All About E-Invoicing in Lithuania

Lithuania has made advanced digital infrastructure a central part of its long‑term economic strategy. Following Directive 2014/55/EU and based on the EU EN 16931 standard, Lithuania has created a comprehensive implementation plan for electronic invoicing. Through its national e-invoicing platform, SABIS (General Account Administration Information System), Lithuania is at the forefront of European countries that have embraced digital invoicing.

In accordance with the Lithuanian Law on Public Procurement, it is a requirement for both economic operators and public contracting authorities to adopt digital B2G electronic invoicing. Businesses must submit B2G e-invoices through the SABIS platform using Peppol BIS Billing 3.0 or CII formats, while B2B e-invoicing remains voluntary, allowing companies to choose their preferred electronic invoicing approach for private sector transactions.

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From 1 January 2025, all invoices resulting from verbal contracts, regardless of amount, must be submitted through the SABIS platform. This expands on previous rules, which only required submission for verbal contracts over EUR 1,000 (excluding VAT).

SABIS became the sole mandatory B2G e-invoicing platform from 1 September 2024, fully replacing the legacy E.sąskaita system after a two-month phased transition. The platform is integrated with the Peppol network for cross-border invoice exchange and will remain free for businesses for at least five years.

What Is E-Invoicing and Why Lithuania Is Adopting It?

E-invoicing transforms paper invoices into structured, machine-readable documents that support automatic processing, smooth accounting integration, and real-time tax reporting.

Lithuania adopted e-invoicing to boost transparency in public procurement, cut administrative errors, and speed up payments while complying with EU digital standards. The system reduces manual mistakes, accelerates payment cycles, and guarantees legal authenticity via eIDAS-certified electronic signatures.

The Evolution of E-Invoicing in Lithuania

Lithuania's e-invoicing journey spans several years of strategic development, marked by progressive legislative and technical updates:

• July 2017: B2G electronic invoicing became mandatory for all suppliers to the public sector, establishing Lithuania as an early adopter of digital invoicing in the EU.
• April 2018: All central government contracting authorities and entities in Lithuania became required to receive and process electronic invoices, ensuring comprehensive coverage across the public sector.
• April 2019: E-invoicing in Lithuania connected to the Peppol network, mandating the issuance of Peppol BIS Billing 3.0 e-invoices between suppliers and public contracting authorities. This marked Lithuania's entry into Europe's standardized e-invoicing ecosystem.
• December 2022: The Lithuanian Ministry of Economy and Innovation announced plans to develop a new e-invoicing exchange system (later named SABIS) to replace E.sąskaita and promote better harmonization with EU standards.
• September 2023: Original planned launch date for the SABIS e-invoicing platform (later adjusted to July 2024).
• May 2024: The National Center for Common Functions announced that SABIS would replace E.sąskaita starting 1 July 2024, with no initial transition period planned.
• June 2024: NBFC revised the implementation approach, introducing a two-month phased transition period (July-August 2024) based on user feedback and to allow better business preparation. The SABIS TEST environment became available to developers, with XSD schemas and technical specifications published.
• 1-14 July 2024: Phase 1 of SABIS go-live began. Week 1 focused on institutions reviewing accounts and contracts; Week 2 saw suppliers and buyers start issuing and receiving invoices, including those based on verbal contracts exceeding EUR 1,000 (excluding VAT).
• 15 July - 31 August 2024: Transition period where suppliers were expected to submit through SABIS but could use E.sąskaita if difficulties arose. Buyers monitored both platforms during this phase.
• 30 August 2024: E.sąskaita platform was disconnected and decommissioned.
• 1 September 2024: SABIS became fully operational as the sole B2G e-invoicing platform in Lithuania.
• 1 January 2025 : All invoices based on verbal contracts, regardless of amount, must be submitted through SABIS, expanding the platform's scope significantly.  using mobile applications free of charge for invoices submitted under oral contracts.

