Lithuania - Transition to SABIS for B2G E-Invoicing

On July 1, 2024, the Lithuanian National Centre for General Functions (NBFC) launched a new platform for submitting business-to-government (B2G) e-invoices. This new platform, SABIS, replaces the previously established E.sąskaita as part of implementing the Lithuanian project “Modernization of the information system “E.sąskaita.”

Based on Resolution No. 405 issued by the Lithuanian government in 2022, which is in line with the EU Directive 2014/55/EU on electronic invoicing in public procurement, the project aims to fundamentally update the outdated system by changing the technological platform and encourage businesses to join the PEPPOL network and integrate into the European e-invoicing infrastructure.

NBFC decided to roll out the new SABIS platform in two stages, allowing taxpayers to prepare and ensure compliance. However, the timeline for transitional operations and to adapt to the new requirements is short.

Timeline of Transitional Operations
The transition for E.sąskaita to SABIS will last two months, starting July 1, 2024, and ending August 31, 2024. The transitional operations will be completed gradually, in two stages, one in July and one in August.

Stages in July are set in a few successive phases, shown below accordingly:
● Week 1- Institutions connected to SABIS view, manage account data, users, and their rights, create new or block old users, and organizations review public procurement contracts and their data and initiate or register contracts concluded outside public procurement.
● Week 2—Through SABIS, invoices are submitted and accepted according to verbal contracts, and other invoices are submitted and accepted after coordination between buyers and suppliers.
● Weeks 3-4 - After coordination between buyers and suppliers, invoices are submitted and accepted via SABIS, or, in case of difficulties, the "E.sąskaita."

During the second stage of transitional operations in August, suppliers submit invoices through SABIS, and only in case of difficulties do they use the E.sąskaita, whereas buyers use both systems.

After both stages are complete, SABIS will begin fully operating on September 1, 2025, while E.sąskaita will no longer be available from August 30, 2024.

Procedures to Submit Invoices

Businesses that have commercial transactions with state institutions now have three ways to submit invoices:
1. Through the SABIS user interface (SABIS portal),
2. From the supplier's accounting system through the Universal interface (API),
3. Through the PEPPOL network, if they are a member of this network.

Entering invoices through the SABIS portal requires manual submission, and it is generally useful for businesses that submit only a few invoices. Contrary to this, transferring data to SABIS via an API is best for larger quantities or with frequent periodicity.

Businesses that use the PEPPOL network can submit invoices to SABIS, send invoices to business partners, and receive invoices from suppliers. This will be relevant once the EU introduces mandatory e-invoicing for cross-border transactions.

In addition to changes in invoice submission methods, SABIS introduced new invoice formats, including the Peppol BIS Billing 3.0 (Invoice and Credit Note) and Peppol BIS Billing CII Invoice formats, which adhere to the European standard UBL XML for streamlined VAT calculations.

Takeaway
With the introduction of SABIS, the Lithuanian government made significant steps toward modernizing the Lithuanian e-invoice system. Businesses interacting with government institutions must be proactive and choose the correct method of invoicing based on their needs.

Corporate Services, VAT