Lithuania Updates Input VAT Deduction Rules: Eligibility, Exclusions, and Guidance for All Taxpayers

• Lithuania’s State Tax Inspectorate (VMI) updated its guidance on input VAT deduction, clarifying eligibility, exclusions, and rules for domestic and foreign taxpayers.
• Registered VAT payers can generally deduct input VAT, but certain groups (e.g., those registered only for intra-EU acquisitions, special e-services, or small business schemes) are excluded.
• Non-registered persons exceeding the VAT threshold can recover VAT by filing a specific return; foreign entities can claim deductions for taxable transactions in Lithuania.
• The guidance covers self-assessed VAT, reverse charge, capital contributions, asset transfers, and intra-EU acquisitions, and allows taxpayers to waive deduction rights for future VAT management.
• The update aligns Lithuanian VAT practice with European Court of Justice rulings, emphasizing the fundamental and immediate right to deduction.

Source: regfollower.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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