The Lithuanian tax authority has issued guidance on VAT law changes transposing Council Directive (EU) 2025/516, with key provisions applying from 1 January 2027 and select sections delayed until 1 July 2029.
Lithuania’s State Tax Inspectorate has issued guidance on 11 August 2026 confirming amendments to the Law on Value Added Tax (No. IX-751), adopted as Law No. XV-1036 on 18 June 2026, to transpose Council Directive (EU) 2025/516, known as VAT in the Digital Age (ViDA).
The amendments are intended to modernise VAT procedures in line with the digital economy and evolving business models. Most provisions will take effect from 1 January 2027, while certain sections — Articles 1, 3, 5 to 7, 9 and 10 — will apply only from 1 July 2029.
Among the key changes, online marketplaces facilitating sales by non-EU established businesses will, from 1 January 2027, face expanded “deemed supplier” obligations. This status will apply not only to business-to-consumer sales but also to supplies made to certain EU taxable persons or non-taxable legal entities whose acquisitions are not subject to VAT.
The One-Stop Shop (OSS) EU scheme will also be broadened. From 1 January 2027 until 30 June 2028, taxable persons may optionally use the scheme for supplies of natural gas, electricity, heating and cooling energy. From 1 July 2028, a newly expanded EU scheme will apply permanently to these supplies. The non-EU scheme, meanwhile, will explicitly cover all services supplied by non-EU established taxable persons to non-taxable persons within the EU.
Special VAT procedures for call-off stock will be phased out, applying only to goods transported until 30 June 2028 before ending completely on 30 June 2029.
The calculation of the EUR 10,000 annual threshold for intra-Community distance selling has also been refined. It will count only distance sales dispatched from the EU member state where the taxable person is established, excluding sales fulfilled from stock held in other EU member states. Businesses registered under the OSS scheme will be deemed to have chosen to place their supply location under the directive’s rules, even where they do not exceed the EUR 10,000 threshold.
Separately, taxpayers using Lithuania’s small business scheme will be explicitly barred from using the Import One-Stop Shop (IOSS) system.
