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Proposed VAT law changes

Proposed amendments made to the Lithuanian Value Added Tax Law (Republic of Lithuania Law on value added tax No. IX-751). Here’s a breakdown of the key changes:

VAT Registration:

  • Thresholds for mandatory VAT registration increased:
    • Standard VAT registration: Threshold is now €55,000 per year
    • VAT registration for acquiring goods/services from other EU countries: Threshold is now €14,000 per year (previously unspecified).
  • Small Business Scheme (SBS):
    • Lithuanian businesses can apply the SBS even if they have an establishment in another EU country, provided they meet specific thresholds.
    • Foreign businesses established in another EU country can apply the Lithuanian SBS under certain conditions.
    • A new VAT identification number with “EX” at the end is assigned to businesses registered for the SBS in other Member States.
  • Optional VAT Registration: Businesses can still register for VAT voluntarily even if they are below the thresholds.

Other:

  • Clarifications on the definition of “substantial improvement” of a building.
  • Clarifications on the place of supply of cultural, artistic, sporting, etc. services.
  • Definition of activities for which input VAT on purchased goods/services can be deducted.
  • Changes to invoice requirements for VAT deduction purposes.

The proposal is to implement these changes per Jan 1, 2025.

Source e-seimas.lrs.lt

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