Vilnius, Jan 2 (NationPress) The incidence of self-employed foreigners evading taxes has surged in recent years in Lithuania, according to the State Tax Inspectorate (VMI).
The bulk of individuals neglecting their tax responsibilities includes taxi drivers and couriers, as reported by the Xinhua news agency, which cited the local radio station LRT.
As per VMI statistics, in 2023, there were 15,800 foreigners in Lithuania who registered for individual activities. Out of these, 12,400 submitted their income tax returns, while 2,200 failed to meet their tax obligations. Additionally, 3,300 foreigners did not file their value-added tax (VAT) returns, even though it was mandatory for them.
Although VMI does not yet possess data for 2024, trends from prior years indicate a growing number of foreigners in Lithuania who are both self-employed and neglecting to pay income tax.
According to VMI, the majority of foreigners who evade income taxes typically work as couriers, taxi drivers, or in sectors such as construction and beauty services.
Piret Pert, the Communications Manager for Wolt in the Baltic States, mentioned that the company regularly shares monthly revenue information with VMI regarding all couriers, restaurants, and other businesses utilizing its food delivery service.
"Consequently, VMI has up-to-date knowledge of 100 percent of the revenue generated by Wolt's platform. We have taken all necessary steps to ensure that the relevant Lithuanian authorities have a precise understanding of all income earned through our platform," Pert stated to LRT.
Laimonas Jakstys, the Operations Manager for Bolt's ride-hailing services, indicated that foreign nationals currently represent approximately 20 percent of the drivers on the platform, with around half of them being Ukrainian.
Over 99 percent of foreigners providing ride-hailing services through the Bolt platform are not required to register for VAT, as their annual service value remains below 45,000 euros ($46,825), he elaborated.
"To facilitate compliance, we routinely remind drivers via email and other communication methods about tax filing deadlines and critical details. Additionally, for the past few years, Bolt has been reporting the income of drivers using the platform to tax authorities, simplifying the declaration process for them," Jakstys explained to LRT.
Linas Mazgeika, a representative of the Courier Association in Lithuania, stated that platforms like Wolt and Bolt should assume greater responsibility for monitoring their partner couriers and drivers, ensuring they understand their tax obligations.
