Changes to VAT Regulations in Lithuania from May 1, 2025 – Important Information for Small Businesses

As of May 1, 2025, new Value Added Tax (VAT) regulations will come into force in Lithuania. These changes result from aligning Lithuanian law with European Union regulations and aim to standardize the taxation rules for small businesses across member states.

Legal Basis for the Changes

The changes were adopted through the Law No. XV-155 of April 10, 2024, which amends several articles of the VAT law and supplements it with new provisions. The new regulations cover VAT registration, the submission of VAT declarations, and reporting obligations for cross-border transactions.

Key Legal Acts Coming into Effect:

  1. Order No. VA-45 (VAT Registration)
    The new provisions regarding:

    • VAT registration and deregistration,

    • Obligation to register when providing and receiving services from abroad,

    • Rules for applying the small VAT scheme when certain conditions are met.

  2. Order No. VA-43 (VAT Declaration PVM101)
    A new form for the PVM101 VAT declaration for small entrepreneurs:

    • Mandatory submission only during the period when VAT liability arises,

    • Deadline for submission: by the 25th day of the month following the reporting period.

  3. Order No. VA-40 (Reporting Services in the EU)
    A requirement to submit form FR0564 for taxpayers who provided services in other EU countries – excluding those that are exempt from VAT or subject to a 0% rate.

  4. Order No. VA-38 (VAT Invoice Registers)
    Taxpayers applying the small VAT scheme will not need to send invoice data to the i.SAF system.

    • A requirement to include electronic receipts as VAT invoices in the i.SAF system.

What Does This Mean for Entrepreneurs?

As of May 1, 2025:

  • VAT registration obligations may arise when purchasing services from abroad (including non-EU countries),

  • Services provided outside Lithuania may trigger the obligation to submit a declaration and charge VAT in another EU country,

  • Small businesses meeting certain criteria can still benefit from VAT exemption in Lithuania.

Do You Have Questions?

If your business operates under the small business scheme or engages in cross-border transactions, consult with a tax advisor to determine which new obligations will apply to you starting in 2025.

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