Baltic state to increase threshold from €45,000 to €55,000 – fifth highest in the EU
Lithuania has drawn up legislation to increase the annual sales threshold for VAT registration. From the 1 January 2025 it will increase from €45,000 to €55,000. This would make it the fourth highest threshold in the European Union following Italy VAT registration threshold rise at the start of this year to €85,000. The measure is now with Parliament.
The aim will be to lift many small businesses out of the compliance burden of VAT, and also enable B2C services a tax break since they will not have to charge VAT on their prices. The sharp rise of the threshold is also partially due to record-breaking inflation rates of over 20% following the Russian invasion of Ukraine.
The EU VAT Directive sets the limits on VAT registration thresholds. However, member states may apply for a derogation – these are generally provided by the European Commission with the proviso of a time-limit and need for economic evaluation if a further waiver is required.
Lithuanian VAT administration
Lithuania’s VAT (Value Added Tax) administration is overseen by the State Tax Inspectorate (STI) under the Ministry of Finance. VAT is a consumption tax applied to goods and services at various stages of production and distribution. The standard VAT rate in Lithuania is 21%, with reduced rates of 9% for specific services like heating and accommodation, and 5% for certain medical and educational supplies.
Businesses operating in Lithuania must register for VAT if their annual turnover exceeds €45,000. Once registered, they must charge VAT on taxable goods and services, issue proper invoices, and periodically file VAT returns with the STI. Returns are typically filed monthly, though some businesses may qualify for quarterly submissions depending on their turnover.
The STI conducts regular audits and inspections to ensure compliance with VAT regulations, and non-compliance can result in penalties and interest on overdue taxes. Lithuania is also integrated into the EU VAT system, meaning cross-border transactions within the EU are subject to specific VAT rules, including the reverse charge mechanism for certain goods and services, where the VAT liability shifts from the seller to the buyer. This integration helps streamline VAT collection across EU member states.
2025 EU VAT registration & Intrastat reporting threshold
| Country | VAT Registration thresholds | Intrastat thresholds | |||||
| Resident | Non-resident | Arrivals | Dispatches | Arrivals Statistical | Dispatches Statistical | ||
| EU One-Stop Shop | €10,000 | €10,000 EU sellers only | - | - | - | - | |
| Austria | €42,000 | Nil | €1,100,000 | €1,100,000 | €12m | €12m | |
| Belgium | €25,000 | Nil | €1,500,000 | €1,000,000 | €25m | €25m | |
| Bulgaria | BGN 100,000 | Nil | BGN 1.7m | BGN 2.2m | €17m | €36.1m | |
| Croatia | €60,000 | Nil | €450,000 | €300,000 | €450,000 | €300,000 | |
| Cyprus | €15,600 | Nil | €350,000 | €75,000 | €2.7m | €5.8m | |
| Czechia | CZK 2m | Nil | CZK 15m | CZK 15m | CZK 30m | CZK 30m | |
| Denmark | DKK 50,000 | Nil | DKK 22m | DKK 11m | DKK 22m | DKK 11m | |
| Estonia | €40,000 | Nil | €700,000 | €350,000 | €700,000 | €350,000 | |
| Finland | €20,000 | Nil | €800,000 | €800,000 | €800,000 | €800,000 | |
| France | Goods €85,000 Services €37,500 | Nil | Discretionary | Discretionary | Discretionary | Discretionary | |
| Germany | €22,000 | Nil | €800,000 | €500,000 | €49m | €51m | |
| Greece | Nil | Nil | €150,000 | €90,000 | €150,000 | €90,000 | |
| Hungary | HUF 12m | Nil | HUF 270m | HUF 150m | HUF 5.5bn | HUF 15bn | |
| Ireland | Goods €85,000 Services €42,500 | Nil | €500,000 | €635,000 | €5m | €34m | |
| Italy | €85,000 | Nil | See country guide | See country guide | See country guide | See country guide | |
| Latvia | €50,000 | Nil | €350,000 | €200,000 | €5m | €7m | |
| Lithuania | €55,000 | Nil | €570,000 | €400,000 | €7m | €10m | |
| Luxembourg | €50,000 | Nil | €250,000 | €200,000 | €4m | €8m | |
| Malta | Goods €35,000 Other €30,000 | Nil | €700 | €700 | €700 | €700 | |
| Netherlands | €20,000 | Nil | Discretionary | Discretionary | Discretionary | Discretionary | |
| Poland | PLN 200,000 | Nil | PLN 6.0m | PLN 2.8m | PLN 105m | PLN 158m | |
| Portugal | Nil | Nil | €600,000 | €600,000 | €6.5m | €6.5m | |
| Romania | RON 300,000 | Nil | RON 1m | RON 1m | RON 10m | RON 20m | |
| Slovakia | €62,500 | Nil | €1m | €1m | €1m | €1m | |
| Slovenia | €60,000 | Nil | €220,000 | €270,000 | €4m | €9m | |
| Spain | Nil | Nil | €400,000 | €400,000 | €400,000 | €400,000 | |
| Sweden | SEK 120,000 | Nil | SEK 15m | SEK 4.5m | SEK 15m | SEK 4.5m | |
| Non-EU | |||||||
| Bosnia | BAM 100,000 | Nil | n/a | n/a | n/a | n/a | |
| Iceland | ISK 2m | Nil | n/a | n/a | n/a | n/a | |
| Montenegro | €35,000 | Nil | n/a | n/a | n/a | n/a | |
| Norway | NOK 50,000 | Nil | n/a | n/a | n/a | n/a | |
| Russia | RUB 8m (on application) | Nil | n/a | n/a | n/a | n/a | |
| Switzerland | CHF 100,000 | CHF 100,000 global income | n/a | n/a | n/a | n/a | |
| Turkey | Nil | Nil | n/a | n/a | n/a | n/a | |
| UK (Intrastat Northern Ire only) | £90,000 (Apr 2024) | Nil | £500,000 | £250,000 | £24m | £24m | |
