Lithuania introduces a VAT refund for foreign customers.

The procedure for VAT refunds for foreign customers has been established in all EU countries. During the years, the established rules have been changed and upgraded. That happened also in Lithuania. More precisely, in accordance with the council directives of the European Union, which establish only the electronic method of submitting requests for refund of value-added tax changes, the rules introduced in Regulation No. 339, "Regarding the requests of foreign taxable persons to refund the value-added tax paid by them in the Republic of Lithuania" (new wording approved by Order No. VA-97 of December 20, 2023).

According to the above-mentioned order, the revised rules for filling out the form FR0445 for the request for a refund of value-added tax by a taxable person located outside the territory of the European Union regulate that a foreign taxable person can submit a request for a refund of VAT paid in the Republic of Lithuania only electronically. Other editorial changes were also made in the terms of changing the request for refund for a taxable person located outside the territory of the European Union.

The FR0446 form outlines the decision process for refunding value-added tax to a taxable entity situated outside the European Union's jurisdiction. It includes specific rules detailing the description of goods and services mentioned in the refund request submitted by a taxable person from another member state of the European Union. Furthermore, the guidelines provide clarity on the content of the refund request and the electronic submission of application appendices.

Additionally, the order set to take effect in 2024 introduces Model FR1084 and FR1085 forms. The FR1084 form pertains to the decision for reimbursing value-added tax to a taxable person in another European Union member state. On the other hand, the FR1085 form addresses the decision to refund recalculated value-added tax to a taxable person in another European Union member state, specifically after adjusting the value-added tax deduction percentage.

This comprehensive set of forms and regulations ensures a structured and standardized process for handling value-added tax refunds for taxable entities both within and outside the European Union