Before beginning operations, your business must submit an application for VAT registration with the Lithuanian authorities. The late submission of the registration application may result in financial penalties.
Documents to present for registering
It is imperative to get in touch with the Lithuanian tax authorities if your business desires to register for VAT there. You don’t need to get in touch with the tax authorities in your establishment country.
Businesses must supply the following records in particular:
- The VAT registration form(s) filled out in the national language.
- A copy of the association’s bylaws from the trade register, an excerpt.
- A VAT liability certificate.
- Legal authority (if using a fiscal agent).
- A contract, or any document that attests to the activity taking place on the country’s soil.
Some of these documents may need to be translated into Lithuanian, according to the tax authorities in Lithuania.
VAT number from another country
You first learn the guidelines. It typically takes one month to get the VAT number from the responsible Lithuanian tax office if your filing is complete.
A fiscal representative
The VAT authorities in Lithuania may demand that non-European businesses hire a fiscal representative. This is a neighborhood business that will speak on your behalf to the regional VAT authorities. He is in charge of upholding all of your VAT duties, including those he was not aware of. For this reason, before accepting the representation assignment, he might ask for a deposit (such as a bank guarantee).
Proxy holding formalities
Companies based in Europe are not required to name a tax representative. However, they may appoint a proxy holder to handle the tax formalities on their behalf in order to simplify their interactions with the local tax authorities. It is not essential to provide a bank guarantee in this situation. The corporation is still completely liable for paying its VAT obligations.
The supplied documents must be written in Lithuanian in accordance with national standards. Documents that are not in the official state language must be accompanied by a translation that has been certified by the translator and is signed and sealed.
For this reason, before accepting the representation assignment, he might ask for a deposit (such as a bank guarantee). The supporting paperwork listed in Order No. 221 of the Minister of Finance of the Republic of Lithuania dated July 4, 2002, approved the process and prerequisites for the appointment of a fiscal agent of a foreign taxable person, and the supporting paperwork listed in Order No. 221 of the Minister of Finance of the Republic of Lithuania dated July 4, 2002, which approved the process and prerequisites for the appointment of a fiscal agent of a foreign taxable person.
Duration of registration
Following receipt of the application, the decision about registration in the Register of Taxpayers for VAT purposes is made within 5 working days. If any more papers are needed, the decision is made within three working days starting on the day following receiving the new or updated information. This business has a Lithuanian VAT number assigned to it. Each EU member state’s VAT number follows a standard format. In Lithuania, it begins with the prefix LT and then a string of nine or twelve numbers. For instance: LT 123456789
Take away
As soon as a business has its VAT number, it is free to begin doing business and collecting Lithuanian VAT. It must submit frequent returns and adhere to Lithuania’s VAT compliance regulations. After submitting the application Form FR0227, the decision about registration in the Register of Taxpayers is made within 5 working days which is a bit easier as compared to other states which take more days.
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