When you must register for VAT: the 45,000 EUR threshold

In Lithuania you must register for VAT once the consideration for goods supplied and services rendered within the country over the last 12 calendar months exceeds 45,000 EUR. In the very month the threshold is crossed you are already obliged to charge VAT and apply to the State Tax Inspectorate (VMI) for registration. Alongside this main threshold there is a separate 14,000 EUR limit for goods acquired from other EU member states — reaching it also triggers a registration obligation, even if your sales turnover is still modest.

This article explains how the threshold is calculated in practice, what changed in 2025, how the situation differs for a legal entity versus a sole trader, what the small-business scheme is, and exactly what to do when your turnover approaches the limit.

Once you cross 45,000 EUR, VAT must be charged from the very transaction that pushed you over the line — not from the next month and not from the day VMI processes your registration.

The 45,000 EUR threshold: when the VAT registration obligation arises

Under Lithuania's Law on Value Added Tax, the obligation to charge VAT and register arises when total consideration for goods supplied and services rendered over the last 12 months exceeds 45,000 EUR. Three points matter most:

• The threshold is based on turnover, not profit. Even a loss-making activity counts only its revenue (consideration).
• VAT applies from the transaction that crosses the line. If your turnover was 44,500 EUR and a new 1,000 EUR invoice tips you over, VAT must be calculated on the amount by which the threshold is exceeded. In practice most businesses charge VAT on all new transactions from that point on.
• The obligation and the registration are not simultaneous. The duty to charge VAT arises automatically once the threshold is crossed, even before you file with VMI. Delaying registration risks leaving you owing VAT you can no longer collect from clients.

Some income is excluded from the threshold — for example, the sale of fixed assets or certain exempt transactions. For the exact list and current guidance, see VMI's page "When you must register for VAT".

The key 2025-05-01 change: the threshold is measured over the calendar year

From 1 May 2025 an important change to the calculation principle took effect. Previously the 45,000 EUR threshold was treated as a "rolling" window of the last 12 months that carried over across the calendar-year boundary. The updated approach is tied more closely to the calendar-year period: it tracks whether turnover in the current calendar year has reached the threshold, assessing the prior year's figure separately.

Why this matters in practice:

• For seasonal businesses (e.g. summer-season services) it becomes clearer how turnover "resets" at the end of the calendar year.
• New businesses can forecast more easily when the obligation is approaching, because the reference point is clearer.
• In some cases the exact moment registration becomes mandatory shifts compared with the old "rolling window" logic.

Because this is a technically sensitive point, before making decisions about a specific month we recommend checking VMI's current explanation "How the 45,000 EUR threshold is calculated", which provides concrete worked examples.

How the threshold is calculated for a legal entity and for a sole trader

The threshold is the same — 45,000 EUR — but the context differs.

Legal entity (UAB, MB). The threshold is measured against the company's total turnover. If you run several companies, each generally has its own threshold, but VMI may assess a group of related persons if it sees artificial splitting of activity solely to avoid VAT. Dividing a business into several entities just to stay under the threshold is risky and can be reclassified.

Sole trader. A crucial nuance applies here: the 45,000 EUR threshold is measured across all economic activities carried out by the individual, not separately per activity certificate. So if one person runs two different self-employed activities, their turnovers are added together. The same applies when combining self-employment with rental income or other taxable activity.

A practical example:

1. A graphic designer earns 30,000 EUR through self-employment.
2. The same person earns another 18,000 EUR under a different activity certificate (e.g. consulting).
3. The combined 48,000 EUR exceeds the threshold, so the registration obligation arises — even though neither activity alone reached 45,000 EUR.

You can quickly estimate your VAT burden and prices with and without VAT using our VAT calculator.

The 14,000 EUR threshold for goods acquired from other EU states

Even if your sales turnover is well below 45,000 EUR, a registration obligation can arise from goods acquired from other EU member states. If the value (excluding VAT) of goods bought from EU suppliers during a calendar year exceeds 14,000 EUR, you must register for VAT and account for acquisition VAT in Lithuania.

