The European Commission (EC) has launched infringement proceedings against Lithuania and seven other European Union (EU) Member States for failing to transpose a Community directive on a special value added tax (VAT) scheme for small businesses in time, reports „Verslo žinios“.

Lithuania, Bulgaria, Cyprus, Greece, Ireland, Ireland, Portugal, Romania, Spain and Lithuania have received official warning letters.

The directive allows EU small businesses to opt out of registering for value added tax (VAT) in other Community countries where they operate.

The VAT exemption scheme would apply to businesses whose annual turnover in the territory of a country does not exceed the threshold for VAT registration set in that country and the annual turnover threshold in the EU of €100,000.

ELTA recalls that last week the Government approved amendments to the Law on Value Added Tax with the provisions of the Directive. The amendments to the law still need to be approved by the Parliament. 

EU Member States had until 31 December 2024 to transpose the EU Council Directive on a special VAT scheme for small businesses into national law.