VAT (PVM) regimes — 21 / 9 / 5 / 0%

Lithuanian PVM (Pridėtinės vertės mokestis — value-added tax) is governed by the PVM įstatymas (VAT Act) and operated by the VMI via the monthly or quarterly PVM return. Four rates: standard 21%, reduced 9%, super-reduced 5%, and zero 0%. The standard 21% rate has been in force since September 2009 and has not moved since — unusual stability in Central Europe.

History — from LTL to euro, PVM stable

Lithuania introduced VAT back in 1994 at 18%. The raise to 21% in September 2009 — at the height of the crisis — remained in place despite the return to growth. Lithuania's singularity: no super-reduced rate before 2018, unlike Finland (10%), Poland (5%), or France (2.1%). The 5% was introduced slowly and remains limited to a narrow scope (healthcare + press).

text pvm-timeline.txt

1994       | Lithuania introduces VAT (PVM) at 18% standard.
           |
2002       | Standard raised to 18%, reduced 5% (medicines, books,
           | newspapers). Preparation for EU accession 2004.
           |
2004       | EU accession — alignment with VAT directive 2006/112/EC
           | (transposed later). Rates 18 / 5 / 0%.
           |
2009       | Crisis — emergency raise to 19% then 21% in September.
           | Reduced 9% introduced for district heating (Baltic
           | winters' social rationale).
           |
2015       | Lithuania joins the euro area (1 January 2015).
           | Accounting conversion LTL → EUR (1 EUR = 3.4528 LTL fixed).
           | PVM rates unchanged.
           |
2018       | Super-reduced 5% extended — reimbursable medicines,
           | compensable medical devices.
           |
2021       | Reduced 9% extended to books, e-books, newspapers and
           | magazines (alignment with directive 2018/1713/EU).
           |
2023       | Temporary reduced 9% on restaurants (post-COVID), repealed
           | end-2023, return to 21% standard.
           |
2024-2026  | Stability 21 / 9 / 5 / 0%. Discussions on extending 5%
           | to other essentials (green energy).

Governance — Finansų ministerija + VMI

The legal framework is owned by the Finansų ministerija via the PVM įstatymas. Interpretation and control are operated by the VMI (Valstybinė mokesčių inspekcija). Any rate or scope change requires a vote of the Seimas (Lithuanian Parliament) on government proposal.

EU directive alignment is followed by a technical committee Finansų ministerija + VMI + Lietuvos bankas + professional federations (LPK — Confederation of Industrialists, LVK — Confederation of Employers).

Rates and bases — 21 / 9 / 5 / 0%

Standard 21% — all goods and services outside reduced scopes. Stable since September 2009.
Reduced 9% — residential district heating (centralizuota šiluma), firewood, public passenger transport, printed and e-books, newspapers and magazines, hotels.
Super-reduced 5% — medicines reimbursable by health insurance (VLK), compensable medical devices, printed periodicals (since 2021).
Zero 0% — export outside the EU, intra-EU B2B supplies (with transport proof), international services per Directive 2006/112/EC art. 146-153.
Out of scope — universal postal services, education, healthcare (except medicines), worship, some financial and insurance services.

text pvm-deklaracija-fr0600.txt

┌─────────────────────────────────────────────────────────────────┐
│  PVM deklaracija (form FR0600) — VAT return                      │
├─────────────────────────────────────────────────────────────────┤
│  Period      : 2026-05 (monthly — taxable person >€200K T/O)    │
│  ID          : LT100001234567 (PVM mokėtojo kodas)              │
│                                                                  │
│  Sales 21%          : 145,230.00 EUR  VAT :  30,498.30 EUR      │
│  Sales 9%           :   8,460.00 EUR  VAT :     761.40 EUR      │
│  Sales 5%           :   2,100.00 EUR  VAT :     105.00 EUR      │
│  Sales 0% (export)  :  41,200.00 EUR  VAT :       0.00 EUR      │
│  Deductible inputs  :                 VAT : -18,442.10 EUR      │
│                                                                  │
│  PVM payable (M+25) :                       12,922.60 EUR       │
└─────────────────────────────────────────────────────────────────┘

Comparison Baltic + Nordic EU regimes

Country	Standard	Reduced	Super-reduced	Zero
Lithuania	21%	9%	5%	0%
Latvia	21%	12%, 5%	—	0%
Estonia	22% (raised 2024)	9%	—	0%
Finland	25.5% (raised Sep 2024)	14%	10%	0%
Sweden	25%	12%	6%	0%
Denmark	25%	—	—	0%
Poland	23%	8%	5%	0%

Adoption — PVM filing and thresholds

Registration threshold: EUR 45,000 turnover over a 12-month rolling window (periodically reviewed, stable since 2018).
Monthly filing mandatory for taxable persons >EUR 200,000 annual turnover. Quarterly between EUR 45,000 and 200,000. Semi-annual for approved small filers.
M+25 deadline — return and payment by the 25th of the month following the period.
VAT gap ~14% in 2024 (CASE Report), continuously decreasing since i.MAS / i.SAF deployment.
Pre-fill via i.APS since 2018 — the PVM return is partially pre-filled from monthly i.SAF registers.

Common pitfalls

Assuming 21% universal. District heating and public transport are at 9%, which impacts any insurer, lessor or building manager. A default 21% setting creates litigation.
Confusing 5% and 9% on books. Books are at 9% (reduced), printed periodicals at 5% (super-reduced since 2021). Categorisation by NACE is non-trivial.
EUR 45K rolling 12-month threshold. The threshold is not calendar-annual but rolling — a one-off overshoot triggers registration within 30 days.
EUR currency since 2015. All historical LTL flows must remain archived (10 years per Mokesčių administravimo įstatymas) but are no longer reported. Fixed conversion 1 EUR = 3.4528 LTL for pre-2015 flows.
EU reverse charge. Intra-EU B2B purchases use reverse charge (self-assessment). Forgetting boxes 32-33 in FR0600 triggers an automatic adjustment via i.SAF.

Foundations

Standards

Flagship messages

Tools