Reporting of Accounting Information via the i.MAS Electronic System in Lithuania (SAF-T)

Lithuania has implemented a digital system for tax control called i.MAS (Smart Tax Administration System) with the aim of improving tax efficiency, facilitating taxpayer compliance, and strengthening revenue collection. Since October 2016, all companies with a Lithuanian Tax Identification Number (TIN)—including foreign entities registered for VAT purposes—are required to report the information on their issued and received invoices through this electronic platform on a monthly basis, which is managed by the Lithuanian Tax Authority (STI).

Below are the main components of the i.MAS system and their implications for companies.

Smart Tax Administration System - i.MAS

Since October 1, 2016, all companies with a Lithuanian TIN must submit their issued and received invoice data once a month through the i.MAS system to the State Tax Inspectorate (STI). This requirement applies to all VAT-registered entities in Lithuania, even if they are foreign companies.

i.MAS is the electronic system for reporting tax and accounting information, created by the Lithuanian tax authority to optimize tax control, facilitate taxpayer compliance, and increase tax collection.

This project is part of the Smart Tax Administration System (i.MAS), which consists of three main areas: the electronic consignment note (i.VAZ), electronic invoicing and VAT declaration (i.SAF), and the electronic tax audit file (i.SAF-T).

Through the declaration of this information, the Lithuanian government will be able to cross-reference invoice data and gain better control over VAT declarations. 

What is Electronic Invoice Reporting in Lithuania?

The i.MAS system is composed of several subsystems, the most notable of which are i.SAF, i.VAZ, and i.SAFT.

i.VAZ: Goods Movement Reporting Subsystems

Taxpayers must report the movement of goods within Lithuanian territory using an electronic document named after the subsystem: i.VAZ data file. The obligation applies to taxpayers who meet all the following conditions:

1. When goods are loaded and transported by road within the territory of the Republic of Lithuania.
2. The sender and recipient of the goods are individuals or legal entities engaged in economic activities.
3. When there is a commercial relationship between the sender, recipient, transporter, transport operator, or any other person authorization by them.

i.SAF: Invoice Reporting Subsystem

Taxpayers must report VAT and specific data from the electronic invoices issued and received to the Lithuanian tax authority via the i.SAF platform by submitting an electronic document also called i.SAF. This report must be submitted monthly, on the 20th of the following month. 

i.SAF-T: Fiscal and Accounting information Reporting Subsystem

The i.SAF-T subsystem allows for the registration, submission, and analysis of fiscal and accounting information declarations in the SAF-T format. These must be sent to the platform of the Lithuanian tax authority. 

Prerequisites and required information

To identify themselves with the Lithuanian tax authority, each taxpayer must obtain a digital certificate provided by a trusted service provider.

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

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

Exception: Cash receipts considered VAT invoices in retail fuel sales. 

How to automate this process from an internal management system

EDICOM’S platform simplifies communication processes with tax authorities in multinational environments. It is the solution for companies operating in multiple markets from centralized management systems that need to process and send tax documents in compliance with the legislation in each country. 

EDICOM’s solution offers WebService connectivity with the three subsystems, as well as the generation of reports in the legally required format.

For web services, a digital certificate provided by the i.MAS system must be used once taxpayers are registered.

Platform Features

Automation: Once the necessary information is extracted from the ERP, the platform automates the mapping of the XML and sends it to the tax authority, including the digital certificate of each taxpayer in every communication.

Secure Connectivity: Through EDICOM’s Public Administration HUB, a WebService communication channel with the Lithuanian tax authority is implemented. It is a powerful platform that allows secure and direct connections with any public administration of state agency. 

Centralization: The platform is not only prepared for electronic VAT reporting but also for electronic invoicing and any other commercial or fiscal communication.

Electronic Archiving: EDICOM uses its Long-Term Archiving Service, backed by European certification that grants EDICOM the status of Qualified Trust Service Provider. Safeguarding documents under special security conditions is a key point in the communication flow. 

Globalization: It is a platform suitable for tax compliance in more than 85 countries worldwide, allowing the centralization of all processes in a single solution.