Vilnius, Jan 2
The number of self-employed foreigners avoiding taxes has been on the rise in Lithuania in recent years, according to the State Tax Inspectorate (VMI).
The majority of those failing to meet their tax obligations are taxi drivers and couriers, Xinhua news agency reported quoting local radio broadcaster LRT.
According to VMI data, in 2023 there were 15,800 foreigners in Lithuania who registered their individual activity. Of these, 12,400 filed income tax returns, but 2,200 did not fulfill their tax obligations. A further 3,300 foreigners did not file value-added tax (VAT) returns, although they were obliged to do so.
While the VMI does not yet have data for 2024, data from previous years show that the number of foreigners in Lithuania who are both self-employed and do not pay income tax is increasing.
According to VMI, foreigners who avoid income taxes most often work as couriers, taxi drivers, or in the fields of construction completion and finishing, as well as beauty services.
According to Piret Pert, Wolt's Communications Manager for the Baltic States, the company is providing monthly information to VMI on the income of all couriers, restaurants, and other traders operating through its food delivery platform.
"Therefore, VMI has up-to-date information on 100 per cent of the revenue generated through Wolt's platform. We have done everything we can to ensure that the relevant Lithuanian authorities have an accurate picture of all the income earned through our platform," Pert told LRT.
According to Laimonas Jakstys, Operations Manager for Bolt's ride-hailing services, foreign nationals currently account for around 20 per cent of the drivers who use the platform, with around half of them being Ukrainian.
Over 99 per cent of foreigners who provide ride-hailing services via the Bolt platform are not obliged to register for VAT, as the total value of their services per year does not exceed 45,000 euros ($46,825), he noted.
"To make it as easy as possible for them to do so, we regularly remind drivers by emails and other means of communication about tax filing deadlines and other important details. In addition, for the last few years, Bolt has been declaring the income of drivers who have used the platform to the tax authorities, making the declaration process easier for drivers," Jakstys told LRT.
Linas Mazgeika, a representative of the Courier Association in Lithuania, said platforms, such as Wolt and Bolt, should take more responsibility for controlling partner couriers and drivers and informing them about their tax obligations.