When Is It Mandatory to Register for VAT in Lithuania?

Updated: 13 September 2026. Based on current Lithuanian State Tax Inspectorate (VMI) guidance.

Many business owners associate mandatory VAT registration in Lithuania with the €45,000 turnover threshold. However, turnover is only one trigger. Buying services from foreign suppliers, purchasing goods from other EU countries or supplying certain services to EU businesses can create registration obligations much earlier.

Understanding which rule applies helps you price correctly and choose the appropriate VAT status. This guide focuses on Lithuanian businesses, with a separate explanation for foreign businesses trading in Lithuania.

The €45,000 VAT registration threshold

A Lithuanian business generally must register when consideration received or receivable for VAT-taxable supplies taking place in Lithuania exceeds €45,000 in the current or previous calendar year.

Since 1 May 2025, this test uses calendar years rather than the former rolling 12-month period. For 2026, review 2025 and monitor 2026 separately; do not simply add both years together. The threshold concerns relevant turnover, not profit. Unpaid customer invoices may also count because the rule includes consideration receivable. See VMI’s mandatory VAT registration guidance.

For example, €40,000 of qualifying turnover in each year does not become €80,000 for this test. However, cross-border transactions can still require registration independently.

Which sales count towards the threshold?

The customer’s location alone does not determine whether a sale counts. The VAT place-of-supply rules matter. A service supplied to a foreign customer may be treated as supplied outside Lithuania, while another transaction involving a foreign customer may remain taxable in Lithuania.

Avoid using total bank receipts as your VAT-threshold calculation. Ask your accountant to distinguish qualifying sales from other receipts and identify transactions requiring separate treatment. Our guide to VAT rates in Lithuania explains the different rates and categories; the registration threshold itself follows VMI’s registration rules.

Buying services from foreign suppliers

A small business can be forced to VAT registration even before reaching €45,000 when purchasing services subject to Lithuanian reverse-charge VAT. Examples can include online advertising, software subscriptions and consultancy purchased from foreign businesses.

Under the relevant general business-to-business rule, the Lithuanian customer calculates VAT instead of the supplier charging it. This registration trigger has no equivalent €45,000 minimum purchase threshold.

The conditions must still be checked. VMI specifically distinguishes foreign suppliers applying Lithuania’s small-business exemption with a valid Lithuanian “EX” identification from suppliers to which the ordinary reverse-charge rule applies. See VMI’s guidance on services purchased from abroad.

Before paying for your first foreign subscription or advertising campaign, establish who invoices you and how that service is treated.

Purchasing goods from other EU countries

A separate €14,000 threshold applies to qualifying goods acquired from other EU member states and brought into Lithuania. It concerns purchases from EU VAT payers, or suppliers required to be VAT payers, measured excluding VAT in the current or previous calendar year.

This is a purchasing threshold, not a sales threshold. Monitor it separately from domestic turnover, particularly when ordering stock or equipment. Special goods and transactions can require separate analysis. VMI also explains how businesses crossing this threshold may qualify for SVS in its small-business scheme guidance.

Providing services to businesses in other EU countries

Registration can also be mandatory when supplying services whose place of supply is another EU member state under the general B2B rule. Exceptions include services exempt from VAT or subject to a zero rate in that member state.

Consequently, a consultant or software business should review VAT registration before its first qualifying EU service transaction, even with low turnover. VMI lists this as a separate registration trigger. For broader business planning, read our guide to starting a consulting company in Lithuania.

Does registration always mean charging Lithuanian VAT?

No. An eligible small business required to register because of cross-border purchases or services may choose Lithuania’s small-business VAT scheme, known as SVS.

Subject to the scheme’s conditions, it can remain exempt from charging VAT on domestic supplies. However, SVS does not remove applicable VAT on foreign purchases, and it does not provide ordinary input VAT recovery. Eligibility depends on the domestic turnover conditions, including the previous year and expected current-year turnover. See VMI’s SVS explanation.

Choosing between ordinary VAT registration and SVS therefore affects both customer pricing and purchasing costs.

What if you control several companies?

Do not assume each company automatically receives an independent threshold. Where a person controls two or more legal entities, Lithuanian rules can require combined consideration of the relevant turnover or EU acquisitions. Exceptions depend on specific management and economic-independence conditions. Check the controlled-company rules in VMI’s guidance before assessing each entity separately.

Do foreign businesses receive the same threshold?

A foreign business making supplies whose place of supply is Lithuania may need registration without the €45,000 allowance. Exceptions exist, so registration is not automatic for every sale involving Lithuania.

For example, the analysis can depend on whether the customer accounts for VAT, a special scheme applies, or the transaction is exempt. VMI sets out the framework in its guidance for foreign taxable persons. Foreign ownership of a Lithuanian company should not be confused with a foreign company trading directly in Lithuania.

How to prepare for VAT registration

Review your domestic turnover, EU goods purchases and cross-border services together. Agree with your accountant which registration status fits, what evidence supports it and how invoices will be handled afterwards.

VMI instructs businesses to apply immediately when mandatory registration arises. Applications are submitted through Mano VMI; see its registration procedure.

BalticIncorp can assist with VAT registration in Lithuania and ongoing accounting services. Once registered, follow our guide to what happens after VAT registration to organise the next steps.

This article provides general information. VAT obligations depend on the precise transaction, place of supply and registration status; special schemes and exceptions require individual assessment.