Article 75. Removal of VAT Payers from the Register

Article 75. Removal of VAT Payers from the Register

1.A taxable person of the Republic of Lithuania registered as a VAT payer shall be entitled to the removal from the register of VAT payers where:

1) the total amount of consideration for the goods and services supplied during a year (in the last twelve months) did not come up to the threshold established in Article 71(1) of this Law, or

2) during a year (in the last twelve months) all the consideration was received only from the activities where input and/or import VAT on goods and/or services used is not deductible under the provisions of Article 62 (1) of this Law.

2. A foreign taxable person registered as a VAT payer shall be entitled to the removal from the register of VAT payers where:

1) he terminates supply of goods and/or services within the territory of the country, or

2) during the year (during the last twelve months) only the activity specified in this subparagraphs 1-4 of Article 71 (2) of this Law, was carried out within the territory of the country.

3. At the initiative of the local tax administrator, the following VAT payers may be removed from the register of VAT payers:

1) those who did not file VAT returns during a period of twelve successive months;

2) those who declared in their returns during a period of 12 successive months only the activities where input and/or import VAT on goods and/or services used is not deductible under the provisions of Article 62 (1) of this Law;

3) those who declared in their VAT returns during a period of 12 successive months that they did not receive any income from their economic activities. This provision shall not apply to VAT payers who are creating/building tangible capital assets and who have declared about this to the local tax administrator in accordance with the procedure established by the central tax administrator.

4. Legal persons shall also be removed from the register of VAT payers at the initiative of the local tax administrator if it comes to light that they were instituted not for carrying out the economic activities specified in the articles of association but for the purpose of serving their selfish interests hostile to society and/or for the purpose of serving as a front for some other activity, other than the one specified in the articles of association, or if it comes to light that the VAT payer was established or registered a VAT payer on the basis of lost, missing, stolen or forged documents, or if the person on the basis of whose documents the VAT payer was established or registered, denies in writing that he has ever established or registered the legal person.

5. At the initiative of the local tax administrator VAT payers who have not filed a single VAT return shall be removed from the register of VAT payers where the tax administrator has evidence that during the period for which the VAT payer has not filed a VAT return he supplied goods and/or services or if it comes to light that blank forms of accounting documents acquired in the name of this VAT payer are being used by other persons.

6. At the initiative of the local tax administrator, VAT payers who have not submitted a security or a guarantee document requested by the local tax administrator in accordance with the procedure established in Article 90 (7) of this Law, may be removed forthwith from the register of VAT payers.

Article 76. Procedure of Registration of VAT Payers

VAT payers shall be registered in accordance with the procedure prescribed by the Law on Tax Administration and other legal acts.

Article 77. Obligations of a VAT Payer

A VAT payer must:

1) keep accounts and have in his possession all the documents required under this Law;

2) comply with the requirements of this Law and other legal acts in respect of invoicing supply of goods and services;

3) file VAT returns requested under this Law and, following the procedure and time periods established by this Law, pay into the budget the calculated VAT due and the advance payments of VAT.

Article 78. Accounts

1. VAT payers must keep accounts in accordance with the procedure prescribed by legal acts and in such a manner that it would be possible to determine correctly from them the obligations of the VAT payer relating to the VAT.

2. The accounts for the activities indicated in Article 58 (1) of this Law, and of any other activities must be kept separately.

3. The Government of the Republic of Lithuania or an institution authorised by it shall have the right to establish the requirements for the accounting registers used for calculation of the VAT, their completion, keeping as well as for storing the accounting data in the computer media.

Article 79. Documenting Supply of Goods and Services in the VAT Invoice

1. Supply of goods or services must be documented by a VAT payer in a VAT invoice of a prescribed form, with the exception of cases when supply of goods or services may or must be documented in other accounting documents in accordance with the procedure specified in Article 81 of this Law.

2. Following the procedure and in cases established by the Government of the Republic of Lithuania or an institution authorised by it, one VAT invoice may document goods or services supplied jointly by several VAT payers.

3. VAT invoices shall be issued only by VAT payers.

Article 80. Details to be Specified in the Invoice

1. A VAT invoice must contain all the obligatory details of an accounting document prescribed by the legislation regulating accounting.

2. Unless otherwise provided by this Law, apart from the details referred to in paragraph 1 of this Article, a VAT invoice must contain the following details:

1) the identification number of a supplier of goods or services or the personal number if the supplier is a natural person;

2) the number under which the supplier of goods or services is registered as a VAT payer;

3) the name, identification number of the purchaser/customer of goods or services or the name, surname and the personal number if the purchaser is a natural person;

4) the name of the goods and services supplied;

5) the taxable amount of the goods or services supplied;

6) the VAT rate/s;

7) the VAT amount;

8) other additional details established by the Government of the Republic of Lithuania or an institution authorised by it.

