Capital
Vilnius
Currency
Euro
Languages
Lithuanian
Population size
2.7M
Average Monthly Salary
€1000
EU
Since 2004
Region
Northern-Europe
Gift Giving Norms
Small, thoughtful items common
Major Corporate Gift Days
Christmas, Independence Day
Customs Complexity
Medium
VAT - Standard Rate
21%
Duty Free Threshold
€150
Ave Duty Rate
2%
1. Employee Merch vs. Gifts
Under Lithuanian law, non-cash benefits provided to employees can be deemed taxable if they serve no clear work purpose. The State Tax Inspectorate (Valstybinė mokesčių inspekcija, VMI) determines whether items are genuinely required for job functions or personal perks.
1.1 Merchandise for Employees
Work-Related (Generally Non-Taxable)
Uniforms & Essential Tools
If branded clothing or gear is integral to day-to-day tasks (e.g., mandatory uniform, safety equipment), it is typically not considered a taxable benefit.
Branded Accessories
T-shirts, notebooks, or mugs featuring a noticeable company logo, consistently given to all staff, can often be viewed as part of the work environment rather than personal items.
Potentially Taxable Benefits
High-Value or Personal-Use Goods
Items like electronics, luxury apparel, or other products with little connection to everyday work might be seen as taxable income. The employer would then handle wage taxes and social contributions.
Frequent Gifts
Repetitive gifting throughout the year could be interpreted as disguised salary. Seek guidance if planning multiple merchandise distributions annually.
1.2 Gifts for Non-Employees (Clients, Partners, Event Attendees)
Tax & Deductibility
Gifts given for business promotion or relationship-building are commonly tax-deductible up to certain value thresholds. Regular or high-value gifts lacking a clear commercial rationale might invite scrutiny from VMI.
Compliance & Anti-Bribery
Lithuania enforces EU-aligned anti-corruption standards, especially concerning public officials. Always keep records of major or frequent gifts to protect against accusations of impropriety.
1.3 Marketing Merch
Items (e.g., T-shirts, tote bags, pens) distributed at fairs, conferences, or events are typically counted as marketing expenses, assuming appropriate documentation is maintained.
2. Shipping, Customs & Duties
2.1 Shipping
2.2 Importing
Import Duties & VAT
Goods from non-EU sources above certain thresholds (commonly €150) may incur customs duties plus Lithuanian VAT (21%) on (value + duties + shipping).
Documentation
A commercial invoice, HS codes, and product descriptions are crucial for smoother customs processing.
2.3 DDP vs. DAP
Delivered Duty Paid (DDP)
The sender covers import charges, simplifying the recipient’s experience.
Delivered At Place (DAP)
The recipient is billed for duties/VAT upon arrival, risking potential delays or surprise costs.
2.4 With Monday Merch
We operate from Rotterdam (the Netherlands), ensuring duty-free deliveries to Lithuania within the EU. We also advise on VAT compliance, keeping every step tax compliant.
3. Cultural & Local Etiquette
3.1 Gifting customs
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
6. Summary and Key Takeaways
6.1 Summary & Takeaways
7. Frequently Asked Questions
7.1 Questions & Answers
Does staff merch count as taxable income?
If it’s clearly personal, yes; if needed for work with branding, likely no.
Are promotional gifts deductible?
Yes, if they serve a legitimate promotional purpose and cost is documented.
Cultural focus?
Lithuanians prefer practical, understated gifts over showy or high-value ones.