The gradual and consultative approach adopted by Lithuanian regulators has helped build confidence across the business landscape, with educational resources, video training, and a TEST environment supporting smooth adoption.

B2G Electronic Invoicing in Lithuania

Lithuania mandates standardized B2G e-invoicing through the SABIS platform, complying with Directive 2014/55/EU. Lithuania has a fully mandatory B2G e-invoicing regime, meaning every supplier to Lithuanian public sector entities must issue and transmit structured electronic invoices when dealing with public contracting authorities and entities, regardless of contract value or whether the contract is written or verbal. 

Invoices must comply with the European standard EN 16931, typically implemented via Peppol BIS 3.0 or equivalent formats, ensuring semantic and technical alignment with EU norms. 

B2B Electronic Invoicing in Lithuania

In Lithuania, B2B e-invoicing is voluntary. Businesses can issue electronic invoices in any agreed format for B2B transactions.

Many Lithuanian companies are adopting EN 16931 and Peppol BIS Billing 3.0 standards to:

• Prepare for possible EU-wide B2B mandates (such as the 2028 ViDA initiative)
• Ensure smooth cross-border invoicing with European partners
• Improve efficiency by automating processes and speeding payments
• Use the same technical setup for both B2G and B2B invoices

Using certified Peppol Access Points, companies can expand their B2G systems to cover B2B invoicing, creating a unified digital invoicing process. This voluntary approach lets businesses stay flexible while gearing up for future regulations and operational benefits.

B2C E-Invoicing and Fiscalization in Lithuania

B2C e-invoicing in Lithuania is currently optional. Businesses can issue electronic invoices to consumers but there is no mandatory national platform like SABIS for B2G transactions. Companies usually manage B2C e-invoicing through their own systems or private providers.

Lithuania does not require real-time sales reporting via certified cash registers for all retail sectors, unlike some EU countries with full fiscalization. However, businesses must keep accurate VAT records and follow regular tax documentation rules.

The government may consider expanding digital invoicing to B2C in the future. The existing SABIS platform and Peppol network provide a solid base to support potential B2C e-invoicing if new regulations are introduced.

Handling Foreign Electronic Invoices and Cross-Border Compliance

Lithuania’s connection to the Peppol network enables easy cross-border e-invoicing for foreign companies dealing with Lithuanian public sector buyers.

Foreign suppliers from the EU and beyond can send compliant e-invoices via certified Peppol Access Points. Invoices must follow EN 16931 standards and use Peppol BIS Billing 3.0 or CII formats.

Foreign suppliers must include valid VAT IDs, tax codes per EN 16931, all required Lithuanian procurement fields, and eIDAS-compliant digital signatures.

E-Reporting and VAT Compliance in Lithuania - The i.MAS System

Lithuania uses the i.MAS system, developed by the State Tax Inspectorate (VMI), for electronic tax and VAT reporting. It helps improve tax control, compliance, and collection.

i.MAS has three parts:

1. VAZ: Monthly reports of transport documents tracking goods movement for VAT purposes.
2. SAF: Monthly reports of invoices sent and received, used by registered Lithuanian VAT taxpayers to verify transactions.
3. SAFT: Standardized electronic tax files for audits, with detailed data for tax authorities.

The SABIS platform handles real-time B2G e-invoice submission, while i.MAS manages broader VAT reporting and compliance. SABIS ensures invoices follow EN 16931 standards, and i.MAS monitors VAT through invoice and transport data.

Your Trusted Partner for E-Invoicing in Lithuania

Choosing the right e-invoicing provider is essential to seamlessly comply with Lithuania’s mandatory B2G e-invoicing requirements via the SABIS platform. Providers must support smooth integration with SABIS, convert invoices into mandated formats like Peppol BIS Billing 3.0 or CII, enable automatic submission, and efficiently manage compliance validation and error handling.

