Lithuania Approves Draft Law on VAT Registration Procedure for Small Businesses

The Lithuanian Ministry of Finance Feb. 5 announced the approval of a draft law to align with amendments to the EU VAT directive regarding small businesses. The announcement includes measures to: 1) allow small businesses from other EU countries to avoid VAT registration in Lithuania if their annual turnover is below the VAT registration threshold of 45,000 euros (US$46,483) in Lithuania, and the threshold of 100,000 euros (US$103,284) in the EU; and 2) enable Lithuanian small businesses to avoid VAT registration in other EU countries if they don’t exceed the annual turnover threshold for that country or the EU. [Lithuania, ...