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
