Invoice in English for a foreign company: Lithuanian rules

You can invoice a foreign company from Lithuania in two languages: Lithuanian, with the English equivalent beside each label.

The Lithuanian Law on VAT, the Law on Financial Accounting and the Rules approved by Government Resolution No. 780 do not set the language of an invoice, but Article 4 of the Law on the State Language says that companies operating in Lithuania keep their accounting documents in the state language.

The texts we checked do not say directly whether an English-only invoice is enough, so the example below is bilingual.

Bilingual invoice example: Lithuanian and English

All the details below are invented. The example assumes that the seller is a VAT payer and that its accountant has confirmed that the buyer must calculate and pay the VAT on this service. You cannot conclude from the example that the same holds for you.

The document is a VAT invoice (PVM sąskaita faktūra).

Why the example looks this way:

• No VAT rate and no VAT amount. Article 80(8) of the Law on VAT: where the buyer must calculate and pay the VAT under Article 95 of the law or equivalent provisions of other Member States, the taxable amount may be given instead of the information in points 9 to 12 of paragraph 1 (unit price and discounts, taxable amount by rate, the rate and the VAT amount). This does not apply where the buyer issues the invoice itself. The sum here: 40 hours × EUR 50.00 = EUR 2,000.00.
• The date of supply is a separate line. Article 80(1)(8) requires it when it differs from the date of issue.
• Legal entity codes. Article 7(1)(1) and (6) of the Law on Financial Accounting list, among the required information of an accounting document, the name and legal entity code of the entity that carried out the transaction and of the recipient. Ask an accountant which registration number of a foreign buyer belongs on your invoice.
• The English is an addition. The required information is written in Lithuanian, as the law names it. The English is there so that the buyer understands every line.

You can prepare an ordinary invoice or a VAT invoice with rates of 21, 12, 5 and 0% in the free invoice tool. The tool does not cover reverse charge, so it does not fit an invoice like this example.

Can an invoice in Lithuania be issued in English only?

The legal texts we checked give no direct answer. This is what they say.

• Law on VAT, Law on Financial Accounting and the Rules approved by Resolution No. 780. They list the information an invoice must contain. They do not say in which language.
• Law on the State Language, Article 4. In our translation: "All institutions, establishments, companies and organisations operating in the Republic of Lithuania keep their records and their accounting, reporting, financial and technical documents in the state language."
• Law on the State Language, Article 9. Transactions with natural and legal persons of foreign states are concluded in the state language and in another language acceptable to both parties. The article speaks of transactions, not of invoices.
• VAT Directive, Article 248a. For control purposes, Member States may require a translation of invoices into their official languages from certain taxable persons or in certain cases; this concerns invoices for supplies made in their territory and invoices received by taxable persons established there. They may not impose a general requirement to translate all invoices. How and when the Lithuanian tax authority asks for a translation was not checked for this guide.

No sentence in these texts directly permits an English-only invoice, and none forbids adding English beside the Lithuanian. On a bilingual invoice the Lithuanian text stays and the buyer understands each line.

If you want to invoice in English only, talk to an accountant first. Article 4 names institutions, establishments, companies and organisations; self-employed individuals working under an individual activity certificate are not mentioned separately, so put that question to the accountant too.

Lithuanian invoice terms in English

The English terms in the first list come from the English text of Article 226 of the VAT Directive, which lists what an invoice must show. The Lithuanian terms are those of Article 80 of the Law on VAT.

The terms in the second list are not set by any legal text. They are customary business equivalents, as are the other English labels in the example (seller, buyer, description, date of supply, total payable, due date, issued by).

Each required item is explained in VAT invoice in Lithuania: required information. If this is your first invoice, start with invoices in Lithuania: requirements and how to issue one.

The buyer's VAT identification number on an invoice to a foreign company

Article 80(1)(4) of the Law on VAT requires a VAT invoice to show the buyer's VAT payer code or VAT identification number "which the buyer stated when acquiring the goods or services" (our translation). The buyer gives you the number and you enter it.

The number matters beyond the invoice. For example, under Article 49(1) the 0% rate applies to goods supplied to a VAT payer registered in another Member State who has given the supplier the VAT identification number issued there, and transported to another Member State. Whether these and the other conditions of that article are met is for an accountant to assess.

What does the "Reverse charge" mention mean?

The law gives the mention in Lithuanian. In the English text of Article 226 point 11a of the Directive it is "Reverse charge". A bilingual invoice can carry both.

The point says what to write when the duty falls on the buyer. When it does is set by other provisions of the Law on VAT and of other Member States. Leave that decision to an accountant.

Currency and the deadline for issuing the invoice

Article 3(5) of the Law on Financial Accounting: data in accounting documents are expressed in euros and, where needed, in both euros and a foreign currency. Article 80(1)(12) of the Law on VAT requires the VAT amount in euros.

Where the taxable amount is not in euros, Article 15(21) has it converted at the exchange rate determined under the Law on Financial Accounting at the moment of taxation (imports of goods follow a separate rule in paragraph 20).

Under Article 79(2)(1) a VAT invoice must be issued immediately after the supply.

Point 2 sets another deadline, the 15th day of the month after the month of the supply, in two cases: goods supplied to another Member State under Chapter VI of the law or essentially equivalent provisions of another Member State, and services on which the buyer must calculate and pay the VAT under Article 95 or equivalent provisions of other Member States.

Which deadline applies to you depends on the same assessment by an accountant.

The date by which the buyer pays is a separate matter: see invoice payment terms in Lithuania.

Invoicing a foreign company if you are not a VAT payer

Point 3 of the Rules approved by Resolution No. 780 says that economic entities that are not VAT payers, except natural persons, must document supplies with invoices (sąskaita faktūra). Its required information is set by Article 7 of the Law on Financial Accounting and points 5 and 6 of the Rules: see invoice without VAT in Lithuania.

If you work under an individual activity certificate (individualios veiklos pažyma), see self-employed invoice in Lithuania.

What to do next

1. Ask the buyer for its exact name, address, registration number and VAT identification number.
2. Settle with an accountant whether you charge VAT, whether the 0% rate applies, or whether the buyer must calculate and pay the VAT; and, if you are not a VAT payer, whether a duty to register arises.
3. Prepare the invoice in Lithuanian and add the English equivalent from the glossary beside each label.

You can fill in an ordinary invoice or a VAT invoice in the invoice tool: it is free, needs no registration, keeps the draft in your browser and shows which required information is missing. It is not accounting software and does not cover reverse charge, margin schemes or credit and debit notes.