Set up Lithuanian taxes in your Shopify store

This article covers:

• Tax settings
  • Display product prices including VAT
  • Display product prices excluding VAT
• Tax rates in Lithuania and the EU
• Selling goods to customers in Lithuania
  • My business is not VAT-registered
  • My business is VAT-registered
• Selling goods to customers in other EU member states
  • Selling as a micro-business
  • Surpassing the micro-business threshold
  • Selling with a country-specific registration
• Selling digital services
  • The VAT rules when selling digital services
• Selling goods outside the EU
• Where to find further information
• Invoices

If you want to charge VAT to some customers and not to others, you can configure how VAT is displayed in your product prices in your Shopify store.

If you sell to consumers (B2C), display your product prices with VAT included.

Under Lithuanian and EU consumer protection rules, prices shown to consumers must include VAT, and any additional delivery charges must be shown before checkout.

To display your product prices with VAT included:

1. In your Shopify admin, go to Settings → Taxes and duties.
2. In the Additional configuration section, turn on Include sales tax in product price and shipping rate.
3. Click Save to apply the changes.

Optionally, you can enable dynamic tax inclusion. This Shopify feature automatically includes or excludes VAT based on the customer's region and adjusts the tax rate accordingly.

To activate dynamic tax inclusion:

1. In your Shopify admin, go to Markets and click the market you want to configure.
2. In the Inherited section, click the + icon next to Taxes and duties.
3. Under Tax display, select Dynamic tax display, then click Done.
4. Click Save to apply the changes.

If your store sells exclusively to businesses (B2B), you can display your product prices without VAT.

To display your product prices excluding VAT:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Additional configuration section, turn off Include sales tax in product price and shipping rate.
3. Click Save to apply the changes.

To disable dynamic tax inclusion in a market and show VAT as a separate line at checkout:

1. In your Shopify admin, go to the Markets page and click the market you want to configure.
2. In the Inherited section, click the + icon next to Taxes and duties.
3. Under Tax display, select Show as line item, then click Done.
4. Click Save to apply the changes.

The standard VAT rate in Lithuania is 21% and applies to most taxable goods and services.

Since January 1, 2026, reduced VAT rates of 12% (for example, accommodation, passenger transport, and admission to cultural events) and 5% (for example, books and certain medicines) apply to specific categories.

A 0% VAT rate applies to specific supplies, including exports and intra-Community supplies.

If your business is registered under the standard VAT regime, you charge Lithuanian VAT on taxable domestic sales of goods, whether your customers are businesses (B2B) or consumers (B2C).

If your business isn't VAT-registered and qualifies for the small business exemption, you don't charge VAT and can't include VAT on your invoices.

Since May 1, 2025, businesses established in Lithuania must register for VAT once their domestic taxable turnover exceeds €45,000 in the current or previous calendar year.

You can also register voluntarily before reaching this threshold.

You must also register for VAT if the total value of goods purchased from other EU member states exceeds €14,000 (excluding VAT) in the current or previous calendar year.

This requirement applies even if your taxable turnover is below €45,000.

If your business is registered under the standard VAT regime in Lithuania, you charge Lithuanian VAT on all taxable sales of goods to customers in Lithuania.

For B2C sales in other countries, the rules depend on where your customer is located.

If you sell goods to VAT-registered businesses (B2B) in other EU member states, these sales are zero-rated for Lithuanian VAT, as long as your customer has a valid EU VAT number and the goods are transported to another member state.

You must keep evidence of the transport, include the required VAT information on your invoice, and report these sales in your VAT return and your intra-Community sales statement (Form FR0564). The customer accounts for the VAT in their own country.

If you sell goods to consumers (B2C) in other EU member states, you must charge VAT. The VAT rate depends on whether you exceed the €10,000 EU threshold.

If your cross-border B2C sales to other EU countries (distance sales of goods plus telecommunications, broadcasting, and electronic services) stay at or below €10,000 (excluding VAT) in both the current and the previous calendar year, you can apply Lithuanian VAT to those sales.

This rule only applies if your business is established only in Lithuania and your goods are shipped from Lithuania.

No application or approval is needed—simply set up your tax settings in Shopify.

You can also choose to apply the customer's country rate from the first euro, but that choice binds you for two calendar years.

To charge Lithuanian VAT on eligible cross-border B2C sales:

1. In your Shopify admin, go to Settings → Taxes and duties.
2. In the Tax regions section, click European Union.
3. In the Collect VAT cross-border section, click Collect VAT.
4. In the Collect across the EU window, select Collect using your home country registration.
5. Select your Country of registration and enter your VAT number. Leave this field blank if you've applied for a VAT number but don't have one yet; you can add it later.
6. Click Collect VAT to save your changes.

