Manufacturer of construction products
This guide sets forth the main requirements for the manufacturers of construction products.
A construction product is any product or kit which is produced and placed on the market for incorporation in a permanent manner in construction works or parts thereof and the performance of which has an effect on the performance of the construction works with respect to the basic requirements for construction works.
The manufacturer of construction products is any natural or legal person who manufactures a construction product or who has such a product designed or manufactured, and markets that product under his name or trademark.
Harmonised construction products
In accordance with the provisions of Regulation (EU) No. 305/2011 of the European Parliament and of the Council of 9 March 2011 laying down harmonised conditions for the marketing of construction products and repealing Council Directive 89/106/EEC (OJ 2011 L 88, p. 5) (hereinafter referred to as Regulation (EU) No. 305/2011 of the European Parliament and of the Council), construction products that have harmonised technical specifications (harmonised European standards and European Assessment Documents serving as a basis for the issuance of European Technical Assessments) are placed on the market.
Non-harmonised construction products
Requirements for harmonised and non-harmonised construction products
- The manufacturer draws up a declaration of performance (DP) for each construction product.
- With regard to harmonised construction products, the DP is drawn up according to Annex III to Regulation No. 305/2011.
- With regard to non-harmonised construction products, the DP is drawn up according to STR 1.01.04:2015 “Assessment, verification and declaration of the constancy of performance of construction products without harmonised technical specifications – Designation of testing laboratories and certification bodies – National technical assessments; designation and publication of technical assessment bodies”.
- CE marking has to be affixed to harmonised construction products.
- CE marking may be affixed to non-harmonised construction products that have European Technical Assessments drawn up for them.
- The DP and other technical documents have to be drawn up in Lithuanian if the products are to be placed on the Lithuanian market (according to Article 21(16) of the Law on Construction).
- Republic of Lithuania Law on Construction
- Regulation (EU) No. 305/2011 of the European Parliament and of the Council of 9 March 2011
- STR 1.01.04:2015 “Assessment, verification and declaration of the constancy of performance of construction products without harmonised technical specifications – Designation of testing laboratories and certification bodies – National technical assessments; designation and publication of technical assessment bodies”
- Order of the Minister of Environment of the Republic of Lithuania “On the approval of the List of Regulated Construction Products”.This list is updated every year.
Here you will find information about applicable taxes by business forms. Abbreviations used:
- VSD – state social insurance contribution
- PSD – Compulsory Health Insurance Fee
- GPM – Personal Income Tax
- VAT – value added tax
- PM – profit tax
- NPD – non-taxable income
- PNPD is an additional NPD
- MMA – the minimum monthly salary
- Corporate Income tax – 15 %. Taxable profits of entities whose average number of employees on the staff list does not exceed 10 and whose income during a tax period do not exceed EUR 300 000 shall be taxed at a rate of 0% during the first tax period, and at a rate of 5% during other tax periods, except for the cases specified in the law.
- The Standard Value added tax (VAT) rate is 21%. Taxable persons engaged in the provision of goods or services in Lithuania must register as VAT payers and calculate and pay VAT to the state budget. However, a taxable person of the Republic of Lithuania does not have to register as a VAT payer and does not have to calculate nor pay VAT on the goods and/or services supplied, provided that the aggregate amount received from the goods and/or services supplied as part of routine business activities does not exceed EUR 45,000 during the last 12 months. Registration as a VAT payer is not mandatory where the aggregate value of all goods purchased from the other EU Member States does not exceed EUR 14,000 (excluding VAT). There is an opportunity for voluntary registration as a VAT payer in cases where the aforesaid limit amounts are not exceeded.
- Real Estate Tax (if the legal entity has registered immovable property) – 0,30% – 3,00% (depends on immovable property value).
- Dividends and other income from distributed profits shall be taxed at a rate of 15 %.
- Taxes of the workplace:
- Personal income tax – 20 % (if the income doesn’t exceed 84 average wages, which are EUR 104,278 per year, 32 % (if the income does exceed 84 average wages).
