A small turnover does not always mean VAT registration is off the table for your business. If you buy advertising, platform fees or other services from abroad, you may have to register even when your Lithuanian sales are well below €45,000. In such cases it is worth looking at the EU small business VAT scheme (SME scheme) as it applies in Lithuania.
Do you need to register?
Enter your sales and answer a few questions – you will see whether you have to register for the SME scheme in Lithuania.
Are you already registered as a VAT payer?
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.
What the SME scheme is
The SME scheme lets a qualifying business charge no VAT on the goods and services it sells in Lithuania. It is open not only to companies but also to individuals carrying out an economic activity.
When registration is required because of certain transactions with other countries, you can choose the status of a VAT payer applying the SME scheme in Lithuania. This is not the ordinary VAT-payer status: the relief on Lithuanian sales stays, but VAT on certain purchases has to be paid.
When registration becomes compulsory
Since 1 May 2025, registration can be triggered by:
- buying services from a foreign taxable person where, under Article 95(2) of the Law on VAT, the buyer has to account for Lithuanian VAT;
- buying goods from other EU countries once the €14,000 threshold, calculated as the law prescribes, is exceeded;
- supplying services in another EU country where the place of supply follows the general rule for business-to-business services and none of the set exceptions applies.
Advertising on Meta or Google and the intermediation fees of foreign platforms are common examples of the first case. What counts is the specific service and the supplier that issues the invoice, so the name of the platform alone is not enough.
How the €45,000 threshold is assessed
Both the previous and the current calendar year count for the SME scheme. The relevant turnover must not exceed €45,000 in either of them. It is neither the two years' income added together nor the turnover of the last 12 months.
Nor does every item of income in your books count: the threshold follows the rules of the Law on VAT. For example, advance payments received and the proceeds from selling fixed assets used in the business are left out. If one person controls several companies, the rules on combined threshold calculation and their exceptions have to be considered as well.
How to register
The application is submitted through Mano VMI: Paslaugos → PVM mokestis ir registravimas → PVM mokėtojo arba / ir SVS Lietuvoje dalyvio įregistravimas (Services → VAT and registration → Registration as a VAT payer and/or SME scheme participant). Select registration as a VAT payer and as a participant in the national small business scheme.
The State Tax Inspectorate (VMI) asks in its guide for the application to be submitted at least three working days before the date you want the registration to take effect. Registration takes effect from the date stated in VMI's decision.
Which duties remain
The relevant foreign transactions are reported in the PVM101 return by the 25th of the following month. If you supply the relevant services to VAT payers in other EU countries, the FR0564 report is filed as well. A participant in the SME scheme has no right to deduct input VAT. The invoices it issues for Lithuanian sales show the VAT number but neither a VAT rate nor a VAT amount; the i.SAF VAT invoice register does not have to be filed.
In practice, the main thing is to keep an eye on your transactions with other countries and on the Lithuanian sales threshold. The SME scheme lets you keep your Lithuanian sales free of VAT, but it does not remove every VAT duty.