VAT obligations in property letting for persons not registered as taxpayers for VAT purposes

If persons not registered as taxpayers for VAT purposes provide VAT-exempt property letting services, then the rental income received is not included in the EUR 45,000 threshold for VAT registration, and no VAT obligations arise.

However, for persons letting residential premises with a rental period of less than 2 months, or letting vehicle parking space, storage units, garages or other immovable property of a similar nature, or letting any plant of equipment, or letting accommodation, rental income is included in the EUR 45,000 threshold for VAT registration, and if this amount is exceeded, the obligation to register as a taxpayer for VAT purposes, charge and pay VAT, arises.

For more detailed information, please see here (only in Lithuanian).