How to Claim a VAT Refund in Lithuania

Which VAT Refund Route Applies to Your Business?

Your route depends on where your business is established and whether it is VAT-registered in Lithuania. Lithuanian-registered businesses reclaim input VAT on the periodic return. EU businesses file through their home-country portal under Directive 2008/9/EC. Non-EU businesses file directly with VMI under the 13th Directive. The table below maps each path.

What Is the VAT Rate in Lithuania?

Lithuania’s standard VAT rate is 21% under the Law on Value Added Tax (PVM, Pridėtinės vertės mokestis), aligned with EU Directive 2006/112/EC. Two reduced rates apply, 12% and 5%, plus a 0% rate for exports and intra-Community supplies. The 9% rate was abolished on 1 January 2026. The rates below are current for 2026.

The 9% band was removed and split into the 12% and 5% rates by Law No. XV-287, per VMI. Residential heating and firewood moved to the 21% standard rate at the same time, per VMI.

Who Is Eligible for a VAT Refund in Lithuania?

Three groups qualify: Lithuanian VAT-registered businesses, EU businesses with no fixed establishment and no taxable supplies in Lithuania, and non-EU businesses from reciprocity countries. Exporters with zero-rated outputs also keep their input VAT deductible. Each group files through a different route, so confirm your status before you prepare a claim.

Lithuanian-registered businesses

Lithuanian VAT-registered businesses reclaim input VAT through the periodic return filed via VMI EDS (Elektroninio deklaravimo sistema, the Electronic Declaration System). When input VAT exceeds output VAT, the excess is refunded or carried forward, per VMI.

EU-based businesses

EU businesses recover Lithuanian VAT under Directive 2008/9/EC. The claimant must not have made taxable supplies in Lithuania during the refund period, aside from limited reverse-charge and exempt-transport supplies. Breaching this condition is a common rejection cause, because the business should have registered instead.

Non-EU businesses

Non-EU businesses apply under the 13th Directive, conditioned on reciprocity. Lithuania refunds VAT only to businesses from countries that offer Lithuanian businesses the same treatment, per the European Commission’s Lithuania country guidance.

Exporters and zero-rated suppliers

Exporters keep input VAT deductible on zero-rated outputs. Recovery requires customs export proof and valid invoices, per VMI’s guidance on the 0% rate under Articles 41 to 56 of the PVM įstatymas.

Can a UK Company Reclaim Lithuanian VAT?

Yes. Post-Brexit, United Kingdom (UK) businesses claim as non-EU claimants under the 13th Directive, filing directly with VMI by 30 June of the following year. VMI’s dedicated UK guidance confirms Lithuania refunds VAT to UK taxable persons on a reciprocity basis, subject to restrictions. Those restrictions exclude passenger cars, taxi services, and entertainment and representation expenses.

Lithuania’s other reciprocity partners include Armenia, Iceland, Canada, Norway, Switzerland, and Turkey, per VMI. Confirm your country’s status before you file, because a failed reciprocity check voids the claim.

What Are the Lithuania VAT Refund Deadlines and Minimum Thresholds?

EU claims are due by 30 September of the following year. Non-EU claims are due by 30 June. Domestic returns are due by the 25th of the month after the period. Claim periods run from three months to one calendar year. Minimum amounts are €400 for partial-year claims and €50 for a full year. The table below carries the detail.

Which Expenses Are Eligible for a VAT Refund in Lithuania?

VAT on business expenses tied to taxable activity qualifies, including import VAT paid at customs. The recoverable categories carry over cleanly from standard Lithuanian practice, and foreign claimants recover VAT only on the business-use share of each purchase, per VMI.

Typical refundable expenses:

• Rent, utilities, and maintenance for business premises
• Professional services such as accounting, legal, and consulting
• Travel, accommodation, and transport within Lithuania
• Marketing, exhibitions, and trade event costs
• Import VAT paid at customs on goods entering Lithuania

Which Expenses Are Not Refundable in Lithuania?

Entertainment, hospitality, catering, non-business gifts, passenger vehicles not used exclusively for business, and costs tied to VAT-exempt activities such as education, healthcare, and finance are excluded, per the PVM įstatymas. One common claim fails here: mixed-use purchases are not a blanket exclusion, despite what many guides state.

