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Lithuania raising VAT registration threshold to €55,000 2025

Baltic state to increase threshold from €45,000 to €55,000 – fifth highest in the EU

Lithuania has drawn up legislation to increase the annual sales threshold for VAT registration. From the 1 January 2025 it will increase from €45,000 to €55,000. This would make it the fourth highest threshold in the European Union following Italy VAT registration threshold rise at the start of this year to €85,000. The measure is now with Parliament.

The aim will be to lift many small businesses out of the compliance burden of VAT, and also enable B2C services a tax break since they will not have to charge VAT on their prices. The sharp rise of the threshold is also partially due to record-breaking inflation rates of over 20% following the Russian invasion of Ukraine.

The EU VAT Directive sets the limits on VAT registration thresholds. However, member states may apply for a derogation – these are generally provided by the European Commission with the proviso of a time-limit and need for economic evaluation if a further waiver is required.

Lithuanian VAT administration

Lithuania’s VAT (Value Added Tax) administration is overseen by the State Tax Inspectorate (STI) under the Ministry of Finance. VAT is a consumption tax applied to goods and services at various stages of production and distribution. The standard VAT rate in Lithuania is 21%, with reduced rates of 9% for specific services like heating and accommodation, and 5% for certain medical and educational supplies.

Businesses operating in Lithuania must register for VAT if their annual turnover exceeds €45,000. Once registered, they must charge VAT on taxable goods and services, issue proper invoices, and periodically file VAT returns with the STI. Returns are typically filed monthly, though some businesses may qualify for quarterly submissions depending on their turnover.

The STI conducts regular audits and inspections to ensure compliance with VAT regulations, and non-compliance can result in penalties and interest on overdue taxes. Lithuania is also integrated into the EU VAT system, meaning cross-border transactions within the EU are subject to specific VAT rules, including the reverse charge mechanism for certain goods and services, where the VAT liability shifts from the seller to the buyer. This integration helps streamline VAT collection across EU member states.

2025 EU VAT registration & Intrastat reporting threshold

Country VAT Registration thresholds Intrastat thresholds
Resident Non-resident Arrivals Dispatches Arrivals Statistical Dispatches Statistical
EU One-Stop Shop €10,000 €10,000 EU sellers only - - - -
Austria €42,000 Nil €1,100,000 €1,100,000 €12m €12m
Belgium €25,000 Nil €1,500,000 €1,000,000 €25m €25m
Bulgaria BGN 100,000 Nil BGN 1.7m BGN 2.2m €17m €36.1m
Croatia €60,000 Nil €450,000 €300,000 €450,000 €300,000
Cyprus €15,600 Nil €320,000 €75,000 €2.7m €5.8m
Czechia CZK 2m Nil CZK 15m CZK 15m CZK 30m CZK 30m
Denmark DKK 50,000 Nil DKK 22m DKK 11m DKK 22m DKK 11m
Estonia €40,000 Nil €700,000 €350,000 €700,000 €350,000
Finland €20,000 Nil €800,000 €800,000 €800,000 €800,000
France Goods €85,000 Services €37,500 Nil Discretionary Discretionary Discretionary Discretionary
Germany €22,000 Nil €800,000 €500,000 €49m €51m
Greece Nil Nil €150,000 €90,000 €150,000 €90,000
Hungary  HUF 12m Nil HUF 270m HUF 150m HUF 5.5bn HUF 15bn
Ireland Goods €85,000 Services €42,500 Nil €500,000 €635,000 €5m €34m
Italy €85,000 Nil See country guide See country guide See country guide See country guide
Latvia €50,000 Nil €350,000 €200,000 €5m €7m
Lithuania €55,000 Nil €570,000 €400,000 €7m €10m
Luxembourg €50,000 Nil €250,000 €200,000 €4m €8m
Malta Goods €35,000 Other €30,000 Nil €700 €700 €700 €700
Netherlands €20,000 Nil Discretionary Discretionary Discretionary Discretionary
Poland PLN 200,000 Nil PLN 6.0m PLN 2.8m PLN 105m PLN 158m
Portugal Nil Nil €600,000 €600,000 €6.5m €6.5m
Romania RON 300,000 Nil RON 1m RON 1m RON 10m RON 20m
Slovakia €62,500 Nil €1m €1m €1m €1m
Slovenia €60,000 Nil €220,000 €270,000 €4m €9m
Spain Nil Nil €400,000 €400,000 €400,000 €400,000
Sweden SEK 120,000 Nil SEK 15m SEK 4.5m SEK 15m SEK 4.5m
Non-EU
Bosnia BAM 100,000 Nil n/a n/a n/a n/a
Iceland ISK 2m Nil n/a n/a n/a n/a
Montenegro €35,000 Nil n/a n/a n/a n/a
Norway NOK 50,000 Nil n/a n/a n/a n/a
Russia RUB 8m (on application) Nil n/a n/a n/a n/a
Switzerland CHF 100,000 CHF 100,000 global income n/a n/a n/a n/a
Turkey Nil Nil n/a n/a n/a n/a
UK (Intrastat Northern Ire only) £90,000 (Apr 2024) Nil £500,000 £250,000 £24m £24m

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