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A business licence is a document confirming that a person has paid a fixed-rate income tax (irrespective of their income) and is authorised to carry out certain activities. The amount of income tax is set by local authorities; you can use the business licence calculator to work out how much a business licence would cost for a specific activity. It is important to note that under a business licence, you may only carry out certain types of self-employed activities (classification of economic activities). To check whether your planned activity is permitted under a business certificate, you need to know the code from the Classification of Economic Activities (EVRK), which you can find here or by calling the Lithuanian Department of Statistics. Information on whether your planned activity is permitted under a business certificate, based on the EVRK code, will be provided by the State Tax Inspectorate on tel. 1882. To apply for a business certificate, you must contact the State Tax Inspectorate (VMI) in your place of residence or apply online via the Mano VMI portal. A business certificate may be issued for the period requested by the individual, but for no longer than 1 calendar year and no shorter than 5 days, with the exception of trade business certificates (trade business certificates may be issued for 1 or several days, or for a longer period, but may not exceed one calendar year). Information on the issue, renewal or cancellation of a business certificate can be found here. Once you have obtained a business licence, keeping accounts for your activities is extremely straightforward. Individuals who do not use a cash register to record their business income must keep an income and expenditure ledger. If a customer so requests, it is mandatory to issue a sales receipt. You can find more detailed information on the accounting procedures in the accounting rules for residents who have obtained a business certificate. Business activities may only be carried out after obtaining a business certificate if the resident is not required to register and is not registered as a VAT payer. Residents holding a trading business certificate may, during a calendar year, sell goods worth up to 4,500 euros to legal entities not engaged in trading activities and to natural persons engaged in trading activities, with the exception specified in Resolution No. 1797 of the Government of the Republic of Lithuania (as amended by Resolution No. 1146 of 16 November 2016): the sale of cars, motorbikes, mopeds, agricultural products and foodstuffs to another natural person engaged in commercial activities. A business certificate for services and manufacturing grants the right to provide services and sell goods of one’s own production to residents (including residents who have obtained trading business certificates and those who have registered as self-employed), as well as to sell goods of one’s own production and provide services (excluding the letting of residential premises) to legal entities, provided that the income derived from the sale of goods produced by the holder and the provision of services to legal entities, as specified in the business certificate, does not exceed 4,500 euros per tax period. A business certificate is similar to a certificate of self-employment; to find out the differences and similarities between these forms, click here. Main taxes: Personal income tax (PIT) is a fixed rate and depends on the chosen activity The compulsory health insurance (PSD) rate is 6.98 per cent of the minimum monthly wage (MMA). The PSD contribution is calculated on the basis of the MMA in force during the month for which the contribution is paid. The amount of the contribution remains unchanged regardless of the validity period of the business certificate held during that month. The State Social Insurance (VSD) rate is 8.72 per cent of the minimum monthly wage (€52.93) or 10.52 per cent of the minimum monthly wage (€63.86), if the person participates in a pension savings scheme, paying 2.1 per cent or 11.72 per cent of the minimum monthly wage (€71.14), if the person participates in a pension savings scheme, paying 3 per cent), provided the business certificate is valid for a full month, from the first to the last day of that month. If the business licence is valid for longer or shorter than a month, social security contributions are calculated in proportion to the period of validity of the business licence. The value added tax (VAT) rate is 21 per cent
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