Article

Getting up to Speed With e-Invoicing in Lithuania

6 March 2023

Lithuania is set to implement mandatory e-invoicing later this year.

Unimaze takes you through the latest news and updates on the event, enabling you to prepare for compliance with the regulatory requirements when the government rolls out the initiative.

E-Invoicing in Lithuania: A Quick Overview

E-Invoicing/CTC Model

  • B2G: Centralised/Peppol
  • B2B: Post-Audit

Mandatory Infrastructure

B2G: eSaskaita / Peppol

B2B: Not Applicable

Mandatory e-Invoice Format

B2G:: UBL 2.1 LT, Peppol BIS

B2B: Not Applicable

Issuing Mandate

B2G: Suppliers to All Contracting Authorities

B2B: No Clear-cut Requirements

Receiving Mandate

B2G: All Contracting Authorities

B2B: The Buyer Has to Give Consent

Digital Signature

Not Required for B2B

Required for B2G

Archiving Abroad

Allowed under specific conditions

Archiving Period

10 Years

E-Invoicing in Lithuania: The Timeline

2015

The government passed the 2015 Resolution No. 254 on VAT invoices and credit and debit documents using eSaskaita, recommending e-invoicing for B2B transactions.

2017

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.

2019

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.

Increased Trust

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.

Reduced Fraud

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.

Reduced Costs

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:

To get started, Book a Meeting with one of our e-invoicing experts or contact our customer help desk.

We will analyze your business needs and curate an e-invoicing solution tailored to your specific needs.

E-Invoicing in Lithuania: Frequently Asked Questions (FAQs)

How Do I Register for VAT In Lithuania?

To register for VAT in Lithuania, you will need to follow these steps:

  • Determine if You Need to Register for VAT: Businesses engaged in Lithuania's taxable activities and meet the registration threshold (currently €45,000) must register for VAT.
  • Obtain a Lithuanian Tax Identification Number: If you do not have a Lithuanian tax identification number, you will need to obtain one before registering for VAT. You can do this by applying to the Lithuanian State Tax Inspectorate.
  • Submit a VAT Registration Application: Once you have a Lithuanian tax identification number, you can submit a VAT registration application to the Lithuanian State Tax Inspectorate. The application can be submitted online or in person at a tax office.
  • Provide Supporting Documents: Along with your VAT registration application, you must provide supporting documents, such as a copy of your company's registration documents and proof of address.
  • Wait for Approval: The Lithuanian State Tax Inspectorate will review your application and supporting documents. They will issue you a VAT registration certificate if everything is in order.

Once registered for VAT, you must comply with Lithuanian VAT regulations, such as filing regular VAT returns and collecting and remitting VAT on taxable transactions.

It's important to stay up-to-date with these regulations to avoid penalties and fines.

What Tax Do You Pay in Lithuania?

In Lithuania, taxes are collected by the State Tax Inspectorate (Valstybinė mokesčių inspekcija). Lithuania's main types of taxes include:

  • Personal Income Tax (PIT): This tax is imposed on individuals' income, including employment income, rental income, and capital gains. The current tax rate for PIT in Lithuania is a flat rate of 15%.
  • Value-Added Tax (VAT): This is a tax imposed on the value added to goods and services at each stage of production and distribution. The standard VAT rate in Lithuania is 21%, and there are also reduced rates of 5% and 9% for certain goods and services.
  • Corporate Income Tax (CIT): This tax is imposed on the profits of businesses and other entities. The current CIT rate in Lithuania is 15%.
  • Real Estate Tax: This is a tax imposed on the ownership of real estate, including land, buildings, and apartments. The tax rate varies depending on the location and value of the property.
  • Excise Tax: This tax is imposed on certain goods such as alcohol, tobacco, and petroleum products.

It's worth noting that tax laws and rates are subject to change, so it's always a good idea to consult with a tax professional or visit the official website of the Lithuanian government for the most up-to-date information.

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