Lithuanian Point of Single Contact inform about temporary provision of services in Lithuania. Find below what is cross-border and what are the opportunities for foreigners to provide services in Lithuania.
The European Union (EU) provides businesses with freedom to provide services on a temporary basis in other Member States, without having to be established.
What are the differences between establishment and temporary provision of services?
– Establishment embraces actual engagement of a service provider in business by establishing a permanent company for indefinite period of time.
– Temporary provision of services means temporary provision of services in the other EU Member State without being established. Temporariness of provision of services is determined by each Member State’s institutions taking into consideration the duration, regularity, frequency, continuity of provision and peculiarities of a specific service. Thus, every time institutions decide if services in the country in question are provided on temporary basis.
Lithuania adheres to the rule that a national or a company of the other EU Member State can provide services for maximum 180 subsequent days in a year. If services are provided for a longer term or if physical premises, in which the services are provided, exist, then such individual or company must be registered as a taxpayer in the State Tax Inspectorate and perform other procedures related with continuous operation (e.g. obtain a business license, permits, etc.).
Requirements for temporary provision of services
Temporary providers of services may be subject to certain requirements established by the legislation of Member States, which in no event may infringe the following principles:
1. Non-discrimination. The requirements may not directly or indirectly discriminate the provider because of his/her nationality, place of residence, or member state, in which the provider is established.
2. Necessity. The requirements must be based on the purposes of protection to public order, social safety, public health or environment.
3. Proportionality. The requirements must be proportional and adequate for achievement of the aspired goal and may not restrict the freedom to provide services more than needed for achievement of the aspired goal.
In the cases when because of the above-mentioned principles, prior to starting providing services on a temporary basis a permit must be obtained, repeated fulfilment of the same or essentially similar requirements, which have already been fulfilled by the service provider in the other Member State, may not be required from the service provider. Such way the entry into the other EU Member State’s market is simplified.