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The Lithuanian State Tax Inspectorate (STI) announces that as soon as the European Commission confirms the decision, Lithuania will apply 0 VAT on support for Ukraine.

Based on this provision, all goods and services supplied to beneficiaries of aid or relief for the victims of war or other disasters in Ukraine will be taxed at a 0% VAT rate. The relief will apply to purchases both in Lithuania and from the other EU Member States. Up until now, only imported disaster relief was VAT-exempt.

This relief measure aims to enable support organizations to buy more goods and services for relief purposes. The STI will announce the beginning of this relief measure as soon as the EC decision comes through.

When purchasing goods and services for victims of the war in Ukraine, the VAT payer will be required to submit a document proving the status of a beneficiary. The information on the beneficiaries will also be published on the STI‘s website. Furthermore, together with the beneficiary‘s status, the VAT payer will have to state the purpose of the use of the goods and services by providing a written confirmation that the goods and services will be used for the free distribution or free use of the disaster victims.

The amendment will be back-dated and applied from the beginning of the military aggression of the Russian Federation against Ukraine on 24 February 2022. VAT reimbursements will be available upon submitting credit VAT invoices for goods and services already supplied to victims of the war.

According to the STI, this Value Added Tax amendment was made possible by the changes to the European VAT directive, which allowed reduced VAT rates. The adjustments to the VAT directive were made in early April 2022.

Corporate Tax