Lithuania VAT Act Amendments from 2027: E-Commerce Thresholds, IOSS, and Call-Off Stock Rules

The Parliament of the Republic of Lithuania has adopted Law No. XV-1036 amending the Law on Value Added Tax (VAT Act), transposing key provisions of EU Directive 2025/516 ("VAT in the Digital Age" / ViDA). The State Tax Inspectorate (VMI) outlined the administrative application of these statutory updates in its clarification letter No. RTD-75 on August 6, 2026. The primary provisions take effect on January 1, 2027.

A fundamental revision applies to cross-border distance selling within the EU. Under the amended Article 13-2, Paragraph 1, Point 2 of the VAT Act, the calculation of the EUR 10,000 threshold—below which sales may remain subject to domestic VAT—will consider exclusively goods dispatched directly from the company's Member State of establishment. Supplies fulfilled from foreign fulfillment centers or warehouses across other EU Member States (such as Amazon FBA infrastructure) will be excluded from the EUR 10,000 threshold calculation and will trigger destination-based VAT obligations regardless of turnover volume.

The amendments also specify that taxable persons registered under the Union One-Stop Shop (OSS) scheme (Chapter XII, Section 6 of the VAT Act) are legally deemed to have exercised their option to tax distance sales in the Member State of consumption. Consequently, entities enrolled in the OSS scheme cannot apply the EUR 10,000 exemption even if their EU-wide cross-border sales fall below this monetary threshold.

Significant restrictions are introduced for businesses registered under the Small Enterprise Scheme (SVS). Under the amended legal framework, entities applying the SVS regime in Lithuania are explicitly prohibited from utilizing the Import One-Stop Shop (IOSS) procedure. Businesses importing low-value consignments will have to utilize standard import customs declarations or register as standard VAT payers to access the IOSS scheme.

Furthermore, the amendments initiate the formal sunset of call-off stock arrangements under Article 4-2 of the VAT Act. The simplification rules will apply solely to goods dispatched on or before June 30, 2028, with all related transfers of ownership to be finalized no later than June 30, 2029. Effective July 1, 2029, Article 4-2 is officially repealed.

Starting January 1, 2027, the "deemed supplier" status for electronic interfaces and online marketplaces will also be extended. Platforms facilitating sales on behalf of non-EU sellers will be treated as the supplier not only for B2C transactions but also for sales to non-taxable legal entities and specified B2B buyers. The updated technical reporting formats and subordinate regulations from the Ministry of Finance and VMI are scheduled to be published ahead of the 2027 enforcement date.