Accounting Services in Lithuania

Accounting plays a crucial role in business operations by enabling the maintenance of records and providing a comprehensive overview of a company’s financial position and economic performance.

All foreign-owned companies and their subsidiaries operating in Lithuania are subject to the jurisdiction of Lithuanian accounting laws.

To promote comparability and comprehensibility of company results, it is essential to have accounting standards established by the government.

Accounting service of companies without VAT number

from 150 EUR / month

Accounting service of companies with VAT number

from 290 EUR / month

Assistance in registering VAT number

from 200 EUR / month

Annual report for a Lithuanian company

from 250 EUR

Individual consultation

from 300 EUR

Winding up a Lithuanian Company

from 850 EUR

Additional services (PDF)

Taxes in Lithuania

more info

ADVANTAGES

Accounting in Lithuania is governed by the following legislative acts:

The Accounting Law of Lithuania governs the principles and procedures for establishing and maintaining an accounting system, documenting financial transactions, storing records, and making necessary amendments.
The acknowledged and commonly used rules for financial reporting are international accounting standards and commercial accounting standards. Depending on the type of business activity, either Business Accounting Standards (BAS) or International Accounting Standards (IAS) should be used.
The creation of financial statements for companies is governed by law in Lithuania. The law also governs audits, reports on government payments, and combined annual reports.

The chief executive of the company should be in charge of approving accounting policies. The nature of the firm' operations, the current business climate, and the observance of accounting standards are all taken into account during this procedure. The policies of the accountant should include a variety of topics, including the overall accounting policies of the company as well as the creation and presentation of financial statements.
Supporting documentation, such as invoices, checks, accounting records, and expenditure reports, is mandatory to substantiate all accounting records.
Accounting documents must be kept for a minimum of ten years. Annual inventories of both assets and liabilities are required to ensure correct compilation of financial accounts. This inventory is typically completed by the end of the financial year.

ESSENTIAL CRITERIA FOR ORGANIZING ACCOUNTING

As per the regulations of the Lithuanian Register, every company is obligated to prepare and submit its annual report within a timeframe of 5 months from the end of its financial year.
The commencement of a financial year is not fixed to a specific month.
The responsibility of handling accounting tasks cannot be assigned to the company's head.
The recording of all business transactions necessitates the utilization of accounting software programs.
Documenting every business transaction is crucial.
The financial status, performance, and cash flows of a company should be presented in a dependable, impartial, and comparable manner.
Accounting records must be preserved for at least ten years.

ANNUAL FINANCIAL REPORT

In Lithuania, it is mandatory for all companies, irrespective of their operational activities during the financial year, to submit annual reports.
After the conclusion of the financial year, the annual report must be officially endorsed at the Annual General Meeting.
The financial year must span 12 consecutive months, typically commencing on January 1st. Nevertheless, it has the flexibility to commence at any point within the calendar year.
Following the general meeting, the annual report must be submitted to the Lithuanian Centre of Registers.

The business closes its accounting records and creates financial statements at the end of 12 consecutive months. Although the financial year can begin in any month of the calendar year, Lithuanian companies typically coordinate their financial year with the year.

Within six months of the end of its financial year, every Lithuanian firm is required to submit its annual report to the Lithuanian Business Register. The annual report should be written in Lithuanian and presented using the Euro, unless specifically indicated otherwise.

Regardless of whether they had any business activity throughout the year, all firms registered in Lithuania are required to produce an annual report. The annual report must be submitted by June 30 of the year after your company’s fiscal year ends on December 31. In other words, the deadline will still be June 30 if the financial year ends on December 31.

The annual report should be prepared once all accounting procedures have been finalized.

The annual report is expected to encompass the following:

What must be included in the annual report, depending on the company type:

Very small business

On the final day of the financial year, at least two of the following conditions must be met:

Net turnover 700, 000 EUR
Value of the assets 350, 000 EUR
Number of employees, 10 persons

A very small business has the option to create an abbreviated annual report in line with the Accounting Law, which contains a condensed balance sheet and a summarized profit/loss statement. Additionally, the micro-enterprise has the option of producing either a condensed or comprehensive annual report.

Small business

On the final day of the financial year, at least two of the following conditions must be met:

Net turnover 8 000 000 EUR
Value of the assets 4 000 000 EUR
Number of employees 50 persons

Small business financial reports are created in compliance with business accounting standards. The balance sheet and the profit/loss statement, along with explanations, are its two main reports.

Medium-sized business

On the final day of the financial year, at least two of the following conditions must be met:

Net turnover 40 000 000 EUR
Value of the assets 20 000 000 EUR
Number of employees 250 persons

Large-sized enterprise

If at least two indicators meet the benchmarks specified for medium-sized businesses on the last day of the financial year.

The annual report is created in accordance with Lithuanian law governing company financial statements. The balance sheet, profit/loss statement, cash flow statement, statement of changes in equity, and explanatory notes are some of its various parts.

