Lithuania has proposed excluding certain occasional immovable property, financial, insurance and reinsurance transactions from the EUR 45,000 VAT registration threshold calculation from 1 January 2027.
Lithuania has proposed amendments to the rules used to determine whether a taxable person reaches the EUR 45,000 VAT registration threshold through Draft Law amending Article 71 of Law No. IX-751.
This draft legislation on VAT would revise the transactions excluded when calculating the threshold. The proposal specifically updates point 4 of paragraph 22 of Article 71.
Under the draft, consideration from the supply of immovable property by nature would be excluded where the transaction is occasional, and the taxable person does not normally engage in such activities. The same treatment would apply to the provision of financial services referred to in Article 28 of this Law, as well as insurance and reinsurance services. Insurance and reinsurance services would be newly included among the specified exclusions.
The proposed rules would cover one-off transactions carried out outside a taxable person’s normal activities.
If approved, the amendments would enter into force on 1 January 2027.