If your combined cross-border B2C sales exceed €10,000 (excluding VAT) in the current or the previous calendar year, you must charge the VAT rate of the destination country.

As a result, the VAT rate you charge will vary depending on where your customers are located.

If you exceed the threshold by selling to multiple EU countries, registering for VAT in each member state can become administratively complex.

Instead, you can use the One-Stop Shop (OSS) Union scheme. With OSS, you charge the VAT rate of the destination country while reporting and paying VAT on your eligible cross-border B2C sales through a single OSS return in Lithuania.

OSS doesn't replace your domestic VAT return or local registrations where they're required.

To set up the OSS scheme in Shopify:

1. In your Shopify admin, go to Settings → Taxes and duties.
2. In the Tax regions section, click European Union.
3. In the Collect VAT cross-border section, click Collect VAT.
4. In the Collect across the EU window, select Collect using a One-Stop Shop (OSS) registration.
5. Select your Country of OSS registration and enter your VAT number. Leave this field blank if you've applied for a VAT number but don't have one yet; you can add it later.
6. Click Collect VAT to save your changes.

Now, your customers' shipping country VAT rates automatically apply to your eligible cross-border B2C sales.

You need a local VAT registration in another EU country if you make taxable sales there that OSS doesn't cover, for example, if you store stock in that country and ship to customers from there. In that case, you can no longer use the €10,000 threshold.

If this applies to you, Shopify allows you to add a local VAT registration number for another country, so it automatically applies the correct VAT rates based on your registrations.

To add a local VAT registration number:

1. In your Shopify admin, go to Settings → Taxes and duties.
2. In the Tax regions section, click European Union.
3. In the Collect VAT in an EU country section, click Collect in another location if you already have a registration.
4. Select the Country and enter your VAT number. Leave this field blank if you've applied for a VAT number but don't have one yet. You can update it later.
5. Click Collect VAT to save your changes.

The country must be part of one of your shipping zones before you can add it as a tax region. If you can’t select it, create a shipping zone first:

1. In your Shopify admin, go to Settings → Shipping and delivery.
2. In the Shipping profiles section, click the profile you want to add the zone to (for example, General profile).
3. In the Shipping zones section, click + Zone.
4. Name the zone, add the country (or countries) you’re VAT-registered in using the search bar, and click Done.
5. Add shipping rates to make the zone available.
6. Click Save to apply the changes.

Special VAT rules apply when selling digital services from Lithuania to customers in other EU countries.

Before applying these rules, it's important to understand what qualifies as a digital service.

Digital services include radio and television broadcasting services, telecommunications services, and electronically supplied services, such as online magazines, music, films, games, and automated online courses.

Not every service delivered over the internet qualifies. For example, a live online class taught by a person may be treated differently. Likewise, selling physical goods through a Shopify store isn't a supply of digital services—these are sales of goods and follow the standard VAT rules described above.

If you supply digital services from Lithuania to consumers in other EU countries, those sales count toward the same €10,000 EU threshold as your distance sales of goods.

As long as your combined cross-border B2C sales stay at or below €10,000 in both the current and previous calendar year, you can keep applying Lithuanian VAT.

Once you exceed the threshold, you charge the VAT rate of each customer's country.

If you sell digital services to businesses with a valid EU VAT number (B2B), the business customer accounts for the VAT in their own country under the reverse charge.

Registering for VAT in multiple countries can be time-consuming. Instead, you can use the One-Stop Shop (OSS) Union scheme to declare and pay the VAT due on your eligible cross-border B2C sales of goods and digital services in Lithuania through a single online portal.

If you sell goods from Lithuania to customers outside the EU, whether B2B or B2C, these exports are zero-rated for Lithuanian VAT.

As long as the goods actually leave the EU and you keep the required export documentation, such as customs export records.

This means that you don't charge Lithuanian VAT on these invoices. Your customer's country may charge its own import VAT and duties.

For guidance tailored to your specific business situation, consider consulting a tax professional or accountant who specializes in VAT and ecommerce.

You can find a local tax advisor by searching for VAT and ecommerce specialists in your area.

Once you have configured your tax rates correctly in your store, Sufio will automatically create compliant invoices with an accurate breakdown of the VAT charged.

Invoices can be created in multiple languages and include all required details to comply with EU invoicing requirements.

Providing invoices with the correct tax breakdown helps ensure accurate bookkeeping and supports your tax reporting obligations.

If you sell to businesses (B2B), Sufio invoices include the required information, including the VAT registration number for your Shopify store and your business.

You can find a local tax advisor by searching for VAT and ecommerce specialists in your area.