According to Lithuanian law, companies that surpass at least two of the following indicators are required to have their annual reports audited:

Net turnover 3, 500, 000 EUR
Value of the assets 1, 800, 000 EUR
Number of employees, 50 persons

The Legal Entities Register publishes both the annual financial reports and the auditor’s report. It is important to note that information obtained during the audit process is to be treated as confidential, and certified auditors bear liability for any breaches of their responsibilities.

SOCIAL INDICATORS IN LITHUANIA IN 2022

Evaluation parameters

Numbers

Minimum monthly wage (MMA)

730 EUR

Minimum hourly wage

4,47 EUR

The basic amount of 2022 applied in the calculation of the salaries of public politicians, judges, civil servants and civil servants.

181 EUR

Unemployment rate in 2022

5,2%

Number of unemployed in 2022

79,3 thousands

Minimum unemployment benefit for social insurance

169,87 EUR

Maximum social insurance benefit for unemployment

Could not be over 58.18 per cent. National average wage.

Average social insurance benefit per month in 2022.

458,2 EUR

Basic State Social Insurance Pension

225,84 EUR

Public pension base

65,29 EUR

Basic State Social Insurance Pension for Widows

32 EUR

Average old-age pension per month in 2022

483,25 EUR

Average old-age pension per month with compulsory social security in 2022.

512,70 EUR

Evaluation parameters

Numbers

Value of pension unit of account

4,94

Basic pension index for 2022

1.0847

2022 coefficient of additional indexation of the individual social pension

1.0424

Index rate of supplementary social insurance pensions

1,05

Coefficient of additional indexation of state pensions of officers and soldiers and judges

1,05

Government-supported income

147 EUR

Basic social security benefit

46 EUR

Salpa Pension Base

173 EUR

Targeted remuneration base

138 EUR

National average wage applied to insured persons in 2022 to calculate the contribution base state social insurance

1504.1

15-64 years of age employment rate in 2022.

75,2%

male employment rate

75,2%

women employment rate

75,3%

Average wages in the national economy (excluding companies) in 2022.

gross

chain

1780,5 EUR

1116,2 EUR

Magnitude of minimal consumers

first person

second person

267 EUR

214 EUR

Evaluation parameters

Number

needs of cooperatively residents

for the third and subsequent cohabitants

187 EUR

DERIKTA LT, MB offers accounting services to Lithuanian companies, irrespective of whether they possess VAT numbers. Our extensive expertise across various business sectors enables us to provide comprehensive services, including VAT number registration in Lithuania, issuance of EORI numbers, preparation of annual reports, and assistance in obtaining a financial license. Our team of specialists is dedicated to supporting you throughout these processes.

FREQUENTLY ASKED QUESTIONS

Is it necessary for all businesses to have their accounting records in Lithuania?
All Lithuanian businesses are required to file reports to the Tax and Board, as well as the Social Insurance ministries. It is essential to select a qualified accountant to ensure effective maintenance of the company’s accounting.

Can I personally handle the accounting for my Lithuanian company?
No, it is not permissible for the head of the company to handle accounting duties. Every Lithuanian company must have an accountant responsible for preparing and submitting the necessary financial reports to the government. Accounting entries can be managed by an in-house accountant, the company itself, or by engaging the services of an external accounting professional.

What permissions are necessary to provide an accountant with access to the Tax and Customs Board of Lithuania?
You can use a power of attorney/application to provide us access to your accounting records. We can give you a template for the power of attorney that you must fill out, sign, and deliver to the Tax and Customs Board after your company is registered.

Are Lithuanian source documents required to be in a specific language?
Accountants in Lithuania can accept documents in various languages. However, depending on the nature of the source documents, you may be contacted for further clarification or translation if needed. It’s important to note that during the preparation of financial statements, Lithuania utilizes the euro as its official currency.

Would you kindly let me know how to send paperwork to the Lithuanian accountant?
You must email the accountant the company’s documentation in order to deliver them. Once you’ve contracted with our accounting services, you can accomplish this.

When is the last day to send paperwork to the Lithuanian accountant?
By the fifth day of the current month, the customer must provide the statements for the previous month. The bank statement must match up with all incoming and leaving invoices. A description of the invoice as well as partner information should be included on all incoming and outgoing bills.

What is the recommended method for a Lithuanian company to submit a bank statement?
Lithuanian companies can submit their bank statements in either PDF or XML formats. It is important to provide a clear and legible statement that covers the period from the 1st to the last day of the month. The bank statement should be included in the submission letter or accompanying documentation.

What is the deadline for submitting monthly reports in Lithuania?
Employee declarations must be submitted by employees no later than the 15th of each month. VAT declarations, on the other hand, should be submitted by the 25th of every month. It is important to adhere to these deadlines to ensure timely and accurate reporting.

Is submitting an annual report required in Lithuania every year?
It is, in fact. Every firm with a registration in Lithuania is required to file an annual report, even if there was no business activity during the fiscal year. All firms doing business in Lithuania are required to abide by this regulation.

