Lithuanian domestic reverse charge on IT equipment

As from 1 August 2019, Lithuanian domestic reverse charge also applies to mobiles, tables and laptops.

This reverse charge is expected to apply on all sales made by established and non-established suppliers in Lithuania. In such cases, the customer will self-account the VAT in its Lithuanian VAT return. The Official Gazette with details about these changes is published in the website of the Ministry of Finance.

The extension of domestic reverse charge mechanism intends to reduce carrousel fraud on those items that are often used by fraudsters due to their small volume and high value. Such extension is exceptionally allowed by the European Commission as a derogation of Article 193 of the VAT Directive. Many other countries implemented a similar system of reverse charge on IT equipment, including Italy, Spain, Germany or Denmark.

Our article on Reverse charge. Possible scenarios, gives a description of the reverse charge mechanism. It also provides the usual scenarios on which this mechanism applies. This article is useful if you want to have a comparative overview of those cases on which reverse charge can apply.