- Unemployment Social Insurance – 1,31 % (employment contract with indefinite duration). Fixed-term employment contract – 2,03 %.
- Social insurance against accidents at work and occupational diseases – 0,14 -1,40 %.
- State social insurance – 8,72 % (additional pension contribution 2,1 % or 3,0 %).
- Compulsory health insurance – 6,98 %.
- Sickness Social Security – 2,09%
- Maternity Social Security – 1,71%
- Contribution to the long-term employment fund – 0,16 %
Find out more about the establishment, comparison, and comparison with other business forms here.
- Corporate Income tax – 15 %. Taxable profits of entities whose average number of employees on the staff list does not exceed 10 and whose income during a tax period do not exceed EUR 300 000 shall be taxed at a rate of 0% during the first tax period, and at a rate of 5% during other tax periods, except for the cases specified in the law.
- The Standard Value added tax (VAT) rate is 21%. Taxable persons engaged in the provision of goods or services in Lithuania must register as VAT payers and calculate and pay VAT to the state budget. However, a taxable person of the Republic of Lithuania does not have to register as a VAT payer and does not have to calculate nor pay VAT on the goods and/or services supplied, provided that the aggregate amount received from the goods and/or services supplied as part of routine business activities does not exceed EUR 45,000 during the last 12 months. Registration as a VAT payer is not mandatory where the aggregate value of all goods purchased from the other EU Member States does not exceed EUR 14,000 (excluding VAT). There is an opportunity for voluntary registration as a VAT payer in cases where the aforesaid limit amounts are not exceeded.
- Real Estate Tax (if the legal entity has registered immovable property) – 0,30% – 3,00% (depends on immovable property value).
- Dividends and other income from distributed profits shall be taxed at a rate of 15 %.
Personal withdrawals by Small Partnership member:
- Personal income tax – 20 % of the number of funds withdrawn for personal needs.
- State social insurance contributions are paid from 50 % of the number of funds withdrawn for personal needs.
State social insurance contribution rates:
- 13,83 %;
- 15,93 % if a partner of small partnership participates in the supplementary accumulation of pensions (2,1 %);
- 16,83 % if a partner of small partnership participates in the supplementary accumulation of pensions (3,0 %);
- Compulsory health insurance – 6,98 % from 50 % of the number of funds
withdrawn for personal needs.
The income of the small partnership manager, who is also a small partnership member:
- Personal income tax – 15 %.
- Pension insurance tax and compulsory health insurance tax do not need to pay.
The income of a non-small partnership member for the manager services:
- Personal income tax – 20 %.
- The state social insurance contributions for the heads of small partnerships, which are not partners of these small partnerships according to the Law on Small Partnerships, are paid to the pension social insurance under the same procedure as they are paid for persons who have an employment relationship or another type of relationship equivalent to employment at the following rate:
- 15,70 % (8,72 % for the pension insurance, 6,98 % for the health insurance);
- 17,80 % if the pension is accumulated voluntarily 2,1 % (8,72 % for the pension insurance, 6,98 % for the health insurance, 2,1 % additional pension contribution).
- 18,70 % if the pension is accumulated voluntarily 3,0 % (8,72 % for the pension insurance, 6,98 % for the health insurance, 3,0 % additional pension contribution).
More about MB, its establishment and comparison with other business forms can be found here.
- Corporate Income tax – 15 %. Taxable profits of entities whose average number of employees on the staff list does not exceed 10 and whose income during a tax period do not exceed EUR 300 000 shall be taxed at a rate of 0% during the first tax period, and at a rate of 5% during other tax periods, except for the cases specified in the law.