3. If one VAT invoice records, following the procedure established in Article 79 (2) of this Law, the goods and/or services supplied jointly by several VAT payers, instead of the identification number (the personal number) of the supplier of goods and/or services and the number under which the supplier is registered as a VAT payer, the VAT invoice shall specify other details established by the Government of the Republic of Lithuania or an institution authorised by it. If one VAT invoice records goods and/or services supplied jointly to several purchasers, instead of the identification number (the personal number) of the purchaser/customer, the VAT invoice shall specify other details established by the Government of the Republic of Lithuania or an institution authorised by it.

4. In cases indicated in Chapter XII of this Law, the VAT rate and amount shall not be specified.

Article 81. Recording Supply of Goods or Services in Other Accounting Documents. Recording of an Payment on Account

1. A VAT payer shall be entitled not to use a VAT invoice when recording supplyof services or goods supplied on a mass scale which are on the list approved by the Government of the Republic of Lithuania or an institution authorised by it. In such a case an accounting document of a free form having all the requisite details of a VAT invoice shall be used instead of a VAT invoice.

2. In the cases and following the procedure established by the Bank of Lithuania, banks and other credit institutions instead of using VAT invoice shall have the right to use accounting documents of a free form having all the requisite details a VAT invoice.

3. The Government of the Republic of Lithuania or an institution authorised by it shall have the right to determine which documents may be used by a VAT payer recording the supply of goods or services where:

1) supply of goods or services is exempt from VAT under this Law;

2) supply of goods or services is not subject to VAT under this Law;

3) supply of goods or services shall be taxed, under this Law, by applying the zero rate of VAT;

4) goods or services are supplied to natural persons who are not taxable persons.

4. Unless the Government of the Republic of Lithuania or an institution authorised by it establishes otherwise, in those cases where the VAT payer who is processing agricultural products obtains them from agricultural producers, the supply of goods shall be recorded in a receipt of purchase of agricultural products of the prescribed form issued by the purchaser. The receipt of purchase of agricultural products must have all the requisite details of an accounting document as well as any other additional details established by the Government of the Republic of Lithuania or an institution authorised by it.

5. Chapter XII of this Law shall set forth the procedure of documenting supplies of agricultural products and agricultural services by the farmers to whom the compensatory rate of VAT is applied.

6. Chapter XII of this Law shall establish the procedure of documenting sale of goods by auction.

7. Supply of the goods indicated in Articles 5 and 6, supply of the services specified in Article 8, supply of goods and services specified in Article 9 (3), (4) and (5) of this Law, , , as well as payments on acount must be recorded in the documents established by the Government of the Republic of Lithuania or an institution authorised by it.

8. In cases and according to the procedure set forth in legal acts, supply of goods or services shall be recorded by a cash register receipt which must have all the particulars determined by the Government of the Republic of Lithuania or an institution authorised by it. At the request of a purchaser/customer, the VAT payer must also issue a VAT invoice or any other documents serving as invoices, specified in this Article.

Article 82. Requirements for Blank Forms of Documents

A VAT payer must use the blank forms of VAT invoices and documents recording purchase of agricultural products produced and obtained by the VAT payer in accordance with the procedure established by the Government of the Republic of Lithuania or an institution authorised by it unless the Government of the Republic of Lithuania or an institution authorised by it establishes otherwise. If a VAT payer is a foreign taxable person the above requirement shall apply to his subdivision or his fiscal representative.

Article 83. Credit and Debit Notes

1. Where after documenting supply of goods or services, the taxable amount and/or quantity of the goods or services subject to taxation changes, various price reductions are granted, the goods or part thereof are returned, goods or part thereof or services are refused or where the consideration due to be paid by the purchaser/customer changes, the supplier of goods or services must issue to the purchaser/customer a credit note documenting the above changes of the circumstances. By agreement of the parties, return of the goods or refusal of services may be documented not by a credit note issued by the supplier of goods or the supplier of services but by a debit note issued by the purchaser/customer where the purchaser/customer is a VAT payer.

2. Provisions of paragraph 1 of this Article shall not apply where an accounting document recording the supply of goods or services has been issued, in accordance with the provisions of this Law and other legal acts, by the purchaser/customer. In such a case, if circumstances change a credit note shall also be issued only by the purchaser/customer.

3. Any changes recorded in credit or debit notes must be entered in the VAT accounts of both the supplier of goods or services and the purchaser/customer.