Lithuania allows pro-rata partial deduction on the business and taxable portion of a mixed-use purchase under Articles 58 to 60 of the PVM įstatymas, which implement Article 173 of Directive 2006/112/EC. The deductible percentage equals taxable-activity income divided by total income, with a 95% income threshold setting the method under Article 60, per VMI. Only the private-use share is blocked. Representation expenses are deductible only in part, not in full, under the VAT Law.

How Do Lithuanian Businesses Reclaim Input VAT? (Step by Step)

File form FR0600, the official VMI VAT return, through VMI EDS and elect a refund when input VAT exceeds output VAT. FR0600 remains VMI’s current form code, with an updated version effective 1 January 2026 to add the new 12% rate box, per VMI’s FR0600 page. The steps below follow the standard filing routine.

1. Confirm active VAT registration with VMI.
2. Review deductible expenses and tie each to taxable activity.
3. Prepare and file FR0600 via EDS by the 25th.
4. Elect refund of the excess rather than carry-forward.
5. Supply invoices digitally if VMI requests verification.
6. Track status in the EDS dashboard.
7. Retain records for 10 years.

How Do EU Businesses Claim a VAT Refund in Lithuania?

File through your home country’s electronic VAT refund portal under Directive 2008/9/EC. The home authority forwards the claim to VMI, which decides within four months, extendable to eight months if it requests more information. EU refund claims never start on a Lithuanian portal. EDS is for domestic filing only.

Steps for EU claimants:

1. Confirm no fixed establishment and no taxable supplies in the period.
2. File through your home-country portal by 30 September.
3. Attach invoices that meet Lithuanian field rules.
4. Respond to any VMI information requests.
5. Receive the refund in euros to the stated IBAN (International Bank Account Number).

How Do Non-EU Businesses Claim a VAT Refund in Lithuania?

Apply directly to VMI under the 13th Directive by 30 June of the following year, with reciprocity as the gatekeeper. A local agent is optional for refund claims and acts under a notarized power of attorney, per the European Commission’s Lithuania questionnaire response. The mandatory fiscal-representative rule applies to non-EU VAT registration, not to 13th Directive refund claims.

Required attachments:

• Original VAT invoices and import documents
• Certificate of taxable status from the home tax authority
• Proof of payment and verified bank details
• Power of attorney if a representative files

Refunds are paid in euros once VMI completes verification.

What Documents Do You Need for a Lithuanian VAT Refund?

You need valid VAT invoices, the return or directive application, a certificate of taxable status for non-EU claims, proof of payment, and a power of attorney if a representative files. The table below sets out each document, and three compliance-critical rules follow it.

Mandatory invoice fields. Each invoice must show the supplier name and VAT number, buyer details, invoice date and number, description and quantity, taxable amount, VAT rate and VAT amount, and total. An invoice missing any field is rejectable, per VMI.

VIES verification. Verify each supplier’s VAT ID in the EU VIES system, the VAT Information Exchange System, before you claim the deduction. An invalid supplier ID invalidates the input VAT.

Translation. VMI may require a translation of invoices and supporting documents not in Lithuanian or English, and untranslated documents are a common rejection cause. Keep all records for 10 years under the Lithuanian Accounting Act.

How Long Does a Lithuania VAT Refund Take?

Domestic refunds typically pay out within 30 days of the return. Cross-border claims are decided within four months, extendable to eight months if VMI requests more information. If VMI misses its statutory deadline, Lithuania’s Law on Tax Administration (Article 87) entitles the claimant to interest. That daily rate is 0.026% per day, effective 1 November 2025, per the Ministry of Finance. Refunds pay in euros to the bank account on the application.

How We Simplify Lithuanian VAT Refunds

Three things decide whether your refund arrives: picking the right route, hitting the deadline, and keeping the documentation clean. Miss one and VMI forfeits or delays the claim. Commenda’s global indirect tax platform tracks VAT filing and refund deadlines across jurisdictions, validates invoices and supplier VAT IDs before submission, and keeps audit-ready records for statutory retention periods.

It connects through 100+ ERP, API, and custom integrations, so your data flows in without manual entry. Keep every deadline in one view with the compliance calendar, and confirm supplier IDs with global tax ID verification before you claim. Book a demo to see every Lithuanian and EU VAT deadline tracked in one dashboard before the 30 September window closes.