- The Standard Value added tax (VAT) rate is 21%. Taxable persons engaged in the provision of goods or services in Lithuania must register as VAT payers and calculate and pay VAT to the state budget. However, a taxable person of the Republic of Lithuania does not have to register as a VAT payer and does not have to calculate nor pay VAT on the goods and/or services supplied, provided that the aggregate amount received from the goods and/or services supplied as part of routine business activities does not exceed EUR 45,000 during the last 12 months. Registration as a VAT payer is not mandatory where the aggregate value of all goods purchased from the other EU Member States does not exceed EUR 14,000 (excluding VAT). There is an opportunity for voluntary registration as a VAT payer in cases where the aforesaid limit amounts are not exceeded.
- Real Estate Tax (if the legal entity has registered immovable property) – 0,30% – 3,00% (depends on immovable property value).
- Dividends and other income from distributed profits shall be taxed at a rate of 15 %.
Personal withdrawals by Individual Enterprise owner:
- Personal income tax – 20 % of the number of funds withdrawn for personal needs.
- State social insurance contributions are paid from 50 % of the number of funds withdrawn for personal needs.
State social insurance contribution rates:
- 13,83 %;
- 15,93 % if a partner of small partnership participates in the supplementary accumulation of pensions (2,1 %);
- 16,83 % if a partner of small partnership participates in the supplementary accumulation of pensions (3,0 %);
- Compulsory health insurance – 6,98 % from 50 % of the number of funds withdrawn for personal needs.
- The personal income tax (gyventojų pajamų mokestis or GPM in Lithuanian)
- 5%-15% tax is applied for persons performing individual activities. Non-residents are taxed at the same rate as residents (for income obtained in Lithuania).
- Mandatory health insurance (Privalomasis sveikatos draudimas or PSD in Lithuanian) gives access to free health insurance services (to the majority of them). If the person is not insured with PSD s/he has to pay for medical services.
- The Compulsory health insurance (PSD) size is 6,98 percent. It is calculated from the income, from which the social insurance contributions are calculated from, meaning – 90 percent of taxable income (without deducting VSD and PSD payables).
- The main goal of the state social security system is to guarantee income for the insured when they are not able to work due to sickness, maternity, age, disability or other reasons. The social security tax has to be paid also by self-employed persons, athletes, artists, and others.
- The contributions (payables) to “Sodra” are paid from the 90 percent of the taxable income from the individual economic activity (without deduction of State social insurance (VSD) and Compulsory health insurance (PSD).
VSD contributions rate:
- 12,52 percent.
- 14,62 percent if the person saves for a supplementary pension (2,1 percent);
- 15,52 percent if the person saves for a supplementary pension (3 percent).
VAT is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption. It is a tax paid by consumers. The standard VAT rate in Lithuania is 21 %. The reduced VAT rates are as follows: 0%, 5 %, and 9%.
To provide accurate information about the entity’s financial position, performance and cash flows, the required financial statements. The financial statements comprise the following financial statements:
- balance;
- profit and loss statement;
- cash flow statement;
- statement of changes in equity;
- explanatory note.
For more information on tax administration, please contact the State Tax Inspectorate’s departments www.vmi.lt, e-mail: vmi@vmi.lt, +370 5 266 8200; 8 5 255 3190.
In conducting your business, you must keep records in accordance with the requirements for the management of accounting of legal entities of unlimited civil liability. The accounting can be managed by the owner of the company, an accountant, a contract accounting company, or a self-employed accounting service.
Law on Accounting. Read more.
Business Accounting Standards. Read more.
Law on the Financial Reporting of Enterprises. Read more.
On Approval of Inventory Rules. Read more.
On the approval of the work of the Cashier and the execution of cash transactions. Read more.
In conducting your business, you must keep records in accordance with the requirements for the management of the accounting of limited liability of legal entities. The accounting can be managed by the entity’s structural unit or a chief accountant (accountant) and a contractual accounting service provider.
Law on Accounting. Read more.
Business Accounting Standards. Read more.
Law on the Financial Reporting of Enterprises. Read more.
On Approval of Inventory Rules. Read more.
On the approval of the work of the Cashier and the execution of cash transactions. Read more.
