Automate Reporting of Issued and Received Invoices with the i.SAF System in Lithuania

Lithuania is not lagging behind in the digitalization of electronic tax processes, a trend that is growing quickly in the countries of the European Union. Since October 01, 2016, all companies with a Lithuanian Tax Code have to submit once a month the information of their issued and received invoices via the i.SAF system to the Lithuanian tax authority State Tax Inspectorate (STI).

What is i.SAF electronic invoice reporting in Lithuania?

The reporting system for issued and received invoices i.SAF entered into force in October 2016. It is mandatory for all VAT taxpayers registered in Lithuania, even though they are foreign companies. In addition, there is no limit to the amount of the invoices: all invoices must be communicated. The i.SAF file is declared electronically on a monthly basis prior to the 20th of the following month. It is an electronic file in XML format that is sent via a WebService channel to the Lithuanian tax authority.

Preliminary procedures and information required 

To identify itself to the Lithuanian tax authority, each taxpayer shall obtain a digital certificate provided by a trusted service supplier.

The Lithuanian i.SAF system requires companies to electronically declare the following data:

• Registration of received invoices with VAT, including credit notes (even though the issuer is a foreign taxpayer).
• Registration of issued invoices with VAT.

Exception: registration receipts in cash considered invoices with VAT issued in fuel retailing. 

With the declaration of this information the Lithuanian government can compare the information of the invoices and gain better control over VAT returns.

This project is part of the smart tax administration system known as i.MAS and is based on three areas: electronic transport document (i.VAZ), electronic invoicing and VAT return (i.SAF), and electronic tax audit file (i.SAF-T).

How to automate this process from the internal management system

With the rise of national electronic tax compliance systems, companies face two main challenges: automation of communication with tax agencies and adaptation to different local systems.

In order to cope with these challenges and optimize resources intended to comply with laws, it is vital to have a technological platform that can be integrated with any able to integrate with any ERP and establish communications with any tax authority in the world to send the required file automatically.

EDICOM has developed a technological platform dedicated to helping companies in this respect. The EDICOM platform simplifies communication processes with tax authorities in multinational settings. It is the solution for companies that operate on different markets with centralized management systems that must be able to handle and send tax documents in accordance with the laws in force in each country.

Features of the EDICOM VAT reporting platform

• Automation: After obtaining the necessary information from the ERP, the platform automates the mapping of the XML and the sending to the tax authority, including the digital certificate of each taxpayer in each communication.
• Secure connectivity: A WebService communication channel with the Lithuanian tax agency is implemented through EDICOM's Public Administrations HUB. This is a powerful platform that allows connecting securely and directly with any Public Administration or State Agency.
• Centralization: The platform is not only prepared for electronic VAT returns, but also for electronic invoicing and any other commercial or tax related communications.
• Electronic file: EDICOM uses its Long-term Storage Service backed by the European certification that grants EDICOM the status of Qualified Trusted Service Supplier. Protection of documents under special security conditions is a fundamental point in the communications flow.
• Internationalization: This is a platform suitable for tax compliance in more than 60 countries throughout the world, meaning it is possible to centralize all procedures in a single solution.

Get to know the advantages of working with the EDICOM's Global VAT Platform and contact our experts who can give you advice on the best solution for your business.

How to do an electronic VAT return globally?

The great challenge for global companies is to meet local tax compliance. When it is necessary to have multiple technological solutions, one for each country, efforts are doubled and the actions become inefficient. This prevents the potential of automation.

To prevent this problem the EDICOM Platform has been created, a global solution for B2B2G electronic communications. Through this platform, companies can submit their EDI electronic invoicing and electronic VAT return for any region of the world. It is therefore, possible to centralize all transactions in a single platform, speeding up these tasks and reducing financial costs.

EDICOM coordinates HOSP&INVOICE project (Action No: 2017-EU-IA-0146).