4. The procedure for issuing credit and debit notes and the particulars that must be specified in them shall be determined by the Government of the Republic of Lithuania or an institution authorised by it.

Article 84. Tax Period

1. A tax period shall be a calendar month unless otherwise provided in this Article.

2. If all the income of a VAT payer from his economic activities during the preceding calendar year did not exceed LTL 200,000, such a VAT payer shall be entitled to file an application with the tax administrator to regard a calendar half-year as the tax period. The right to file an application with a request to regard a calendar half-year as the tax period shall also be granted to newly established VAT payers who estimate that during the current calendar year the income from their economic activities is not going to exceed the threshold established in this paragraph.

3. If a calendar half-year is chosen as the tax period, the tax period may be changed at the request of a VAT payer but not before the expiry of the calendar half- year.

4. The tax period of a natural person who is a VAT payer shall be a calendar half-year.

5. A legal person or a foreign taxable person VAT payer shall be entitled to apply to the local tax administrator, in accordance with the procedure established by the central tax administrator, with a request to establish a tax period other than a half-year if such a tax period is more convenient for the tax payer owing to the specifics of the financial accounting established by the foreign taxable parent company or a foreign taxable VAT payer. A different tax period shall be fixed subject to the following provisions:

1) it may not be longer than 60 days;

2) the beginning of the first tax period of the financial year and the end of the last tax period of a VAT payer must coincide with the beginning and end of the relevant calendar year.

6. In the cases determined by the Government of the Republic of Lithuania or an institution authorised by it, when it is necessary to ensure performance of tax obligations, including justifiability of carrying over and refund of the excess amount of VAT, the tax administrator shall have the right to establish that the tax period of the VAT payer shall be the period specified in paragraph 1 of this Article even though the VAT payer applied for a different tax period, according to paragraphs 2 and 5 of this Article, and/or a different tax period has been established for him.

Article 85. Interval for Submitting a VAT Return for the Tax Period

1. If a tax period is a calendar month, the VAT return for the tax period must be submitted not later than by the 25th day of the next month.

2. If a tax period is a calendar half-year, the VAT return shall be submitted not later than by the 25th day of the first month of the next half-year.

3. If a tax period is established in accordance with Article 84 (5) of this Law, the VAT return for the tax period must be submitted not later than within 25 days following the end of the period.

Article 86. The VAT Return for the Tax Period

The form of the VAT return for the tax period, the particulars to be stated therein and the procedure of filling it in shall be determined by the central tax administrator.

Article 87. The Annual VAT Return and the Interval for Submitting It

1. If following the end of a calendar year and after the actual indicators have been established, the VAT deductions have to be adjusted following the procedure set forth in Chapter VIII of this Law, the VAT payer must submit, not later than by the 1st day of October of the next calendar year, the annual VAT return in which the amounts adjusting the VAT deduction must be stated.

2. The form of the annual VAT return, the particulars to be stated therein and the procedure of filling it in shall be determined by the central tax administrator.

Article 88. VAT Return of a Person Who Is Being Removed from the Register of the VAT Payers or Entity Which is in Liquidation

1. If a taxable person was removed from the register of the VAT payers either at his own request or at the initiative of the tax administrator, he must submit, within 20 days after his removal, a special VAT return of a person who is being removed from the register of the VAT payers or of an entity in liquidation and declare in it, following the procedure set forth in this Law, all his remaining obligations relating to the calculation and payment of VAT. If a VAT payer is in liquidation he must submit, before the liquidation, a special VAT return of a person who is being removed from the register of the VAT payers or of an entity in liquidation and declare in it, following the procedure set forth in this Law, all his remaining obligations relating to the calculation and payment of VAT.

2. The form of the VAT return of a person who is being removed from the register of the VAT payers or of an entity in liquidation, the particulars to be stated therein and the procedure of filling it , and if the VAT return is submitted by VAT payers in liquidation - the interval for submitting the return, shall be determined by the central tax administrator.

Article 89. Calculation of the Amount of VAT due for the Tax Period

1. When calculating the amount of VAT due for the tax period , the deductible amount of input and/or import VAT shall be subtracted from the amount of output VAT on goods and/or services supplied, calculated during the tax period (with the exception of VAT which, subject to the procedure set forth in this Law, must be withheld and paid by the purchaser/customer of goods and/or services), also from the amount of VAT payable into the budget on the acquired goods and/or services if, under this Law, following the procedure set forth in Chapter XI, the VAT payer is obligated to calculate or to withhold and pay this VAT, as well as from import VAT that is subject to the procedure of inclusion into output VAT established in Article 94 of this Law.