VMI’s "One-Stop-Shop" Principle: Changes to Fines and Sanctions Administration Taking Effect in 2026

Starting July 1, 2026, significant amendments to the Law on Tax Administration will take effect in Lithuania, introducing a centralized system for managing state-owed financial obligations. The State Tax Inspectorate (VMI) is adopting a "one-stop-shop" approach, taking over the administration not only of taxes and administrative fines but also other mandatory payments owed to the state.

What is changing for Lithuanian businesses and residents?

Until now, various fines and sanctions were administered by different institutions, which often caused confusion regarding payments and debt tracking. Following the reform, VMI will assume the administration of:
• Economic monetary sanctions;
• Procedural fines;
• Court-awarded sums to the state (including stamp duties and litigation costs);
• Criminal fines imposed by courts.

All information regarding these obligations will be conveniently accessible and payable in one place—the "Mano VMI" portal, to which data from other state institutions will be transmitted.

New Debt Recovery Procedure: How to Avoid Bailiff Fees

A major advantage of this reform is a far more favorable and cost-effective debt recovery process for those who inadvertently miss a payment deadline. After notifying the debtor and providing an opportunity for voluntary payment, VMI will first attempt to cover the debt using available tax overpayments.

If no overpayments exist, the funds will be deducted from bank accounts via the Funds Restriction Information System (PLAIS). This automated deduction process will cost the debtor minimally—incurring only the PLAIS maintenance and standard bank transfer fees, which total around 2 euros.

VMI will only forward cases to bailiffs (antstoliai) under exceptional circumstances, such as:
• When there are insufficient funds in the individual’s or company's bank accounts;
• When the person has no bank accounts but possesses registered assets or income;
• When bailiffs are already executing other debt recoveries against the same entity.
This process will allow businesses and residents to avoid disproportionately high execution costs previously incurred when cases were handed over to bailiffs.

Important Considerations for Accountants

For accounting professionals, it is crucial to note the incoming changes to payment codes and the transitional rules. When handling accounting tasks from July 1, 2026, obligations must be clearly separated:

1. Fines and sanctions imposed and effective before June 30, 2026, will continue to be administered under the old rules and must be paid using the old payment codes.
2. New obligations will require new payment codes. For instance, code 1001 will be designated for economic sanctions, while code 2222 will be used for court-imposed fines and litigation costs.

Business executives and accountants are highly advised to regularly review their "Mano VMI" accounts. Maintaining sufficient funds in corporate bank accounts is also recommended to allow for seamless PLAIS deductions in case of unexpected fines, thereby completely avoiding bailiff involvement.