In Lithuania, the legal framework for electronic invoicing is a combination of EU directives and national legislation. Lithuania has integrated relevant EU directives on electronic invoicing into its domestic laws and established specific regulations for electronic invoicing. Below are the key legal foundations for electronic invoicing in Lithuania:
1. EU VAT Directive (2006/112/EC)
The EU VAT Directive (2006/112/EC) forms the fundamental legal basis for electronic invoicing across all EU member states, including Lithuania. Key provisions of this directive concerning electronic invoicing include:
- Article 232 of the directive allows member states to recognize electronic invoices as legally valid if specific conditions are met, particularly the authenticity of origin and integrity of content.
- These requirements can be met through methods such as electronic signatures, EDI (Electronic Data Interchange), or other technologies that ensure data security and immutability.
2. Lithuanian VAT Act (PVM įstatymas)
The Lithuanian VAT Act (PVM įstatymas) regulates the tax requirements for electronic invoicing. It aligns closely with EU provisions and establishes that electronic invoices are as valid as paper invoices if they meet the requirements for authenticity and integrity.
- Articles 2 and 93 of the VAT Act confirm that electronic invoicing is permissible, provided the same standards as paper invoices are met.
- Electronic invoices must contain the same tax-relevant information as paper invoices, including:
- Invoice number,
- Name and address of the issuer and recipient,
- Description of goods or services,
- Amount and VAT,
- Invoice date.
3. Regulation on Electronic Invoicing in the Public Sector (Elektroninių sąskaitų faktūrų išrašymo ir jų pateikimo tvarka)
This regulation governs the exchange of electronic invoices with public administration in Lithuania. Since 2019, all companies supplying the public sector in Lithuania are required to submit electronic invoices in the Peppol format:
- The Peppol infrastructure provides an EU-wide standard for the electronic exchange of business documents, including invoices, between companies and public institutions.
- As of January 1, 2019, all suppliers working with the Lithuanian public sector must submit their invoices in the Peppol format.
- This ensures a standardized and automated exchange of invoices, improving administrative efficiency and transparency in the public sector.
4. Electronic Signatures and Their Importance
In Lithuania, as in other EU states, electronic signatures are recognized as a way to ensure the authenticity and integrity of electronic invoices. The signature can be either a Qualified Electronic Signature (QES) or an Advanced Electronic Signature (AES):
- Qualified Electronic Signatures (QES) and Advanced Electronic Signatures (AES) are legally binding under the EU eIDAS Regulation.
- QES holds the same legal status as a handwritten signature and can be used to verify invoices.
The use of electronic signatures ensures that the invoice issuer is uniquely identified and that the invoice content remains unchanged after issuance.
5. Archiving Electronic Invoices
The obligation to archive electronic invoices in Lithuania aligns with general EU requirements. Businesses must retain their electronic invoices for a minimum of 10 years. This applies to both electronic and paper invoices:
- Electronic invoices must remain readable and their authenticity and integrity must be preserved throughout the retention period.
- Archiving must ensure invoices are accessible for tax audits by Lithuanian tax authorities when required.
6. Peppol and the Lithuanian eInvoicing Platform
Businesses working with the Lithuanian public sector must use the Peppol standard for submitting electronic invoices. Peppol is a Europe-wide standard promoted by the EU Directive 2014/55/EU for electronic invoicing in the public sector.
- Companies must submit invoices via a Peppol-compliant platform. These platforms are integrated with national and European systems for electronic invoicing, enabling secure invoice exchanges between businesses and public institutions.
7. Other Relevant Regulations
- The Law on Electronic Communications (Elektroninių komunikacijų įstatymas) governs the use of electronic communication, including electronic invoicing and signatures, in Lithuania.
- The State Tax Inspectorate of Lithuania (Valstybinė mokesčių inspekcija, VMI) provides guidelines for businesses on the use of electronic invoicing and compliance with tax requirements.
Summary of Key Legal Foundations in Lithuania:
- EU VAT Directive (2006/112/EC): Provides the legal basis for recognizing electronic invoices when authenticity and integrity are ensured.
- Lithuanian VAT Act (PVM įstatymas): Requires electronic invoices to meet the same standards as paper invoices.
- Regulation on Electronic Invoicing in the Public Sector: Mandates electronic invoicing in the Peppol standard for transactions with the public sector.
- Peppol Standard: Required for the electronic exchange of invoices with public administration.
- Electronic Signatures: Can be used to ensure the authenticity and integrity of invoices.
- Archiving Obligation: Electronic invoices must be retained for at least 10 years.
Conclusion:
In Lithuania, electronic invoicing is fully recognized in both the private and public sectors, governed by the EU VAT Directive and the Lithuanian VAT Act. For businesses working with public administration, electronic invoicing in the Peppol standard is mandatory. Electronic invoices must be securely and legibly archived, and businesses must ensure the authenticity and integrity of their invoices through electronic signatures or other suitable methods.
