Selling goods or services in other EU countries? The business is still small, but the VAT questions already fill a suitcase of their own? The EU small business VAT scheme (SME scheme) takes some of that weight off: with an EX number, certain sales in the EU countries you choose can be made without charging VAT.
This cross-border scheme has been in force since 1 January 2025. It is voluntary, and the EX number gives you the exemption only in the countries that have confirmed your right to use it. One number – but every country sets its own conditions.
Would an EX number help you?
A few questions about your EU sales – and you will see whether the EX number is worth applying for.
Is your business established in Lithuania?
Self-employment, an MB, a UAB or any other business all qualify – even if you are only starting out.
A rough assessment based on your answers and the information available on 8 October 2026 – not advice. Your answers are not stored or sent anywhere.
Who can apply?
Natural and legal persons established in Lithuania and carrying on an economic activity: a self-employed person under an individual activity certificate, a small partnership (MB), a private limited company (UAB) or any other business. A business that is only starting out, with no turnover yet, can apply too.
Being VAT-registered in Lithuania does not rule you out: you can be an ordinary VAT payer in Lithuania and use the SME scheme in another EU country. So Lithuania's €45,000 threshold is not a general “entry ticket” to the EX number.
Two thresholds to keep an eye on
Your total annual turnover across the EU, Lithuania included, must not exceed €100,000 excluding VAT in either the previous or the current calendar year.
In each country where you ask for the exemption, you must also meet its national or sector-specific turnover threshold. The current and the previous year are assessed – in some countries, the two previous years.
Turnover in the EU countries where you do not use the SME scheme counts too. And it is not simply the money that reached your bank account: what matters is the place of supply of each transaction under the VAT rules, and which transactions go into the turnover.
How to ask for the exemption in specific countries
The application goes to the State Tax Inspectorate (VMI) through the SME scheme system: Mano VMI → VMI sistemos → SVS. The first time, you need to grant representation rights to yourself or to an authorised person.
In the application you state your turnover by country and your foreign VAT numbers, and tick the countries where you are “requesting a VAT exemption”. VMI passes the information on to the countries you chose. If at least one confirms that you qualify, you receive an identification number ending in “EX”.
Ticking the box is not yet permission to leave VAT off the invoice. You can apply the exemption from the moment the EX number is issued and confirmed as valid in the specific country. Registration usually takes up to 35 working days; it can take longer if additional checks are needed. Registration does not cover sales that have already taken place.
Especially relevant for e-commerce
The EX number can be useful when, for VAT purposes, the place of supply of your distance sales is the buyer's EU country. The number itself does not change the place-of-supply rules.
For example, if under the ordinary rules you have not exceeded the combined €10,000 threshold for intra-EU distance sales and the related electronic services, and have not opted to be taxed in the country of destination, the place of supply may remain Lithuania. A foreign EX exemption will then not help with that sale.
The SME scheme can be combined with the One Stop Shop (OSS): apply the confirmed exemption in some countries and declare the taxable sales in others through OSS. Sales exempt under the SME scheme are not included in the OSS return. The cross-border SME scheme cannot be combined with IOSS.
And where is the small print?
Input VAT on purchases related to sales exempt under the SME scheme cannot be deducted. So before you choose the scheme, compare the output VAT you would save with the deduction you would lose.
You also file quarterly turnover reports: by 30 April, 31 July, 31 October and 31 January. They include figures for both Lithuania and the other EU countries. Invoices show the EX number, following the rules of the country granting the exemption.
If you exceed the €100,000 EU threshold, you report it within 15 working days. If you exceed a specific country's threshold, your right to the exemption is assessed under that country's rules.
The EX number can help a small business grow beyond Lithuania. Just check three things before sending the first invoice without VAT: the place of supply, the country's conditions and that the exemption has been confirmed as valid. Your accountant will breathe more easily too.