Car Sale Taxes in Lithuania 2026 — PIT, Declaration Guide

Selling a car and worried about taxes? Good news — in most cases, you won't need to pay any. But there are exceptions. This article provides clear information about taxes when selling a car in Lithuania.

What You'll Find in This Article

Illustration: What you'll find in this article

• When no taxes are due
• When you must pay PIT (Personal Income Tax)
• How to calculate the tax
• Declaration to VMI (tax authority)
• Business owners and VAT

The Main Rule

For private individuals: When selling personal property (a car), you do NOT need to pay income tax IF the car was used for personal purposes.

Why? Under Lithuanian tax law, the sale of personal property is not taxable if it was not an activity aimed at profit.

When You DON'T Need to Pay Taxes

1. Selling Your Personal Car

• The car was registered in your name
• You used it for personal purposes
• It doesn't matter whether you sell for more or less than you paid

Example: You bought a car for 10,000 EUR and sell it for 12,000 EUR. No tax.

2. You Inherited a Car and Are Selling It

• Inheritance tax has already been paid (or was not applicable)
• No sale tax applies

3. You Received a Car as a Gift and Are Selling It

• Gift tax has already been paid (or was not applicable if from a close relative)
• No sale tax applies

When You DO Need to Pay Tax

1. Conducting Business Activity

If you regularly buy and sell cars for profit — this is considered individual business activity.

Indicators:

• You sell more than 3 cars per year
• You buy with the intent to resell
• You advertise yourself as a seller
• You track profit/loss

Tax: 15% PIT on profit + VAT may apply.

2. Company-Owned Vehicle

If the car belongs to a company:

• The sale is taxed as company income
• Corporate income tax (15%)
• VAT may apply (21%)

3. You Sold for Significantly More Than You Paid (Rare Case)

In theory: If you sell for significantly more than you paid, VMI may ask questions.

In practice: Cars typically depreciate, not appreciate. This case is very rare (except for collector cars).

How to Calculate the Tax (If Applicable)

Individual Business Activity

Formula:

Profit = Sale price – Purchase price – Expenses
Tax = Profit x 15%

Example:

• Purchased for: 10,000 EUR
• Spent on repairs: 1,000 EUR
• Sold for: 13,000 EUR
• Profit: 13,000 – 10,000 – 1,000 = 2,000 EUR
• Tax: 2,000 x 15% = 300 EUR

Important: Deductible Expenses

You can deduct:

• Purchase price
• Repair costs (with invoices!)
• Registration fees
• Other justified expenses

You cannot deduct:

• Fuel costs
• Insurance
• Personal taxes

Declaration to VMI (Tax Authority)

If You're a Private Individual (Not a Business)

Do you need to declare the sale of a personal car?

NO — if it's a one-time sale of personal property.

YES — if:

• You conduct business activity
• You sell many cars
• VMI requests it

If You Conduct Business Activity

You must:

1. Register your activity (if not already registered)
2. Keep an income/expense journal
3. File an annual declaration
4. Pay PIT and Sodra (social insurance) contributions

Annual Declaration

Form: GPM308

Deadline: By May 1 for the previous year

Business Owners and VAT

Illustration: Business owners and VAT

When Is VAT Required?

If you sell as a VAT payer:

• Your company is a VAT payer
• The car was purchased with VAT deduction
• The sale is subject to VAT (21%)

If the car is from the EU (used):

• The "margin" scheme may apply
• VAT is calculated only on the margin (profit)

Individual Enterprise Cases

If you own an individual enterprise (IE) and sell a company car:

• Income is included in company revenue
• Corporate income tax may apply
• Consult an accountant

Practical Tips

Keep Your Documents

Be sure to keep:

• Purchase invoice/contract
• Sale contract
• Repair invoices
• Registration documents

For how long? At least 5 years (VMI audit period).

Write the Correct Price in the Contract

Why is this important?

• VMI can check
• Incorrect data = problems
• It matters for the buyer too (if they resell)

Don't Abuse the System

If you regularly buy/sell:

• Register your business activity
• Pay taxes
• You'll avoid fines

Common Situations

Situation 1: Selling My Personal Car

Question: I bought for 15,000 EUR and sell for 12,000 EUR. Will I pay taxes?

Answer: NO. This is a personal property sale — no tax.

Situation 2: Selling for More Than I Paid

Question: I bought for 8,000 EUR, invested in repairs, and sell for 11,000 EUR. Will I pay taxes?

Answer: NO, if it's a one-time case and the car was for personal use. If it's regular activity — YES.

Situation 3: Selling My Third Car This Year

Question: I've already sold 2 cars, now selling a third. Will VMI notice?

Answer: Possibly. If all sales are one-off (family cars), probably not. If a resale motive is apparent — there may be questions.

Situation 4: I Received a Car as a Gift and Want to Sell

Question: My father gave me a car as a gift, and I want to sell it. What taxes?

Answer: Gifts between close relatives are tax-free. There is no sale tax either (personal property).

Taxes When Buying a Car

From a Private Person in Lithuania

Taxes: None (except registration ~21 EUR)

From a Company/Dealership in Lithuania

Taxes: VAT is already included in the price

Importing from the EU

Taxes: None additional (except registration)

Importing from Outside the EU (USA, UK)

Taxes:

• Customs duty: 10%
• VAT: 21%

More: Car Import from Germany

Frequently Asked Questions

Conclusions

Our expert recommendation

Key takeaway: When selling a personal car, in most cases you do NOT need to pay taxes.

Exceptions:

• You conduct resale activity
• You're selling a company car
• You regularly sell many vehicles

Tips:

• Keep your documents
• Write real prices
• If in doubt — consult VMI or an accountant

If you're considering another way to acquire a car, read about leasing with buyout or use the leasing calculator to estimate your monthly payment. And if you want to sell quickly and hassle-free, use our car buyout service.

Have questions about selling a car? Contact WheelStreet — we'll help you understand the situation.

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