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country-icon Lituanie

05.02.23

Proposed VAT registration rise

In what appears to be a busy month for countries raising the VAT threshold, much like Italy this month who is proposing a similar measure, Lithuania is seeking to raise its VAT registration threshold.   Lithuania seeks a rise from 45,000 Euros to 65,000 Euros.     While streamlining of the compliance and fiscal-related procedures typically serves as the main motivation behind this, it is believed that external factors-particularly inflation, also can trigger a request for a rise in the VAT registration threshold.   Approval for raising the VAT threshold is currently with Parliament. The EU VAT Directive outlines some limits in respect of the application of raising the VAT threshold, but it is possible to apply for a derogation to circumvent this.  

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