Larger Fines for VAT Breaches and Other Changes in Lithuania

Recently, Lithuania has implemented several taxation-related changes, including specifying cash register agreement deadlines and reducing VAT on several types of goods. The most prominent of the changes, however, is the increase in fines for VAT evasion and breaches.

Such instances of VAT breaches include failing to pay VAT and reporting a lower VAT payable or a higher VAT deductable. From May 1 this year, fines for these types of misdemeanours will be increased from 10-50% to 20-100% of the VAT due.

Another important VAT-related event in Lithuania is the VAT reduction on electronic books and digital non-periodical publications, such as textbooks. The VAT for such electronic goods will be reduced to 9%. Publications with over 80% of advertorial content will be exempt from the reduction and subject to the standard VAT of 21%. Among other VAT reductions recently approved in Lithuania are 9% VAT on accommodation, culture and sports events and 5% on food used for medical purposes.

Lastly, The State Tax Inspectorate in Lithuania specified the i.EKA date for signing agreements for cash registers. The institution informed taxpayers that companies that were obliged to submit cash register data until January this year will have until March 1, 2023, to sign an agreement with a cash register supplier or switch to new devices. The institutions affected first are supermarkets, gas stations, pharmacies, and similar.

Other companies — taxpayers using electronic registers — that have to submit the cash register data until November 2023 have to sign an agreement or renew equipment until October 31, 2023.

Corporate Tax