Exporting to Lithuania

Located at a crossroads between Northern, Central and Eastern Europe, Lithuania is politically stable and has enjoyed continuous economic growth (IMF, 2019). Its economy is small but diverse, with established manufacturing and agricultural sectors and growing technology and service sectors.

Ease of doing business

Lithuania is ranked 14th out of 190 countries in the World Bank’s ease of doing business rankings (World Bank, 2018). It is economically and politically stable, has a strategic location in Europe and its workforce is multilingual and well educated. Lithuania is a member of NATO, the European Union and the Schengen Area.

Strong UK trade links

Trade between the UK and Lithuania has grown steadily over the past few years and totalled £1.8 billion in the year to March 2019 (ONS, 2019). UK exports to Lithuania amounted to £576 million in 2018, of which £364 million (63%) were goods and £212 million (37%) were services (ONS, 2019).

Ease of doing business

11th

out of 190 countries (World Bank, 2019)

Currency

Euro

Business language

Lithuanian, English

You may need a translator

GDP per capita

$19,740

UK is £42,558 (IMF, 2018)

Economic growth

2.9%

(IMF, 2018)

Time zone

GMT +3

Opportunities for exporters

There are opportunities for UK companies across a broad range of industries. Our trade advisers in the Lithuania have identified particular opportunities for UK businesses in the following sectors.

Doing business in Lithuania

Preparing to export

Taxation

If you’re planning to export to Lithuania, make sure you’re aware of the tax rates and regulations that may apply to your products. Information on taxes in Lithuania is available from the State Tax Inspectorate.

VAT

If you’re registered for VAT in the UK, it may be possible to zero-rate the goods you export to Lithuania, provided certain conditions are met.

The standard VAT rate in Lithuania is 21%.

Corporate tax

The standard corporate tax rate in Lithuania is 15%.

Standards and labelling

Products and packaging should meet EU standards. Labelling should be in Lithuanian. The Lithuanian Standards Board (website in Lithuanian) is responsible for standards.

Operating in Lithuania

Operating in Lithuania

Lithuanian legislation, though aligned with EU requirements, can be complex. For help finding tax and legal advisers before entering into agreements, speak to our team in Lithuania.

Intellectual property

As a first step, we advise you to speak to an intellectual property (IP) lawyer if you think you need patent protection when exporting.

Trademarks, designs, patents and copyright are the principal forms of IP protection available to companies and individuals. More information about patents in Lithuania is available from the State Patent Bureau.

Payment terms

Lithuanian law requires that invoice should be paid within 30 calendar days of the receipt of the invoice or other equivalent document, unless the buyer and supplier agree on other payment conditions. The payment terms in Lithuania are defined by the Law on the Prevention of Delays in Payments made under Commercial Contracts of the Republic of Lithuania.

Use of a distributor

In most cases, you’ll need to use a local representative to do business in Lithuania, usually a distributor. It’s relatively easy to appoint a distributor and there are no legal barriers to agents and distributors operating for a UK company within Lithuania.

Next steps

DIT can advise you on doing business abroad, and help put you in touch with other people who can help such as lawyers and distributors.