Fines will increase for VAT evasion

The Seimas of Lithuania has adopted amendments to the Law on Value Added Tax (VAT) stipulating that fines for VAT evasion will increase starting 1 May 2023.

Based on the new provisions if a VAT payer unjustifiably reduces the calculated amount of VAT payable or does not pay VAT at all, a fine will increase by up to 20-100% of the amount of unpaid taxes. Additionally, just like now, the payer will also have to transfer the unpaid VAT to the state budget.