Lithuania's State Tax Inspectorate (STI) has issued guidance to clarify domestic VAT obligations in cases where a business involved in cross-border transactions with other EU Member States is required to register for VAT. The guidance is provided in the context of Directive (EU) 2020/285 on the special VAT scheme for small businesses, which is meant to reduce VAT obligations for small businesses engaged in cross-border supplies in the EU. In particular, the guidance clarifies that when a bus…