RENTING PREMISES? New VAT rules
If your tenant is a VAT-registered small business scheme (SBS) taxpayer in Lithuania, you can’t charge VAT on the rent, even if you have done so before.
The VAT treatment remains valid if:
The lessee has a foreign VAT code (not Lithuanian).
You have opted for VAT on rentals and this is clearly stated in the contract.
You have notified the VAT authorities of your choice.
If you have calculated VAT but have not notified the VAT authorities, this is considered an option and you must indicate from when you apply VAT.
The option will be valid for 24 months.
Please note: Having a VAT code does not entitle you to be treated as a “normal” VAT taxable person.
This is important for the construction and real estate sectors, where the nuances of VAT application can have serious financial consequences.
If you have any questions, please get in touch and we’ll help you assess your situation and get your paperwork in order.
