While e-invoicing remains mostly voluntary in Lithuania, the Lithuanian government is making significant changes to improve government e-invoicing systems and promote the widespread adoption of e-invoicing.
Keep reading while we explore the latest e-invoicing updates in Lithuania and the country’s plans for transitioning to e-invoicing. We’ll discuss Lithuania’s e-invoicing requirements and how solutions like Finbite can help businesses adapt to Lithuania’s new e-invoicing legislation.
In this article
Current state of e-invoicing in Lithuania
In Lithuania, e-invoicing is mandatory for transactions within the public sector. While B2B e-invoicing is not mandatory, it’s highly encouraged due to its advantages, such as increased efficiency and invoicing transparency.
Currently, the government is taking more steps to improve the e-invoicing system and promote widespread adoption of e-invoicing.
For example, in July of 2024, Lithuania replaced its e-account system (E. Sąskaita) with a new platform called SABIS. All e-invoices in Lithuana issued to the public sector are now sent through SABIS.
SABIS provides a more user-friendly environment, improves security, and supports a larger number of user log-ins, encouraging Lithuanian businesses to integrate into the European e-invoicing infrastructure.
Different e-invoicing solutions
E-invoice software for machine-readable automation
A machine-readable electronic invoice is an invoice that is in a structured data format, allowing for automatic and electronic processing by e-invoicing software and other systems.
Machine-readable invoices can be processed quickly and efficiently by invoicing software, allowing businesses in Lithuania to automate their invoicing processes, saving time, reducing manual errors, and reducing the administrative burden on accounting teams.
For businesses looking to automate their e-invoicing processes, it’s essential to find software that allows for e-invoicing in a range of formats to meet every business’s unique invoicing needs. Finbite’s e-invoicing software is one of the best options in Lithuania, as it allows users to send and receive e-invoices in any format.
Finbite also lets users set up a digital confirmation circle using machine-readable electronic invoices, allowing for faster payment cycles and improved cash flow management.
PEPPOL e-invoicing
PEPPOL is the most popular network for sending cross-border invoices in the EU. PEPPOL e-invoices are based on the PEPPOL BIS Billing specification, which complies with the EN 16931 standard.
PEPPOL uses access points to connect users to the network. When businesses send their e-invoice to an access point, the access point converts the e-invoice into the PEPPOL format, then sends it through the PEPPOL network to the recipient’s access point. This system is fast, cost-effective, and reduces the risk of fraud.
Since Lithuania has joined the PEPPOL network and adopted the PEPPOL BIS Billing 3.0 for e-invoicing, finding PEPPOL e-invoicing solutions is crucial for Lithuanian businesses.
How e-invoicing works in Lithuania
Lithuania invoice requirements
When sending invoices in Lithuania, invoices should include the following information:
- Invoice date
- Sender information
- Recipient information
- Type of goods or services supplied
- Total amount
When invoicing businesses registered to pay VAT, Lithuania invoice requirements also include tax information such as VAT number, the taxable amount according to value added tax rate, and the tax amount in euros.
The primary formats for e-invoices in Lithuania are the PEPPOL BIS 3.0 and the national XML format. Businesses can submit electronic e-invoices directly through the SABIS website for B2G invoicing or with smart invoicing solutions for B2B invoicing.
Businesses in Lithuania must also store e-invoices for 10 years, which makes digital archiving essential.
Examples of e-invoicing in Lithuania
STEKAS: STEKAS is a Lithuanian company that helps businesses implement accounting and business management systems. STEKAS uses Finbite to streamline invoicing processes for its clients. With Finbite’s e-invoicing solutions, clients can save time, eliminate errors, and optimize their invoicing processes.
UAB DAT: UAB DAT is a Lithuanian company that operates scheduled and charter flights. They use Finbite to efficiently manage purchase e-invoices and save time on e-invoice archiving and document retrieval. According to their chief accountant, Finbite has removed manual work, reduced human errors, and increased productivity.
Future of e-invoicing in Lithuania
In Lithuania, many companies have voluntarily adopted e-invoicing solutions due to the benefits of e-invoicing. But based on the trend towards mandatory e-invoicing in Estonia, Latvia, and throughout Europe, it’s likely that Lithuania will also make B2B e-invoicing mandatory in the future.
Changes in EU legislation will also likely impact e-invoicing in Lithuania. The European Commission has proposed amending the VAT Directive ViDA (VAT in the digital age), to minimize the VAT gap and instances of fraud. One of the key ViDA proposals is to require VAT invoices for transactions between EU companies to be electronic and declared in real-time.
FAQ: Lithuania e-invoicing
What do you need for an invoice in Lithuania?
For B2G transactions in Lithuania, businesses can submit an e-invoice through the SABIS website. To send PEPPOL invoices, businesses can use a certified service provider like Finbite.
There is currently no mandate for B2B invoices in Lithuania. Finbite lets businesses create and send e-invoices in any format, which makes it the perfect solution for Lithuanian businesses that must adapt to different e-invoice standards.
How many countries use e-invoicing?
More than than 80 countries worldwide have implemented e-invoicing mandates in some form and an additional 50 countries plan to impose new or additional mandates.
With EU Directive 2014/55/EU mandating e-invoicing and adoption for public sector entities, all EU countries have taken steps to introduce e-invoicing for public institutions.
How to send a free e-invoice in Lithuania?
Businesses sending e-invoices to public institutions in Lithuania can send a free e-invoice through the government platform SABIS. For B2B e-invoices, Finbite lets users send 5 free e-invoices (incl PEPPOL) per month with the Starter plan.
Who requires e-invoicing in Lithuania?
Currently, only the public sector in Lithuania requires e-invoicing. However, many businesses are also switching to e-invoicing processes due to increased efficiency, cost-effectiveness, and security.
What is the best software for e-invoicing in Lithuania?
Finbite is the best e-invoicing solution in Lithuania. With Finbite, Lithuanian businesses can easily create, send, and manage electronic invoices in any format, making it easy to adapt to Lithuania’s changing invoicing requirements. With features like a digital confirmation circle, businesses can create streamlined systems to approve and pay e-invoices, saving time and reducing manual errors.
Start sending and receiving e-invoices in Lithuania with Finbite
As one of the leading invoicing solutions in the Baltics, Finbite provides reliable e-invoicing that saves time, reduces costs, and eliminates manual errors. In addition, Finbite’s digital archive offers convenient and secure e-invoice storage, allowing businesses to adhere to Lithuanian accounting regulations.
Get started with Finbite today and experience the benefits of e-invoicing.