What deadline has Lithuanian businesses set for submitting their annual reports?
Within five months of the end of the financial year, Lithuanian businesses are required to file their annual reports. Furthermore, the annual report must be submitted and verified by shareholders, according to the Lithuanian Center of Registers. To fulfill the reporting requirements outlined by the authorities, it is essential to follow these deadlines.

What factors influence the accounting costs for Lithuanian companies?
Several factors can impact accounting costs for Lithuanian companies. These include the availability of VAT, the company’s specific obligations, the number of employees, and the volume of documents to be processed. These variables play a role in determining the overall accounting expenses for a company.

How much do accounting services cost in Lithuania?
The cost of accounting services in Lithuania varies depending on the company’s VAT status. For companies without a VAT number, accounting services typically start from 100 EUR per month. On the other hand, for companies with a VAT number, accounting services generally begin at 150 EUR per month. It’s important to note that specific pricing may vary depending on the complexity and specific requirements of the company.

Is it possible for a Lithuanian company to request accounting services for past financial periods?
Yes, a Lithuanian company has the option to avail accounting services for previous financial periods. The pricing for such services will vary based on the number of transactions involved during the specific period. It is important to provide the accountant with all the necessary documents and statements in their entirety to ensure accurate and comprehensive accounting services.

What is the significance of maintaining accounting records for my company?
Keeping accounting records is not only a legal requirement but also serves various purposes. In Lithuania, companies are obligated to provide reports to several authorities, including the Tax Inspectorate, Social Security Fund, Department of Statistics, Centre of Registers, Customs Department, and migration offices. Compliance with these reporting obligations is essential to avoid issues with the authorities.

What types of companies need accounting reports?
In Lithuania, accounting reports must be submitted by every company. The company owners alone cannot be responsible for managing accounting tasks. Instead, each and every Lithuanian business must hire an accountant to help with compiling the necessary reports and presenting them to the appropriate state agencies. The accountant will also provide advice regarding the necessary tax filing requirements.

Which companies need accounting reports?
Accounting reports are mandatory for all types of companies. In Lithuania, it is a requirement for Lithuanian companies to submit these reports. The responsibility of handling accounting tasks cannot be assumed by the company heads themselves. Instead, each Lithuanian company must engage the services of an accountant who will aid in preparing the essential reports and submitting them to the appropriate state authorities.

What are Lithuanian annual reports?
Lithuanian annual reports are comprehensive documents that offer insights into a company’s performance for its shareholders and other interested parties. These reports are essential in providing crucial information about the company’s financial standing. They typically include mandatory components such as profit and loss statements and balance sheets, which present a clear overview of the company’s financial health and performance over the course of the year.

Is it mandatory for every company to submit annual reports?
Indeed, every company registered in Lithuania is obligated to submit an annual report, regardless of whether the company remained inactive throughout the entire financial year.

What is the deadline for submitting Lithuanian annual reports?
The deadline for submitting Lithuanian annual reports is within five months after the conclusion of the financial year. Shareholders are required to verify and submit the annual report to the Lithuanian Centre of Registers by this deadline.

Does my company need a VAT number?
A VAT number is necessary for my company due to the following circumstances:
a) When the sales volume surpasses 45,000 EUR within a 12-month period.
b) When the purchase volume within the European Union exceeds 14,000 EUR.

Is tax registration required for companies with a turnover under EUR 45,000?
A shareholder’s (participant’s) profits and purchases made within the European Union during the previous 12 months must be added up if they possess 50% or more of the shares of another company. Additionally, the shareholder’s individual income is taken into account for inclusion if they engage in activities as a natural person.

Why is it necessary to conduct an audit for my company?
An audit of your company becomes necessary when at least two of the following indicators are met, leading to the requirement for an annual report audit:

Net turnover of 3,500,000 EUR or more.
Value of assets totaling 1,800,000 EUR or higher.
Employment of at least 50 individuals.

Who is responsible for accounting in Lithuania?
Either an internal accountant employed by the company, a specialized accounting firm, or a person offering accounting services is in charge of making sure that accounting entries are accurate. It is uncommon for the company’s head to handle accounting issues. Accountants are extremely important in helping Lithuanian businesses create and submit government reports.

What factors influence the cost of accounting services for a Lithuanian company?
The accounting price is significantly influenced by the availability of VAT. Additionally, the price can change depending on the amount of papers processed, the number of employees, and the company’s total responsibilities.

CONTACT US

DERIKTA LT, MB

Registration number: 305883144
Registration Date: 24-08-2021.
Address: Giruliu G. 5, Vilnius, 12124, Lithuania.

PHONE

We are happy to answer any questions you may have during our office hours, 9AM–5PM.
[EASTERN EUROPEAN SUMMER TIME]

+370 6279 1138

We try to answer all e-mail enquiries within 1 hour between 9AM–5PM [EASTERN EUROPEAN SUMMER TIME]

info@derikta.com