On 18 June 2026, the Lithuanian Parliament adopted amendments to the VAT Law (No. IX-751) affecting Articles 4-1, 4-2, 4-3, 5-1, 12, 12-2, 13-2, 78, 88-1, 115-1, 115-6, 115-11 and Annex 2. The VMI announced the changes on 7 August 2026. Notably, Article 4-2 (special scheme for small enterprises) has been repealed effective 1 January 2027, while other articles modernize place-of-supply rules, digital services VAT, and the One Stop Shop (OSS) mechanism.
Key Takeaways
- Repeal of Small Enterprise Scheme: Article 4-2 simplification for micro-businesses is abolished; affected taxpayers must transition to standard VAT accounting by 1 January 2027.
- Digital Services and OSS Expansion: Articles 78 and 88-1 extend the OSS to additional B2C services, aligning with EU VAT e-commerce package updates.
- Place-of-Supply Clarifications: Amendments to Articles 12, 12-2, and 13-2 refine rules for immovable property, passenger transport, and culturally related services, reducing double taxation risks.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Original Announcement