Lithuania has built one of Europe’s most comprehensive digital tax reporting systems through its i.MAS (Intelligent Tax Administration System) platform. Administered by the State Tax Inspectorate (VMI), i.MAS goes beyond standard SAF-T by combining three interconnected modules: i.SAF for invoice data, i.VAZ for transport documents, and i.SAF-T for full accounting records. Together, these modules give Lithuanian tax authorities detailed visibility into business transactions, goods movements, and financial records, a level of coverage that few other European countries have achieved.
Key requirement: All VAT-registered businesses in Lithuania, including foreign entities, must submit i.SAF invoice reports monthly by the 20th of the following month. Even months with no invoices require a zero report.
The Three Modules of i.MAS
i.SAF - Invoice Register
i.SAF is the XML ledger of all sales and purchase invoices (form FR0600). Every VAT-registered entity must file it monthly by the 20th of the month following the transaction period. The requirement applies to all businesses regardless of size or place of establishment, making it one of the broadest invoice reporting obligations in Europe.
- •Scope: All issued and received VAT invoices, including credit notes and debit notes.
- •Zero reports: Even if no invoices were issued or received, a zero report must still be submitted.
- •Foreign entities: All foreign businesses registered for VAT in Lithuania must comply with i.SAF, with no exemptions.
Full i.MAS requirements are published by the State Tax Inspectorate (VMI).
i.VAZ - Transport and Consignment Documents
i.VAZ requires businesses to electronically report the movement of goods within Lithuanian territory before transportation begins. The obligation applies when goods are loaded and transported by road within Lithuania, when both the sender and recipient are engaged in economic activities, and when there is a commercial relationship between the parties.
This pre-notification requirement allows tax authorities to monitor physical goods flows in real time, complementing the financial data captured by i.SAF and i.SAF-T.
i.SAF-T - Full Accounting Data (On Demand)
i.SAF-T is the on-demand component of the i.MAS system. It contains comprehensive accounting data including general ledger entries, accounts receivable and payable, inventory records, and fixed assets. Unlike the monthly i.SAF obligation, the i.SAF-T file is submitted only when requested by the VMI, typically during a tax audit or investigation.
- •Response time: Businesses must submit the i.SAF-T file within the deadline set by the VMI in the audit request, typically 10 to 30 days.
- •Turnover threshold: The full i.SAF-T obligation applies to resident Lithuanian companies with annual turnover above €300,000.
- •Foreign entities: Foreign businesses that are merely VAT-registered (without a permanent establishment) are outside the i.SAF-T scope, though they must still comply with i.SAF.
System readiness: Even though i.SAF-T submissions are only on demand, businesses must maintain their accounting systems in a state of readiness to generate compliant files at any time. The short response window (typically 10 to 30 days) leaves little room for last-minute system configurations.
Penalties for Non-Compliance
Lithuania enforces its i.MAS requirements with meaningful penalties:
- •i.SAF late filing: Fines ranging from €200 to €6,000 depending on the severity and frequency of non-compliance.
- •VAT return penalties: Fines of €200 to €390 per late return, plus daily interest of 0.03% on unpaid VAT amounts.
- •Data retention: All supporting documents and underlying data must be retained for 10 years from the end of the financial year, with clear audit trails maintained throughout.
Technical Requirements
- •Format: XML only, following Lithuania-specific schemas published by the VMI. Strict adherence to the published XML structure is required.
- •VAT rates: Standard rate of 21%, with reduced rates of 9% and 5% for specific goods and services.
- •VAT registration threshold: €45,000 annual turnover for Lithuanian entities.
- •Submission portal: Electronic filing through the VMI’s online system.
What Makes Lithuania’s Approach Distinctive
Lithuania’s three-module approach is unusual in Europe. Most countries implement either periodic SAF-T filing (like Poland or Romania) or on-demand SAF-T (like Norway or Luxembourg). Lithuania combines both: mandatory monthly invoice reporting through i.SAF with on-demand full accounting data through i.SAF-T, and adds real-time goods movement tracking through i.VAZ.
This comprehensive approach gives the VMI the ability to cross-reference invoice data, transport records, and accounting entries, creating multiple layers of verification that make tax evasion significantly more difficult. For businesses, it means maintaining compliance across three interconnected systems rather than just one.