur from other member states. 

Cross-border SME scheme

The cross-border SME scheme applies in the following situation(s):

1. The small enterprise applies the SME scheme in other Member States than the Member State of establishment, or;
2. The small enterprise applies the SME scheme both in the Member State of establishment and in other Member State(s).

Simplified VAT obligations

The VAT registration in each Member State where the small enterprise applies the SME scheme is replaced by a single prior notification to be submitted in the Member State of establishment. 

The periodical VAT returns are replaced by a single quarterly report for all Member States to be submitted in the Member State of establishment. 

Currency

The values of supplies of goods and services to indicate in the prior notification, in the update to a prior notification and in the quarterly reports must be in EUR. 

Way of submission

The prior notification, the update to a prior notification and the quarterly reports should be submitted by electronic means on this page. (page under construction)

Additional simplified VAT obligations

A small exempt enterprise applying the cross-border SME scheme in Lithuania will have to keep simplified accounts and will be able to issue simplified invoices (B2B and B2C). However, it doesn’t have to submit administrative statements. 

Loss of simplified VAT obligations

Non-compliant small enterprises may be required: 

• to VAT register
• to submit periodical VAT returns

Transitional period

Lithuania does not apply any transitional period in case the national annual threshold is exceeded during the current calendar year.

Quarantine

Quarantine period in case of exclusion from the SME scheme

Small enterprises excluded from the SME scheme in Lithuania are not able to benefit from that exemption during the current year and the following calendar year. 

Quarantine period in case of voluntary departure from the SME scheme

No quarantine period imposed.

Appeals

Domestic SME scheme

Appeals should be addressed to your Member State of establishment (MSEST).

The national SME scheme is automatically applied to small enterprises whether turnover doesn't exceed the SME scheme threshold, without any administrative statements on the part of the enterprise.

Cross-border SME scheme

Member State of establishment (MSEST)

Appeals related to the following topics should be addressed to MSEST:

• Union annual turnover
• Prior notification, correction and update to a prior notification
• Quarterly reports and correction of a quarterly report
• Exclusion for exceeding the Union annual turnover

Member State of exemption (MSEXE)

Appeals related to the following topics should be addressed to MSEXE:

• National annual turnover
• Denial to access the cross-border SME scheme in MSEXE
• Loss of simplified VAT obligations in respect of MSEXE
• Exclusion for exceeding the national annual threshold/sectoral threshold in MSEXE

Calendar

Bank holidays in 2025

1 January

16 February

11 March

20-21 April

1 May

24 June

6 July

15 August

1-2 November

24-26 December

VAT simplified procedures

VAT simplified procedures are not applied.