What this means in practice:

• The threshold applies to acquisitions, not sales. This often surprises online stores and resellers who order goods from warehouses in Germany, Poland or the Netherlands.
• It counts the value of goods, not services. Services from the EU (e.g. Google or Meta advertising) are subject to separate reverse-charge rules that can create a registration obligation regardless of the 14,000 EUR threshold.
• It is measured over the calendar year.

If you regularly buy goods from the EU, this threshold deserves even closer watching than sales — it is crossed sooner than you expect. See VMI's "VAT payers" section for current guidance.

The small-business scheme (SVS): what it is and who it suits

From 2025 an EU-wide small-business scheme (SVS) took effect — a cross-border relief that, under certain conditions, lets small businesses use VAT exemption in other EU states too, as long as defined limits are not exceeded. This matters for companies and sole traders selling goods or services to customers in other EU countries who want to remain "small" for VAT purposes.

The essentials, simply:

• The national threshold in Lithuania stays at 45,000 EUR.
• The EU-wide threshold for SVS participants is separate (total annual EU turnover), and once crossed the relief no longer applies.
• The scheme is voluntary — it is for those who benefit from staying non-VAT-registered when working with private (B2C) clients, where VAT would raise the final price.

SVS does not suit everyone. If most of your clients are VAT payers (B2B), being VAT-registered is often actually advantageous — you can deduct input VAT. The decision is worth making after assessing your client mix and the size of your cost-side VAT. Check current SVS conditions and limits with VMI.

What to do once you exceed the threshold: registration steps via VMI

When turnover crosses the 45,000 EUR threshold (or the 14,000 EUR EU-acquisition limit), act without delay:

1. Pin down the moment of crossing. Identify the exact transaction and date the threshold was exceeded — this determines from when VAT is charged.
2. Submit the application to register as a VAT payer through the VMI electronic system Mano VMI (form FR0388). File promptly once the threshold is crossed.
3. Receive your VAT payer code. VMI issues a VAT code; from the start of registration you must show VAT on invoices.
4. Adapt invoicing and bookkeeping. Invoices must show the VAT rate (standard rate 21%, illustrative for 2026) and the VAT code. Inform your accounting software or accountant.
5. Begin filing VAT returns (FR0600) at the set frequency (monthly or semi-annual tax period) and pay VAT on time.
6. Review your pricing. If you work with private clients, decide whether VAT is absorbed into the price or added on top — this directly affects your competitiveness.

Important: if the obligation arose but you delayed registering, you will still owe VAT for the period from when the threshold was crossed — so delay is expensive.

How to tell whether you are approaching the threshold

It is best to monitor the threshold continuously rather than learn about it from a VMI letter. A practical minimum:

• Sum your rolling 12-month turnover each month (or calendar-year turnover under the new approach). If you have reached ~38,000–40,000 EUR, it is time to plan registration.
• Track EU acquisitions separately so you do not unexpectedly cross the 14,000 EUR limit.
• Calculate the price impact in advance. With the VAT calculator you can see in minutes how 21% VAT affects your prices with and without VAT, and how much your quotes will need adjusting.
• Consult your accountant before crossing the threshold, not after. Registering at the right moment can sometimes let you time purchases so you deduct more input VAT.

If you are growing fast and weighing how to fund expansion after crossing the VAT threshold, it is worth knowing about available EU support measures too — we cover them in our funding section.

Disclaimer: all figures (45,000 EUR, 14,000 EUR, 21% VAT rate) are illustrative and current for 2026. Tax rules change — before making decisions, verify the current information on the official VMI website or consult an accountant.

Quick summary

• You must register for VAT once turnover exceeds 45,000 EUR over the relevant period.
• From 2025-05-01 the threshold is tied more closely to the calendar-year period — check VMI's examples.
• A separate 14,000 EUR limit applies to goods acquired from the EU — a common surprise for resellers.
• A sole trader's threshold is summed across all of their activities.
• The small-business scheme lets you stay non-VAT-registered EU-wide under certain conditions.

Want to understand exactly how VAT will affect your prices before you cross the threshold? Use our free VAT calculator — in a minute you will see prices with and without VAT, and if you are planning expansion, explore the available funding measures for business.