Self-Service Cancellation of Submitted Tax Returns Introduced in Lithuania's EDS

The State Tax Inspectorate (VMI) has introduced new functionality in the Electronic Declaration System (EDS), allowing taxpayers to initiate the cancellation of previously submitted tax returns directly within the portal. This update eliminates the need to draft and submit separate free-form requests to the tax administrator when a report was submitted in error.

According to VMI, self-service cancellation is permitted exclusively in three specific scenarios:
1. The tax return was submitted without any legal obligation to do so.
2. The declaration was submitted due to a clear administrative error, such as selecting an incorrect tax period (wrong month or year).
3. There is an objective impossibility to amend the existing document.

VMI emphasizes a critical rule: if a submitted return merely contains arithmetic or factual data errors, cancellation is strictly prohibited. In such cases, the taxpayer must submit an amended return following standard procedures. Under statutory rules, the most recently submitted version is considered legally valid.

To cancel a declaration via EDS, users follow these steps:
1. Navigate to "Deklaravimas" (Declaration) → "Pateikti dokumentai ir formos" (Submitted documents and forms) → "Pateiktos formos" (Submitted forms).
2. Select the relevant form code.
3. Click the "Anuliuoti" (Cancel) button.
4. State the reason for cancellation, provide a brief explanatory comment, and submit the request.

Upon submission, the return receives the intermediate status "Anuliuojama" (Cancelling). The process then resolves in one of two ways:
- Automatic processing: If no manual review is required, the status updates directly to "Dokumento duomenys anuliuoti" (Document data cancelled).
- Manual review: If an evaluation by a tax officer is required, the status changes only after a decision is made. If the inspector approves the request, the data is cancelled. If rejected, the declaration reverts to its original valid status, and repeated cancellation via EDS is blocked.

VMI has not published an exhaustive list specifying which forms are processed automatically versus manually, nor is there a fixed statutory deadline for inspector review.

Specific statutory exceptions apply where the direct cancellation button cannot be used:
- Advance Corporate Income Tax return (FR0430): Cannot be cancelled via the EDS button. To cancel this form, taxpayers must submit a free-form inquiry via "Mano VMI" (under Paslaugos → Paklausimai).
- Forms FR0608 (VAT statement for non-VAT payers), PVM101 (small business scheme VAT return), and FR0512 (application to allocate personal income tax to support): Data in these forms cannot be cancelled under any circumstances; they can only be amended within the deadlines established by law.