Accounting, Payroll, Tax & Legal since 1989

Taxation in Lithuania

Leinonen Lithuania offers full tax consulting assistance: advisory on value added tax, payroll taxes, corporate income tax and other related matters.

Our Tax team has extensive professional experience in tax advisory business.

Leinonen Lithuania will make sure that the taxation is performed according to the tax regulation requirement. We offer a broad shoulder to lean on in the overly complicated tax jungle.

Our main areas of specialization are:

Registration for VAT purposes

Leinonen can assist with VAT registration in Lithuania. We have experience and practical knowledge of registering companies operating in various sectors. A company is required to register for VAT purposes if:

  1. distance selling transaction exceeded/plan to exceed threshold indicated in legislation (LT - EUR 35.000);
  • performs transaction related to real estate located in Lithuania;
  • performs other transactions which may require VAT registration, i.e. transfer of own goods, intra - acquisition or supply of goods, etc.

VAT and Intrastat compliance procedure

Leinonen Lithuania ensures VAT and Intrastat reporting compliance. Furthermore, our team makes sure that the data provided by our clients is submitted to relevant authorities in a correct and timely matter. Afterwards, we provide copies of submitted documents in accordance with payment details if needed. Leinonen Lithuania assists companies to minimize time costs while dealing with VAT and Intrastat compliance procedures.

Tax review procedure 

Leinonen Lithuania's team offers tax review to companies seeking to find out if their activities comply with the legislation. Tax reviews can be focused on single (e.g. VAT, Corporate income tax (CIT)) or several taxes based on client's needs and requirements.

CIT Compliance 

Leinonen supports clients with CIT compliance services. CIT calculation requires extensive knowledge of the local legislation and may be a time-consuming task. Therefore, based on data provided by client, Leinonen Lithuania can prepare CIT or other related returns and submit them to the Tax Authority.

Registration for payroll purposes

It is required to register for payroll purposes if a foreign company's employees are employed in Lithuania. Leinonen can assists with evaluation of the current situation and identify what obligations the company holds in terms of payroll registration.

Assessment of obligation for permanent establishments

A company that operates in Lithuania can create a permanent establishment (PE) in the country. Leinonen can assist and support with documentation and processes related to the procedure. Furthermore, if during an evaluation of a company it is identified that that PE has been created, Leinonen can assist with registration with Tax Authorities.

Carrying out Tax recovery procedures

If a company has identified an overpayment of taxes, Leinonen Lithuania is able to assist and provide a solution on tax recovery procedure.

Tax saving projects

Leinonen Lithuania is able to evaluate the possibility to use tax incentives establish by tax legislation. If tax incentives can be paid to a client, Leinonen can also assist with the collection and preparation of supporting documents required by the Tax Authorities.

Preparation of rulings

Leinonen's team is able to support companies in terms of ruling preparation to Tax Authorities based on provided information. We are able to assist our clients when an official explanation is needed from Tax Authorities in terms of a specific situation.

Support with Tax Investigation and other communication with Tax Authorities

Leinonen Lithuania provides full assistance in the matter of Tax investigation from Tax Authorities. We can review the required documentation and advice on what actions should be taken or if amendments should be made.

Tax Policies and other internal documentation

Leinonen Lithuania is able to support clients to prepare tax policies and other internal documentation according to company's activities. This documentation can improve company's internal processes by minimizing time spent on educating new employees about internal structures.


We provide VAT registration services for foreign companies that are established in the EU.

Foreign entity is obliged to register for VAT purposes in Lithuania if its activity is subject to VAT in Lithuania. General principle is that there is no minimum threshold for VAT registration for foreign companies (except specific cases, e.g. distance sales).

The company is required to register for VAT purposes in Lithuania if the amount of distance sales exceed EUR 35 000. Please be noted that voluntary registration is also possible.

Actual activity of the company should be evaluated, it may create tax obligations related to VAT, Corporate Income Tax (CIT) (if permanent establishment is created or the withholding tax is deducted), Personal Income Tax (PIT), payroll and other obligations. If you have any doubts, please contact us and we would be happy to discuss possible obligations.

Leinonen Lithuania’s tax advisors can support your company in preparing various tax returns (VAT, CIT, PIT, real estate tax, etc.) based on accounting data prepared by your accounting team. We also assist companies in preparing various internal policies, preparing inquiries to the authorities, representing the company during tax investigations and communication with the authorities.

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