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Quarter IV 2016 | Leinonen Lithuania

Dear reader,

Leinonen Lithuania regularly informs about important practical issues in the fields of accounting, taxation and legislation and helps to follow the main changes in this area. If You would like to receive more detailed information how these changes or other laws affect or could affect Your business, we would like to meet You and discuss financial aspects of Your business.

We are ready to share our knowledge and experience with business people, financial specialists and other persons who could be interested in it.

TOP 1 mistake in VAT during 2016

Typical situations, when the supply or transfer of goods from Lithuania to another EU country is subject to VAT taxation in Lithuania

Making analysis of various VAT schemes of our Clients, we have noticed, that Clients do not take into account the negative tax consequences, related to the transferring of various goods from Lithuania to another EU countries.

We would like to remind that the Lithuanian VAT Law and the EU VAT directive states that the transfer of goods by a taxable person forming the part of his business assets to another EU country shall be treated as a supply of goods for consideration.

Due to this we propose to review the questions presented below which may alert the Company about the existing tax risks.

  • Are there situations, when customer from the EU country refused to accept your goods, e.g. on the basis of quality, colour or some other reasons?
  • Do you transfer your own goods (equipment) for business purposes from Lithuania to another EU country, which will not be returned back to Lithuania (e.g. transfer of equipment for production, movable property for the rent, office equipment, etc.)?
  • Do you transfer tools or equipment for construction works, which take place in another EU country?
  • Do you transfer goods to exhibitions, which take place in the EU country where the goods may be sold?
  • Do you transfer the goods for processing to another EU country and after the processing, the goods will be sold in that country?

If you have answered positively at least to one question, then the transfer of goods from Lithuania to the EU country may be taxed with VAT in Lithuania. 

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Tax incentives

We would like to remind about the existing possibilities to use tax incentives established in the Corporate Income Tax law (hereinafter – the Law). Please find below three commonly used tax incentives.

Other news

Incentives for companies providing services to pursue business in Free Economic Zones

From 1 January 2017 Article 58 of the Lithuanian Corporate Income Tax (hereinafter – CIT) law is going to be changed which may encourage new companies to establish their business in Free Economic Zones (hereinafter – FEZ).

The companies which are established in FEZ and which fulfil certain conditions may use the tax incentive - first 6 tax years the companies do not pay CIT, the other 10 tax years the companies can apply CIT rate reduced by 50%.

New EU Regulation on services, related to immovable property


From 1 January 2017 new European Union (hereinafter - EU) Regulation 1042/2013, which amended the provisions of Regulation 282/2011 came into force.

The Regulation contains more precise definition of the concept of the immovable property and provides guidelines, which VAT taxpayers should follow, defining the place of supply.

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We invite You to read other news in Leinonen website

The enactment of new Labour Code is postponed

Amendments to VAT and Excise Duties Laws

Information concerning business trips of employees


New procedure of payments to the guarantee fund

New Code of Administrative Offences

Decision of The Supreme Administrative Court of Lithuania regarding the right to input VAT deduction to bankrupting companies

Every client is special to us and we try to help everyone in every way we can.

Having almost 20 years of experience in Lithuania we create and assist in managing accounting and tax policies for our clients who are business start-ups, companies with great history or even those listed on International stock exchange.

Are You interested to find out how we can help You? Please contact:


Head of Advisory Unit

tel. +370 656 51728



Senior Tax Advisor 

tel. +370 618 79158


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Leinonen Group is a Finnish-owned private accounting and advisory company, which was established already in 1989. Leinonen Group helps companies enter and succeed in challenging business environments by offering reliable accounting, payroll management, advisory, administration, and audit services. The deep local expertise and personal service approach, combined with wide international presence, is our strength. Our 13 offices can be found in the main cities of 11 countries – Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Poland, Bulgaria, Hungary, Russia, and Ukraine.

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Leinonen Lithuania

Vilnius | Kaunas

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