Buying Google Ads, Meta Ads and Foreign Software: VAT Obligations for Lithuanian Companies

Buying advertising from Google or Meta, or paying for software such as Shopify, Canva, HubSpot or a SaaS subscription, may create Lithuanian VAT obligations even when your company is not yet a standard VAT payer.

The reason is simple: these are usually services supplied by a business established outside Lithuania. Google and Meta invoices, for example, are commonly issued by their Irish entities. Under the reverse-charge rule, the VAT is accounted for in Lithuania by the Lithuanian business customer—not by the foreign supplier.

When does the obligation arise?

A Lithuanian MB, UAB or individual business must address VAT registration before purchasing services from a foreign business if the place of supply is Lithuania. There is no minimum spending threshold for this particular obligation.

This means that even a small monthly Google Ads budget or a €20 software subscription can trigger a requirement to register. It is separate from the familiar €45,000 domestic turnover threshold, which is explained in our guide on when VAT registration becomes mandatory in Lithuania.

SVS registration for companies not registered for VAT

If your Lithuanian company does not have a VAT number and remains below the domestic turnover threshold, it will generally need to register under the Small Business Scheme (SVS) before buying these foreign services.

SVS registration allows the company to remain exempt from charging VAT on its own qualifying Lithuanian sales. However, it must still calculate and pay Lithuanian VAT on services purchased from abroad, including Google Ads, Meta Ads and many software subscriptions.

For example, if an MB spends €1,000 on Meta Ads and receives an invoice without Irish VAT, it must calculate €210 Lithuanian VAT at the standard 21% rate and declare and pay it to the State Tax Inspectorate (VMI).

A company registered only under SVS normally cannot deduct this VAT as input VAT. If your business has significant advertising, software or other business costs, full VAT registration may be more beneficial because it can allow input VAT deduction, subject to the usual rules.

What should you do in practice?

Before adding a company card to Google Ads, Meta Business Manager or a foreign software platform:

• Register for the appropriate VAT status with VMI—SVS or standard VAT registration.

• Provide the platform with your Lithuanian VAT number once issued.

• Keep all invoices and ensure they are issued to the company’s correct legal name and address.

• Declare and pay the reverse-charge VAT by the applicable deadline.

Do not assume that an invoice showing no VAT means there is no tax to pay. In many cases, it means the VAT obligation has shifted to your Lithuanian company.

You can find an overview of the applicable percentages in our article on VAT rates in Lithuania, while our guide to VAT returns and i.SAF reporting explains the wider reporting picture. For official guidance and registration information, see the Lithuanian State Tax Inspectorate (VMI) and the European Commission’s VAT information portal.

If you are unsure whether SVS or full VAT registration is the right route for your business, our VAT registration servicecan help you assess the position before you begin purchasing foreign services.