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Overview of SAF-T Reporting in Lithuania

Lithuania does not have a routine schedule for the submission of the Standard Audit File for Tax (SAF-T).

Instead, resident companies whose annual turnover exceeded certain phased thresholds (€700,000 for FY 2016 and €300,000 for FY 2017) must be prepared to export a full SAF-T XML file upon request from the State Tax Inspectorate (VMI), typically during an audit. The VMI usually gives a short deadline of about 10 days for submission. Foreign businesses that are solely VAT-registered in Lithuania are excluded from this SAF-T requirement.

i.SAF - Monthly Invoice Ledger for VAT-Registered Taxpayers

It is important not to confuse SAF-T with i.SAF. The i.SAF is an XML ledger that encompasses all sales and purchase invoices (Form FR0600). Every VAT-registered entity, whether local or foreign, is required to submit this file monthly by the 20th day of the month following the transaction month. Even in the absence of invoices issued, a zero report must be submitted. Submissions are made via the i.MAS portal or through an API.

SAF-T Submission Deadlines in Lithuania

The SAF-T does not require periodic submissions; instead, businesses must maintain readiness to provide their SAF-T records upon request from the tax authorities. Companies must ensure that their accounting systems can generate and deliver SAF-T-compliant reports promptly when requested by the VMI.

i.SAF Submission Deadlines in Lithuania

The i.SAF requirement is a continuous obligation that applies to all VAT-registered businesses in Lithuania, including foreign entities. This system mandates the submission of structured invoice data (Form FR0600) encompassing all sales and purchase invoices issued or received under the Lithuanian VAT number.

The i.SAF file must be submitted monthly by the 20th day of the month following the transaction. Even if no invoices have been issued or received within the reporting period, businesses are still required to submit a nil report.

Is SAF-T Mandatory in Lithuania?

Yes, SAF-T reporting is mandatory for all businesses registered for VAT in Lithuania. Regardless of the size or industry of the company, businesses must maintain digital accounting records in a standardized SAF-T format to comply with national tax regulations and SAF-T obligations.

SAF-T Requirements in Lithuania

Lithuania’s i.MAS platform comprises three subsystems that organize tax data:

  1. i.SAF: The monthly XML ledger of all sales and purchase invoices (Form FR0600) that every VAT-registered business, both local and foreign, must file by the 20th of the month following the transaction.
  2. i.SAF-T: The on-demand SAF-T file containing full accounting data (general ledger, accounts receivable/payable, inventory, fixed assets, etc.) required from resident Lithuanian companies. This file is submitted only when requested by the VMI, typically during an audit.
  3. i.VAZ: The consignment-note module for domestic goods movements (included for completeness).

All SAF-T files must adhere to the XML schema published by the VMI to ensure automated validation and analysis alongside i.SAF data during audits.

Introduction of SAF-T in Lithuania

The SAF-T framework was introduced in Lithuania in phases, commencing in 2016 for large enterprises. Over the years, the requirement has expanded, and by January 2020, all VAT-registered businesses in Lithuania were mandated to comply with SAF-T regulations. This phased approach allowed companies to gradually adapt to the new digital tax reporting framework established under the Lithuanian SAF-T model.

SAF-T Declaration Process in Lithuania

Upon receiving a request from the VMI, companies are given a short, fixed deadline (typically 10 calendar days) to export their accounting data into the SAF-T XML format and upload it via the i.MAS portal or API. It is essential for businesses to proactively configure their ERP or accounting systems to ensure they can readily retrieve data during an audit.

Which Companies Must Declare SAF-T in Lithuania?

  1. i.SAF: All VAT-registered businesses in Lithuania, including foreign entities, are obligated to submit i.SAF reports. This requirement is independent of company size or place of establishment. Each month, these businesses must report their sales and purchase invoice data in XML format (Form FR0600) via the i.MAS platform.
  2. SAF-T (i.SAF-T): This SAF-T requirement applies exclusively to resident Lithuanian companies that meet the relevant turnover threshold (currently €300,000 annually). These companies are only required to submit SAF-T files upon the request of the tax authority, typically during an audit or inspection.
  3. Foreign businesses that are VAT-registered in Lithuania but lack a permanent establishment or local accounting presence are exempt from submitting SAF-T files.

Lithuania's implementation of SAF-T marks a significant step toward improving tax compliance, enhancing transparency, and facilitating more efficient audits. Although SAF-T files are not submitted regularly, resident companies must be prepared to generate and deliver them promptly when requested by the tax authority. Ensuring that accounting systems are SAF-T compatible and maintaining well-structured financial data will help businesses confidently meet Lithuania’s digital reporting requirements.

How Can KGT Support You?

KGT has created an SAP-integrated SAF-T add-on solution for Lithuania, featuring outbound and inbound functionalities to meet tax reporting requirements. This add-on includes a data extractor and a cockpit for generating periodic SAF-T files in the legal format and controls before submission. When SAP DRC launched the Lithuanian  SAF-T solution as part of its e-document offerings, KGT emerged as a leading consultancy firm for SAP DRC and tax services. Recognized as an SAP DRC partner for Lithuanian SAF-T services, KGT is one of SAP's recommended implementation partners for this solution. We provide comprehensive support, including installation, configuration, customization, and training, to help you maximize the long-term value of your SAP DRC investment.

KGT is an SAP partner for PE services and an SAP Build partner, and to become an SAP partner, strict due diligence requirements must be met, including having certified SAP consultants. You can find us at: https://partnerfinder.sap.com/profile/0001925409