- Investment in Tax Technology: Lithuania has consistently invested in IT resources to enhance tax reporting services, with the government supporting high levels of investment in technology to improve the overall business environment.
- Digitalization Initiatives: The Ministry of Finance and the State Tax Inspectorate (VMI) have implemented various digitalization projects over the last decade, including real-time auditing of transactional data and mandatory B2G e-invoicing.
- Smart Tax Administration System (i.MAS): The introduction of the Smart Tax Administration System includes three key digital subsystems (i.VAZ, i.SAF, and SAF-T) designed to increase transparency and improve tax compliance through electronic reporting of invoices and standardized audit files.
- Real-Time VAT Assessment: A pilot version of a real-time VAT assessment tool was introduced to enhance tax control, allowing for cross-checking of VAT data submitted by taxpayers and enabling timely corrections to avoid penalties.
- Ongoing Modernization Efforts: The Ministry of Finance and VMI continue to promote the modernization of VAT compliance infrastructure, focusing on making tax compliance less burdensome and more transparent, with potential future developments anticipated to further reduce the VAT gap.
Source Innovate Tax
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