E-Invoicing in Lithuania: The Timeline
The government passed the 2015 Resolution No. 254 on VAT invoices and credit and debit documents using eSaskaita, recommending e-invoicing for B2B transactions.
The Lithuanian parliament revised the Law on Public Procurement on 2 May 2017, paving for mandatory B2G invoicing in public procurement for central, regional, and local contracting authorities and entities.
The law doesn’t specify any e-invoicing standard in public procurement but mandates the use of eSaskaita, the national electronic invoicing portal.
To implement the EU Directive 2014/55/EB, the government validated the Law on Public Procurement on 10 June 2019, allowing economic operators to use a service provider of their choice for EN compliance.
The e-invoicing is expected to roll out by 1 September 2023. Businesses can use the eSaskaita platform free of charge for 5 years.
Requirements of Electronic Invoicing in Lithuania
Currently, the Lithuanian government is spearheading the implementation of the e-invoicing plan submission.
According to the project outline and technical requirements, e-invoices in Lithuania must comply with the Peppol Network and Peppol BIS 3.0.
Businesses and companies ready to participate in the project must submit their implementation plan to the Central Project Management (CPVA).
Electronic invoicing in Lithuania isn’t mandatory for the private sector, as are continuous transaction controls.
e-Invoicing Platforms and Management Solutions in Lithuania
The Law on Public Procurement mandates that economic operators and public contracting authorities must digitally implement B2G electronic invoicing in public procurement.
Lithuania uses a centralized model to allow the submission and processing of electronic invoices through the eSaskaita portal per the UBL v2.1 Standard.
The Lithuanian Ministry of Finance is responsible for the portal. The Lithuanian Centers of Registers, on the other hand, operate the platform as a service provider.
While companies are free to use eSaskatia, the platform’s biggest shortcoming is that it doesn’t provide the best user experience or customised e-invoicing solution.
Businesses looking for customised electronic invoicing that complies with the EU Directive 2014/55/EU can partner with Unimaze for a tailor-made solution.
What Does Adoption of e-invoicing in Lithuania Mean?
The introduction of e-invoicing in Lithuania will benefit businesses and the larger economy in many ways, including;
Increased Data Accessibility
With the adoption of e-invoicing in Lithuania, businesses can access real-time data on their transactions and invoices. That way, they can make more informed financial health and cash flow decisions.
Boosted Economic Growth
By embracing electronic invoices, Lithuania is taking a step towards digitalizing its economy, which can help boost economic growth and increase competitiveness on a global scale.
Enhanced Customer Experience
E-invoicing can improve the customer experience by reducing the time it takes to receive invoices and make payments, leading to a more efficient and streamlined invoicing process.
Improved Tax Compliance
Implementing electronic invoices can help Lithuanian businesses comply with tax regulations by providing an accurate and transparent record of all transactions. By extension, this makes it easier for tax authorities to monitor and verify tax compliance.
Because of its ability to provide a clear and transparent record of transactions, e-invoicing can help increase trust between business partners and reduce the risk of disputes or misunderstandings.
E-invoicing helps reduce invoice fraud risk, a common problem in traditional invoicing methods. By providing secure and encrypted invoices, e-invoices can prevent fraud and protect businesses from financial loss.
E-invoicing reduces the need for manual invoice processing and paper-based methods. That way, e-invoicing in Lithuania can help businesses save money on administrative costs and reduce the risk of errors or delays.
Improved Business Relationships
E-invoicing can strengthen business relationships by providing a more efficient and transparent invoicing process. This can lead to better communication and collaboration between business partners, leading to stronger partnerships and increased opportunities for growth.
Increased Adoption of Digital Technologies
By implementing electronic invoices, Lithuania is taking a step towards digital transformation, which can help increase the adoption of other digital technologies and create new opportunities for innovation and growth.
Improved Regulatory Compliance
Electronic invoices can help businesses comply with local and international regulations by providing a clear and transparent record of all transactions.
This can enable them to avoid fines and penalties for non-compliance and improve their reputation as responsible and compliant business partners.
Getting Started with e-Invoicing in Lithuania with Unimaze
Economic operators in Lithuania looking for a reliable and experienced e-invoicing provider can partner with Unimaze to start digitalizing their accounting processes.
Unimaze is a member of the openPEPPOL and a certified Peppol Access Point provider. We offer our clients around the globe fast and reliable solutions designed to enable seamless electronic business document exchange.
Unimaze e-invoicing offers the right framework to help companies in Lithuania comply with the new regulation.
Apart from ensuring content integrity, legibility assurance and authenticity of origin, Unimaze guarantees your financial data's safety. We'll also help you archive the data for the period as per the regulation in Lithuania.
Unimaze enables electronic legal compliance in over 50 countries around the world.
Our world-class e-invoicing solutions include:
We will analyze your business needs and curate an e-invoicing solution tailored to your specific needs.