E-Declaration System in Lithuania (EDS Lithuania)

Published on: 17/09/2007

The E-Declaration System in Lithuania provides an option for taxpayers to submit electronically the State Tax Inspectorate administered tax returns and other related documents, and receive information regarding the acceptance of such documents from the STI. For tax administrators, it allows to process tax return data more effectively. With the implementation of the EDS, tax procedures have become less complicated and less time and resource consuming. Now taxpayers in Lithuania deliver a number of procedures on the basis of the one-counter principle and without having to leave their place of work.

Policy Context

The Resolution of the Government of the Republic of Lithuania of 31 December 2002 approved the e-Government concept and stated the position towards the eGovernment phenomena in Lithuania. The concept aims to improve (with the help of digital technologies) the delivery of public services to state and municipal institutions, residents of the Republic of Lithuania and business representatives. The concept takes into consideration the specific conditions of the Republic of Lithuania and the European political initiative regarding electronic government. The Law on Personal Data Protection of the Republic of Lithuania aims to protect the inviolability of private life regulating the relations that emerge while processing personal data in automated and non-automated methods. The law sets out the rights of natural persons and data subjects, the procedure for the protection of these rights as well as the rights, obligations and responsibility of legal and natural persons working with personal data. The Electronic Declaration System Regulations of the State Tax Inspectorate (STI) approved on 15 February 2006 regulates the purpose of the electronic declaration system (EDS), the legal basis for the design of the system, its management, data suppliers, objects and aims. It also provides organizational, informational and functional structure, defines sources of accumulated data and sets out the requirements for data protection as well as the construction, reorganization, and elimination of the system.

Description of target users and groups

Taxpayers. 59% of Lithuanian residents are potential taxpayers.

Description of the way to implement the initiative

Appealing to the experience of private and public sectors, the EDS project employed risk management and project planning methodologies, which helped anticipating and preparing for possible interruptions or other type of problems. A regularly analysed, supplemented, and revised risk management plan (risk register) helps to identify obstacles for the effective implementation of not only EDS but also other IS of the STI. Besides, this tool has helped the STI and the service provider to remain flexible, to promptly react to problems and to be ready to properly and effectively come up with required solutions. Project partners (specialists of Microsoft Consulting Service) were involved in the project management. The Microsoft Solutions Framework (MSF) method was used for the project management. This reduced project risks and increased a possibility of successful implementation as well as helped ensuring correspondence of technological solutions and infrastructure to the needs and aims of the STI. Multi-channel issues: A list of returns and other documents that can be currently submitted through the EDS is supplied at the website http://deklaravimas.vmi.lt. Currently the EDS supplies 49 different document forms. In order to submit tax documents electronically, an agreement for electronic submission of returns has to be signed with the STI. This agreement sets out the rights and responsibilities of the signing parties. A document may be electronically submitted in the following ways: - A pre-filled file can be sent via the EDS portal; or - Interactively (on-line) filled-in in the EDS portal; or - Drafted and sent electronically; or - Drafted and submitted in an electronic media.

Main results, benefits and impacts

The EDS has become a valuable instrument for all taxpayers (both legal and physical entities) to accomplish declaration procedures in the most convenient way and increase the efficiency of tax collection. During the past 3 years 10 million documents have been submitted in the form of the EDS electronic data and 3 million electronic info messages were sent to users using the system. Additionally, the following goals have been achieved: - To provide high-level services for taxpayers as well as multiple tools and methods for submission of returns, including electronically through the Internet and e-mail, manually, and based on e-signature; - To develop an electronic declaration environment for both taxpayers and employees of the STI; - To improve the internal process of the STI for registration, storage, and processing of submitted returns and calculation of refundable overpayments, etc. - To improve the efficiency of tax collection by provision of electronic means; - To promote the usage of modern information technologies within Lithuanian society.

Return on investment

Return on investment: Not applicable / Not available

Track record of sharing

The growing recognition of the EDS has encouraged the development of similar e-services by other public institutions, i.e. the State Enterprise Centre of Registers. The ABBYY eFormFiller tool is also used by the Department of Statistics of the Republic of Lithuania (www.std.lt) for provision of statistical forms as well as SODRA. Therefore, the EDS has contributed to promote the development of the information society in Lithuania.

Lessons learnt

Lesson 1. As EDS and other IS were created, the STI had to adapt its internal structure, which was no longer able to effectively function. The restructurization of the inspectorate helped to achieve a better distribution of areas of responsibility as well as to adapt to new conditions. Lesson 2. In order to ensure an efficient labour system in the STI as well as the active involvement of taxpayers in the EDS services, the STI had to implement several information and training campaigns. Lesson 3. The EDS services for taxpayers are just the tip of the iceberg, because the greater share of functions of this system are used by the STI specialists to achieve a more efficient and transparent work. Therefore, high data base reliability, uninterrupted operation and data security requirements have to apply to all the systems.

Scope: International, Local (city or municipality), National, Regional (sub-national)