New Head of the Lithuanian State Tax Inspectorate Outlines Strategic Priorities

On July 28, 2026, Dr. Martynas Endrijaitis assumed the position of Head of the State Tax Inspectorate (VMI), succeeding Edita Janušienė after her two consecutive terms. The new head has outlined his strategic priorities for the upcoming five-year term, introducing significant operational changes that will affect Lithuanian businesses and accounting professionals.

VMI will focus on four main strategic directions: reducing the shadow economy and the Value Added Tax (VAT) gap, developing electronic services, simplifying tax declarations, and providing targeted consulting. For example, the Fintech sector can expect a more accommodating regulatory environment, with VMI prioritizing advisory support and guidance over strict penalization.

In terms of tax control, VMI will identify and update a list of three to five high-risk sectors annually. Currently, the most closely monitored areas include trade, construction, tourism, and manufacturing. To increase the efficiency of targeted inspections by approximately 20 percent, the tax authority will increasingly leverage artificial intelligence. AI tools will be utilized to identify low-value-adding companies for audit selection. Furthermore, VMI plans to increase its scrutiny of centralized accounting firms, transfer pricing mechanisms, and the valuation of benefits in kind.

A major long-term technological shift involves the transition to mandatory B2B e-invoicing. In alignment with the European Union's "VAT in the Digital Age" (ViDA) initiative, Lithuania plans to implement a system by 2030 where transaction data is transmitted to VMI in real time. This advancement is expected to eventually phase out the need for standard VAT returns.

To further reduce the administrative burden, VMI aims to fully automate the declaration process. The tax authority plans to auto-fill and submit preliminary real estate, personal income, and public figures' asset declarations. Taxpayers will simply need to review the pre-filled information and make any necessary adjustments.