When legal entities are required to register as taxpayers for VAT purposes

Registracijos numeris KM0775

Legal entities are required to register as taxpayers for VAT purposes when:

• remuneration of the legal entity from its economic activities (supply of goods/services) subject to VAT and carried out in the territory of Lithuania exceeds EUR 45,000 per year (during the last 12 months);
• the legal entity purchases goods in Lithuania from another Member State of the EU for more than EUR 14,000 per  calendar year;

• the legal entity is controlled by a person supervising several legal entities whose total revenue from the supply of goods/services in Lithuania exceeds EUR 45,000 per year  (during the last 12 months), or which altogether purchase more than EUR 14,000 worth of goods in Lithuania from another Member State of the EU per calendar year. The obligation to collectively calculate the total revenue from supply of goods/services and/or to collectively calculate the total value of purchased goods from other Member States of the EU is not applicable, if these persons can prove that:

1. none of the management bodies and/or individual members of the management bodies of these controlled companies is the same person and
2. their actual economic activities are not of the same nature and they do not act for each other’s benefit or interest.

Legal entities intending to carry out economic activities subject to VAT, or legal entities already engaged in economic activities subject to VAT, but not exceeding the above thresholds, may voluntarily register as taxpayers for VAT purposes. For more detailed information, please see here (only in Lithuanian).