Lithuania Signs IMF Agreement to Reduce VAT Gap and Curb Shadow Economy

• Lithuania signed an agreement with the IMF for technical assistance to reduce VAT gap and shadow economy.
• The IMF will provide expert analysis and recommendations to improve tax collection and administration, focusing on VAT.
• The project includes analyzing VAT gap causes and developing recommendations, including automated information systems.
• The first interim report is expected in spring 2026, the second in autumn 2026.
• The goal is to use IMF recommendations for the 2027 budget to increase revenue, tax fairness, and public trust.

Source: finmin.lrv.lt

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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