VAT Reverse Charge: 🇪🇸 Spain to 🇱🇹 Lithuania

Yes. When a VAT-registered business in Spain supplies B2B services to a VAT-registered business in Lithuania, the reverse charge mechanism applies under Article 196 of EU VAT Directive 2006/112/EC. The Spain supplier invoices at 0% VAT, and the Lithuania customer self-accounts for VAT at their local rate of 21%.

If the customer is VAT-registered, put 0% VAT on the invoice. You must include the customer's Lithuania VAT number and the note: "VAT reverse charge — Article 196, Directive 2006/112/EC". Do not charge Spain VAT (21%) on cross-border B2B service invoices.

The standard VAT rate in Lithuania is 21%. When reverse charge applies, the Lithuania customer declares 21% VAT in their local VAT return and simultaneously deducts it as input VAT — so the net cash effect is zero for a fully VAT-registered business.

Yes. You must report cross-border B2B services in your EC Sales List (ESL), also known as VIES or Recapitulative Statement. Report these as services (not goods) using the customer's Lithuania VAT number. Filing frequency depends on Spain's local rules — typically monthly or quarterly.

If the customer in Lithuania does not have a VAT number, reverse charge does not apply. For B2C supplies or non-registered businesses, different rules apply. For most services, you would charge Spain VAT (21%). For digital/electronically supplied services, Lithuania VAT (21%) may apply via the EU One Stop Shop (OSS) scheme.

Verify the customer's VAT number using the EU VIES system at ec.europa.eu/taxation_customs/vies before issuing a zero-rated invoice. Lithuania VAT numbers start with the prefix "LT". Keep a record of the VIES confirmation for your audit trail.

Reverse charge under Article 196 applies to most B2B services where the place of supply is the customer's country. Some services have special rules — for example, services related to immovable property are taxed where the property is located, and short-term vehicle hire has specific rules. For standard professional, consulting, digital, and software services between Spain and Lithuania, reverse charge applies.

Your invoice must include: (1) Your Spain VAT number, (2) The customer's Lithuania VAT number, (3) 0% VAT / VAT amount: 0.00, and (4) The legal reference: "Reverse charge — Article 196, Council Directive 2006/112/EC". Some suppliers also add the Lithuania equivalent note in the local language.