VAT
Baltic VAT through five SME scenarios
VAT is less about the country name and more about what you sell, who buys it, where the customer is, and whether you can recover input VAT. Use scenarios before assuming that one Baltic VAT setup fits every business.
| Scenario | Question to answer | Common planning issue |
|---|---|---|
| Local B2C sales | Do you exceed local or EU distance-sales thresholds? | Consumer pricing must include VAT impact. |
| B2B services | Is the customer VAT-registered in another EU country? | Reverse charge and evidence collection. |
| Imports | Who is importer of record? | Cash-flow timing and import VAT recovery. |
| Mixed exempt/taxable activity | Can you recover input VAT fully? | Partial deduction can change unit economics. |
| Voluntary registration | Will input VAT recovery outweigh admin cost? | Monthly reporting and accounting cost. |
Use the calculator for first-pass modelling only. VAT treatment depends on transaction detail and evidence.
Sources: Estonian VAT, Latvian VAT, Lithuanian VAT.