The currently valid VAT law determines that a person must register as a VAT payer if he has a sales income of more than 45,000 euros in the last 12 months. Meanwhile, from 1st of January 2025 small businesses (UAB, MB, IĮ or persons working under an individual activity certificate) will have to become VAT payers when they exceed the sales income limit not 45,000 euros, but 55,000 euros. The sales income limit is increased by 10,000 euros.
Also, the VAT registration limit will be calculated in a fundamentally different way – the principle of the amount of income of the last 12 months is replaced by the principle of the amount of income of the calendar year. According to the new procedure, a person will not have the obligation to register as a VAT payer if his income from sales in Lithuania in the current calendar year does not exceed 55,000 euros. If a person exceeds this limit of the amount of sales income in some month of the calendar year, then until the end of the current calendar year and at least the next two calendar years, he will have to charge VAT on the sales of goods and services. So, after becoming a VAT payer, a person will need to be a VAT payer for two years.