E-Invoicing in Lithuania: Compliance with Lithuanian regulations

by | Mar 13, 2024 | E-invoicing

Discover everything you need to know about e-invoicing in Lithuania, including B2G regulations, B2B adoption, and the eSaskaita platform. Optimize your business for the digital future!

Lithuania is actively embracing digital transformation, and e-invoicing is at the forefront. This blog post dives into the current state of e-invoicing in Lithuania, guiding businesses through the various regulations and highlighting the benefits of adopting this technology.

Harmonizing e-invoicing rules to close the VAT loophole across the EU is one of the key challenges of an increasingly digital EU. Directive 2014/55/EU regulates e-invoicing in public procurement and aims to reduce trade barriers resulting from different national legal requirements and technical standards for e-invoicing. Each EU member state has developed its own implementation of the law by adapting the e-invoicing model to its own legal framework.

Currently, e-invoicing is mandatory for public procurement and its use in commercial transactions is underway but not yet widespread. The European Commission has launched a public consultation on this issue on January 20, 2022.

In recent months, many countries around the world have announced new mandates or changes to existing mandates. These countries include Belgium, Croatia, Germany, Romania, Spain, Greece, Israel, Saudi Arabia, Singapore and Malaysia. Lithuania has introduced its first e-invoicing regulaitons already in 2017.

In addition to eInvoicing initiatives, Lithuania has also developed electronic tax compliance. In Lithuania, the reporting of tax and accounting information is mandatory through the i.MAS system, which includes I.SAF, I.VAZ and I.SAFT declarations:

  • VAZ: Monthly report on issued bills of lading and other goods transport documents.
  • SAF: Monthly report of information on issued and received invoices
  • SAF-T: electronic tax audit file, which must be presented at the request of the tax authority during an audit.
  • In addition, the State Treasury Department of the Ministry of Finance of the Republic of Lithuania can electronically receive all relevant information on e-invoices submitted to the contracting entities through the eSaskaita platform. In addition, the Public Procurement Office and the Central Purchasing Organization electronically receive information on the execution of procurement contracts and the submission and payment of the e-invoice (Source: European Commission).

State of E-Invoicing in Lithuania

Mandatory B2G: Since July 2017, e-invoicing has been mandatory for all business-to-government (B2G) transactions in Lithuania. This helps combat tax fraud and streamlines the process for tax authorities.

Voluntary B2B: While not mandatory for business-to-business (B2B) transactions, e-invoicing is gaining traction due to its numerous advantages, including faster processing, reduced errors, and improved tax compliance.

Centralized Platform: The Lithuanian government established eSaskaita, a centralized platform for e-invoicing information. This platform integrates with the Peppol network, enabling seamless international transactions.

The scope of the Digital Reporting Requirements includes all transactions (no value threshold; sales and purchases; B2B, B2G and B2C; domestic, intra-EU and extra-EU transactions). Data must be submitted using the XML format, through direct entry into the tax authority’s portal, by uploading the XML file or through a web service.

B2G E-Invoicing in Lithuania

Mandatory for All Suppliers: All businesses supplying goods or services to public authorities must use e-invoicing and comply with specific e-invoicing standards.

Electronic Signatures: E-signatures are required for all B2G e-invoices to ensure legal validity and authenticity.

Technical Requirements: The State Tax Inspectorate defines specific e-invoicing rules and technical requirements for B2G transactions.

B2B E-Invoicing in Lithuania

Voluntary Adoption: B2B e-invoicing remains voluntary, allowing businesses flexibility in choosing their approach.

Growing Popularity: Despite not being mandatory, B2B e-invoicing is becoming increasingly popular due to its efficiency and cost-saving benefits. Businesses can choose from various e-invoicing solutions and accounting and invoicing software providers to implement e-invoicing seamlessly.

Standardized Formats: Lithuania utilizes the PEPPOL BIS Billing 3.0 format for e-invoices, facilitating smooth communication across different platforms using Peppol access point providers.

Looking Ahead

E-invoicing is becoming increasingly important in both B2B and B2G transactions across Europe. While it was previously voluntary, regulations are changing quickly. Today, e-invoicing could be legally required, depending on your location and business partners.

Benefits of E-Invoicing

  • Reduced administrative burden: Eliminate manual data entry and streamline invoicing processes.
  • Improved cash flow: Faster invoice processing and earlier payments from customers.
  • Minimized errors: Accurate and consistent invoice data eliminates errors in manual entry.
  • Enhanced security and compliance: Secure electronic documents meet legal requirements and tax regulations.
  • Gain a competitive edge: Improve efficiency, customer satisfaction, and user experience.

Stay Compliant and Efficient

Whether you need to meet e-invoicing requirements in Lithuania or other countries, consider an international e-invoicing provider. Solutions by SPS Commerce help over 150 companies worldwide with secure and compliant electronic invoicing solutions.

Aleksandra Vovchenko
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