Lithuania Revises VAT Registration Threshold Rules for Incidental Property Leasing

• A revised Lithuanian draft would exclude consideration from incidental leasing of immovable property when calculating the mandatory VAT registration threshold.
• The exclusion would also cover incidental supplies of immovable property, specified financial services, and insurance and reinsurance services.
• The exclusion would apply only where the transaction is incidental and the taxable person does not normally conduct that type of activity. If adopted, the amendments would apply from 1 January 2027.

Extended article

Lithuania has revised proposed amendments concerning the turnover taken into account when determining whether a person must register for VAT.

The revised draft adds the leasing of immovable property to the transactions that may be disregarded when calculating the mandatory registration threshold.

The exclusion would cover consideration from:

• supplies or leasing of immovable property;
• financial services listed in Article 28 of the Lithuanian VAT Law; and
• insurance and reinsurance services.

The exclusion is not intended to apply automatically to every property, financial or insurance transaction. The transaction must be incidental, and the taxable person must not normally carry out that type of activity.

The standard domestic small-business VAT threshold is currently EUR 45,000 according to the Lithuanian Ministry of Finance. The revised proposal therefore affects whether occasional transactions push a person above that threshold. [finmin.lrv.lt]

The revised draft is dated 23 September 2026. If adopted, the amendments would apply from 1 January 2027.

External links

• Read the revised Lithuanian draft amendments
• Review Lithuania’s VAT registration rules [finmin.lrv.lt]