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The most common questions when registering as a VAT payer in Lithuania

Our tax advisors have noticed that companies registering for the value-added taxpayer (further - VAT) register in Lithuania are facing difficulties as a result of which the registration process may be declined or significantly lengthened. Below we provide several main criteria that should be considered before registering for VAT in Lithuania.


  • The taxable person's intended activity. We would like to point out that there are cases when a person registering for VAT does not perform any economic activity for more than three months, respectively, such a person can be de-registered from the VAT register at the initiative of the Lithuanian tax administrator. Before applying for VAT registration we recommend that you assess when the person intends to start operating.

  • Existing/expected suppliers/customers. A very frequently asked question by the Lithuanian tax administrator during the VAT registration process, accordingly, it should be assessed whether the person registering for VAT will be able to indicate existing/expected suppliers/customers and provide contracts with them.
  • Place of activity. It should be assessed whether the person who is registering for VAT will be able to indicate the place of activity (address), submit documents proving the ownership of the place of activity or a lease agreement. If the activity is carried out remotely the TA must also be informed about it.
  • Existing/expected transaction, naming specific suppliers and customers, contract object and value. During VAT registration, the person will have to provide information about the nearest expected transaction, accordingly, it should be assessed whether the nearest transaction is known, as well as whether the person will be able to provide other necessary information such as specify providers/customers, submit contracts, invoices.
  • A person responsible for the accounting of the Company. During the VAT registration, the person will have to provide information and indicate the natural person or company responsible for the accounting of the Company, if this information has not been provided yet.
  • Bank account. It should be assessed whether the person who registers for VAT has an account in the bank and can provide information regarding this account (account no., date when the account was opened, in which bank, etc.)
  • Information about employees. During the VAT registration, a person will have to provide information about employees i.e. what is the planned number of employees, whether employment contracts have been concluded (if not, when are they planned to be concluded), what is the planned average salary of employees, or the employment contract concluded with the head of the legal entity.

 

If you have any questions, please do not hesitate to contact the Leinonen Tax team

lithuania.tax@leinonen.eu.



22.11.22


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