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Lithuania: VAT reverse-charge mechanism, computers and mobile phones; other VAT developments

Lithuania: VAT reverse-charge mechanism

Value added tax (VAT) related items in Lithuania include the following:

1000

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Certain supplies of electronics are subject to the domestic VAT reverse-charge mechanism:

  • Mobile phones, tablets, and portable laptop computers (until 30 June 2022)
  • Hard drives (until 28 February 2022).

The VAT reverse-charge mechanism is only applied if these goods are acquired by a Lithuanian VAT-payer. An additional exception, however, may apply when the goods are purchased by cash (i.e., a cash register receipt is issued in addition to the VAT invoice). In such instances, the reverse-charge mechanism is not applied, despite the VAT status of the customer.

VAT reporting

A calendar quarter (three months) VAT reporting period has been introduced in Lithuania. Only VAT-payers with income from an economic activity in the previous calendar year that did not exceed €300,000 are eligible to apply for the quarterly reporting period. The quarterly reporting period is available only for companies, and not individuals, registered for VAT purposes in Lithuania. Regardless of whether the quarterly VAT reporting period is applied, companies are still required to submit the i.SAF invoice registers on a monthly basis.

Excise tax on tobacco

Effective 1 November 2019, an amendment to the excise tax law in Lithuania provides that “unmanufactured tobacco” (classified under Combined Nomenclature code 2401) will be subject to excise tax (duty) amount of €68.6/kg. Further, the excise tax (duty) rate is already set to be increase further as of 1 March 2020 and 1 March 2021.

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