If a person who has a certificate of individual activities are not subject to VAT, and then records are managed in accordance with the cash accounting principle, i.e., the revenue is recognised at the time of their receipt. If the person who has to individual activities under the memo is a VAT taxpayer, accounting is managed in accordance with the principle of accrual accounting, i.e. the (revenue is recognised when it is earned, regardless of receipt of revenue). A resident of applying the cash accounting principle and applying the accrual accounting principle must complete individual revenue and expenditure activities of the journal.
Suitable cash registers that are included in the Tax Authorities in the list of authorized cash registers and sales (service provision) vending machines in the Republic of Lithuania are available from companies trading there. A list of suitable cash registers (suitable cash registers are devices that are in compliance with the technical requirements and included in the VMI list; the cash registers not listed or already excluded from the cash register are not usable), and the names of the companies that sell them are published by the STI on their website. You can buy a cash register with a new one, used or leased from cash registers.
Cash registers and their prices:
- New from 144 Eur
- Used from 30 Eur
- Rent for months from 70 Eur
Cash registers are required to be trained to work on the cash register (including the completion of a technical passport and registration of the cash registers in the territorial State Tax Inspectorate and the proper programming thereof) and its users to work with the cash register. Most cash registers also offer their services. The said works are usually included in the sales price of the cash register. You can read more about cash registers on the VMI page.
Each job has job descriptions. Permanent instructions must be accumulated in one place – in the job descriptions and include all positions and specialties. They must contain a description of the work content (what must be done) and work standards (as they should be done).
- An employee can work under a fixed / indefinite contract, which must be written.
- The recruitment process starts with the application for employment and the signing of the employment contract.
- The employee must start work on the day the work starts on the contract.
- Required Documents:
- Valid identity card;
- health attestation;
- education, vocational education and training (if labor laws involve the admission to work with a particular education or vocational training, state of health);
- the birth certificate of the child’s minor;
- the birth certificate, the school where the student is studying, as well as the written consent of one of the parents or other child’s representative in accordance with the law, and the permission of the doctor who supervises the child’s health, if a minor is taken from work from the age of fourteen to sixteen years.
- It is necessary to inform Sodra about the beginning of the person’s work no later than one working day before the scheduled start of the work.
- At the latest before the start of work, the employer must familiarize himself / herself with the employee’s instructions on safety and health and safety and fire safety.
More information can be found here.
- Instruct staff on fire safety issues and place them in the fire safety briefings at the workplace in the logbook. (Firefighting staff briefing provides knowledge to help employees properly deal with the fire.) Workers need to be instructed before starting work and then every year. The introductory coaching must be registered in the registration dossier for introductory (general) fire safety briefings, and repeated – in the firework safety briefings at the workplace in the logbook.
- To report on the date of commencement of the insured state social insurance. When you are recruiting a new employee who is employed for the first time, you must notify the territorial office of the State Social Fund Board (SODRA), where your account as an insurer is being carried out on the commencement of the state social insurance coverage of the insured.
The employment contract ends:
- termination of it in accordance with the provisions of the Labor Code of the Republic of Lithuania and other laws;
- liquidation of the employer without the successor of the rights;
- when a worker is dead;
- termination of employment contract by agreement of the parties;
- termination of employment contract;
- termination of the employment contract by the employee’s statement;
- termination of an employment contract due to circumstances beyond the control of the employee;
- termination of an employment contract on the initiative of the employer when the employee is not at fault.
Most businesses require initial investment at the start of a business for equipment, raw materials or installation of premises. If your own resources are not enough, you can search for additional funding from various sources – the Labor Exchange, municipal business financing funds or EU support funds. You can find more information on possible sources and methods of support here: http://www.verslilietuva.lt/lt/verslo-pradzia/world-finance-sources
Marketing – A system of measures involving a product or service path from its idea to the user. Traditionally, marketing is considered to consist of four elements. This is the idea of a product or service, its development, pricing, distribution, and the design and implementation of sales promotion actions. All four factors are important in marketing activities.
More information here.
