The 2012 worldwide VAT, GST and sales tax guide

404 L ITHUANIA
Group registration. VAT group registration is not allowed under
the Lithuanian VAT law. Entities that are legally related must
register for VAT individually.
Nonestablished businesses and tax representatives. A “nonestablished
business” is a business that does not have a fixed establishment
in Lithuania. A nonestablished business must register for
VAT in Lithuania if it makes taxable supplies of goods or services
there. No VAT registration threshold applies to supplies
made by foreign nonestablished businesses; that is, registration is
required in the event a taxable supply is made in Lithuania, unless
the reverse charge applies or unless the supply is outside the scope
of VAT or is exempt. A nonestablished business must register for
VAT through a fixed establishment in Lithuania or appoint a fiscal
representative (tax representative). The requirement to appoint a
fiscal representative does not apply to nonestablished businesses
that are established in other EU member states.
An EU taxable person must register for VAT if it makes distance
sales of goods to customers in Lithuania in excess of LTL
125,000 (€36,203) in a year.
Foreign entities are not required to register for VAT if their transactions
are exempt, outside the scope of VAT or zero-rated (taxable
at 0%). However, for certain supplies, VAT registration is
required even though the zero rate of VAT applies. These supplies
include the following:
• Exports of goods
• Supplies of goods that are intended to be produced to customs
and placed in temporary storage
• Supplies of goods that are intended to be placed in a free zone
or in a free warehouse
• Supplies of goods that are intended to be placed under customs
warehousing arrangements or inward processing arrangements
• Services linked to the above supplies
• Supplies of goods to another EU member state that are transported
to that country
• Supplies of new vehicles that are transported to another EU
member state
Taxable persons established outside the EU that supply electronic
services and taxable persons that supply electronic services
through a subsidiary established outside the EU to nontaxable
persons established in Lithuania must register for VAT (that is, if
the service provider is not yet registered in another EU member
state).
Reverse charge. A nonestablished business that makes taxable
supplies in Lithuania is not required to register for VAT if the
reverse-charge rule applies to all its transactions. Under the reversecharge
rule, effective from 1 January 2010, the Lithuanian customer
that is a taxable person established in Lithuania is
responsible for the calculation and payment of VAT, unless either
of the following circumstances exists:
• The supply is used by a fixed establishment of the person outside
Lithuania.
• The supply falls under the list of exceptions.
Under the reverse-charge rule, effective from 1 January 2010, a
customer that is a VAT-registered person in Lithuania is respon-