DDD Invoices is Lithuania’s trusted expert in digital invoicing, delivering direct connectivity that fully automates your invoice lifecycle, from creation and submission through secure archiving. We transform Lithuania’s complex regulatory landscape into streamlined operations, empowering your business to meet compliance requirements with ease while enhancing efficiency and transparency.

FAQs

When did mandatory B2G e-invoicing start in Lithuania?

Mandatory B2G e-invoicing in Lithuania started on 1 July 2017, making Lithuania an early adopter among EU countries. Since 1 September 2024, all B2G invoices must be submitted through the SABIS platform, which replaced the legacy E.sąskaita system.

How does SABIS help businesses with invoicing and compliance?

SABIS makes invoicing easier by checking invoices in real-time against EN 16931 standards, automatically validating mandatory fields and tax rules. Each compliant invoice receives a unique identifier and timestamp, and the system archives invoices securely for 10 years. This helps prevent errors before they reach contracting authorities, speeds up payment processing, and ensures audit readiness.

Is e-invoicing mandatory for B2B transactions in Lithuania?

No, B2B e-invoicing remains voluntary in Lithuania. Businesses can choose any electronic invoice format agreed upon with their trading partners. However, many companies are adopting EN 16931 and Peppol BIS Billing 3.0 standards voluntarily to prepare for potential future mandates and to enjoy the benefits of standardized, automated invoicing.

What invoice formats does SABIS accept?

SABIS accepts EN 16931-compliant formats only:

• Peppol BIS Billing 3.0 (both UBL and CII variants) for Invoice and Credit Note
• UBL 2.1 LT (Lithuanian implementation specification)

The original national XML format from before 2019 is technically still accepted but Peppol BIS 3.0 is strongly encouraged for better compatibility.

Can businesses send invoices to consumers electronically in Lithuania?

Yes, B2C e-invoicing is currently voluntary in Lithuania. There is no standardized national platform requirement or fiscalization mandate for all retail sectors like in some other EU countries. Businesses can choose to implement B2C e-invoicing through their own systems or private service providers.

What are the requirements for verbal contracts?

Since 1 July 2024, invoices based on verbal contracts exceeding EUR 1,000 (excluding VAT) must be submitted through SABIS. Starting 1 January 2025, this requirement expands to include ALL invoices based on verbal contracts, regardless of amount.

How long must businesses archive e-invoices in Lithuania?

Lithuanian law requires businesses to securely archive e-invoices for at least 10 years. SABIS provides this archiving capability automatically for all invoices processed through the platform, with retrieval available for audit purposes throughout the retention period.

What happens if my invoice is rejected by SABIS?

If SABIS rejects an invoice, the system provides detailed error messages explaining what needs to be corrected. Common rejection reasons include missing mandatory fields, incorrect VAT numbers, improper tax categories, or format validation failures. You must correct the errors and resubmit the invoice. The payment clock doesn't start until a valid invoice is accepted.

Can foreign companies submit invoices to Lithuanian public entities?

Yes, foreign companies can submit compliant e-invoices to Lithuanian public entities through certified Peppol Access Point providers. The invoices must meet EN 16931 standards and use Peppol BIS Billing 3.0 or CII formats. Lithuania's integration with the Peppol network makes cross-border invoicing straightforward using the four-corner model.

What is the Peppol network and why is it important?

The Peppol (Pan-European Public Procurement Online) network provides standardized infrastructure for exchanging e-invoices across Europe. Lithuania's SABIS platform is connected to Peppol, enabling seamless cross-border invoicing with other EU countries. Using a certified Peppol Access Point allows businesses to invoice multiple European jurisdictions through a single integration.

How does SABIS integrate with the i.MAS VAT reporting system?

While SABIS handles B2G invoice submission and processing, the i.MAS (Smart Tax Administration System) monitors broader VAT compliance through its subsystems (VAZ for transport documents, SAF for invoice registers, SAFT for tax audits). Together, these systems create a comprehensive digital tax and procurement ecosystem overseen by the Ministry of Finance and State Tax Inspectorate.