Use this area to offer a short preview of your email's content. Can't see images? Click here...

Euro | Leinonen Lithuania

Dear Reader,

On 23 July 2014 the EU Council has adopted a decision that from 1 January 2015 Lithuania will become a member of the eurozone which will start using the euro. The rate between the litas and the euro – 3.45280 has also been fixed (this rate is the same as fixed by the Bank of Lithuania in 2002).

The main practical information relating to the introduction of the euro is given below.

Practical information related to the introduction of the euro in Lithuania

The mandatory display of prices in two currencies – litas and euro

On 22 July 2014 the Government approved the requirements for the display of prices for goods and services in both litas and euro and a description of following the monitoring procedure in accordance thereof the suppliers of goods and services must communicate the dual display of prices from 22 August 2014 to 30 June 2015.

According to this description, the dual display of prices will be offered in all places for acquisition of goods/services, places of their advertising, internet shops and websites.

In the trade and services supply (except for internet shops), as well as in electronic devices (cash registers, scales, etc.) that do not display prices in two currencies prices may be displayed in one currency, i.e. prior to the introduction of the euro – in litas, upon the introduction of the euro – in euro.

Display of two currencies in invoices

During the period of the mandatory display of prices in litas and euro, in all invoices or VAT invoices issued whereby the supply of goods/services has been executed:

  • prior to the introduction of the euro (until 31 December 2014), all data are indicated in litas
  • upon the introduction of the euro (from 1 January 2015) – in euro

As additional information (at the purchaser’s request) another foreign currency (in euro, dollars, etc.) may be indicated in VAT invoices and invoices.

During the period of the mandatory display of prices in litas and euro, the final payable amount to be paid by the consumer to the seller shall be displayed in both litas and euro also in the cases of supply of utility services – in bills or payment notices for goods/services in question submitted to consumers by suppliers or in an additional sheet submitted to consumers that is appended to invoices or payment notices.

Amending the Articles of Association

The Ministry of Economy has prepared a draft law on the conversion into euro of the par value of the authorized capital and securities of the public and private limited liability companies to be considered at the immediate session of the Government.

It foresees that the size of the authorized capital which is equal to the amount of the par values of all the subscribed company’s shares in euro with the precision of euro cents shall be expressed in euro with the precision of euro cents. Change in the authorized capital size due to the rounding of the par value of the share in euro with the precision of euro cents shall not be deemed to be an increase or decrease of the authorized capital and shall be accounted as the company’s income of the financial year covering the euro adoption day (where the change is negative) or expenditure (where the change is positive).

Upon the euro adoption, the Articles of Association of the company must be amended by expressing in euro the size of the authorized capital and the par value of the shares. The amended Articles of Association shall be submitted to the registrar of the Register of Legal Entities within 24 months from the day of enforcement of this law (by 31 December 2016).

Continuity of contracts

Item 13 of the National Changeover Plan has enforced the principle of continuity of contracts and financial instruments. It foresees that all documents with references to the litas will be valid for the total validity term indicated therein following the changeover.

Therefore, there will be no need to amend employment contracts in the mandatory procedure after the euro adoption. Even though the mandatory requirement to amend employment contracts does not exist, such amendments could be made by agreement between the parties.

Seeking for legal certainty and clarity, however, it is necessary to inform the employees about the specific wages of employees in euro, the law-regulated procedure of currency conversion and its performance.

Annual financial statements

Currency, used in financial statements of 2014-2015:

Tax payment and declaration

The Law on the Introduction of the Euro of the Republic of Lithuania has established that in tax declarations or adjusted declarations the monetary values shall be indicated:

From the euro adoption day the payment operations for all taxes, charges and other contributions as well as other related payable amounts (default interest, fines) shall be handled in euro.

Peculiarities of declaration and payment of specific taxes are given below: 

Do you need advise in Lithuania?

Leinonen Lithuania helps companies enter and succeed in the Baltic and Lithuanian markets.

If you need any help or more detailed information, please contact:

MAŽENA BIRBALIENĖ

Head of advisory unit

tel. +370 5 237 504 0

e-mail: mazena.birbaliene@leinonen.lt

Contact Us Now

Leinonen Group is a Finnish-owned private accounting and advisory company, which was established already in 1989. Leinonen Group helps companies enter and succeed in challenging business environments by offering reliable accounting, payroll management, advisory, administration, and audit services. The deep local expertise and personal service approach, combined with wide international presence, is our strength. Our 13 offices can be found in the main cities of 11 countries – Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Poland, Bulgaria, Hungary, Russia, and Ukraine.

Read more: www.leinonen.eu

Follow Leinonen Group in Social Media

Twitter Linkedin

Best Regards

Leinonen Lithuania

Vilnius | Kaunas

+ 370 5237 5040

leinonen@leinonen.lt

www.leinonen.lt

Leinonen Lithuania

Labdarių g. 5, Vilnius
Lithuania

Unsubscribe