Changes in the Updated Classification of Economic Activities
As of 1 January 2025, a new version of the Classification of Economic Activities (EVRK Rev. 2.1) has come into effect in Lithuania. This updated classification reflects economic activities undertaken by natural persons and legal entities, revised to align with the economic realities that have evolved over the years. In the updated EVRK version, some activity codes and names have been changed.
While codes in statistical and business registers are updated automatically, enterprises and individuals engaged in self-employment are encouraged to verify that their activities are classified under the appropriate category.
The State Data Agency (Statistics Lithuania) emphasizes that the Classification of Economic Activities (EVRK) is primarily used to compile and compare statistical data at the national and international levels. It is also relevant for all individuals and legal entities engaged in business activities, as activity codes should be specified when registering one or more activities.
“The previous version of EVRK was approved quite a while ago, in 2008. Since then, the economic environment has fundamentally changed, new activities have emerged, and technologies have advanced. Some activities have become obsolete, such as fur animal farming, which is now banned. Meanwhile, cricket farming has gained popularity”, explains Lina Kulionienė, Head of the Standards Division at the State Data Agency. “The updated classification better reflects economic sectors and activities. Moreover, EVRK is linked to the European Union and global economic classifications, allowing statistical data to be compared. Therefore, as international classifications were updated, EVRK also had to be revised.”
EVRK Reflects Current Trends in Economic Activities
According to L. Kulionienė, Head of the Standards Division, the new EVRK places greater emphasis on circular economy, ecology, renewable energy, information technologies, emerging fields in medicine and health, as well as the defense industry. Intermediation services are highlighted across all sectors. Significant changes have been made in classifying trade activities: previously, these were categorized based on product groups and the location of trade.
“Online commerce, which is now a natural part of life for everyone, has fundamentally changed the situation. As a result, the classifier no longer divides trade activities based on location but solely on product groups”, notes L. Kulionienė.
The financial technology sector also draws interest. It was initially thought that significant changes would be required in the financial technology sector. However, it was concluded that the use of financial instruments is not a decisive criterion for classifying financial activities, as only the technologies differ. Thus, financial activities such as crowdfunding platforms, cryptocurrency trading, and the tokenization of digital assets are not classified into separate categories in the updated EVRK but are described in explanatory notes to facilitate (clarify) their classification.
The representative of the Agency adds that EVRK is based on the European NACE classification, so some new activities may not be relevant to our country. However, differences exist in the subcategories at the national level. While updating EVRK, the State Data Agency consulted institutions on which national needs should be highlighted in the subcategories, and some of these suggestions have been incorporated into the new EVRK edition.
Why Should Businesses and Individuals Pay Attention to These Changes?
"Our message to businesses and individuals engaged in economic (business) activities is as following: do not be surprised by the changes in EVRK, and there is no need for urgent action as the activity code updates happen automatically. Part of enterprises or individuals might not even notice the changes since their activity codes will remain the same. However, in many cases, where, for example, an activity was previously categorized as one but is now split into several, we recommend verifying whether the new economic activity code has been assigned correctly and whether the primary activity is accurately reflected”, advises L. Kulionienė.
Enterprises often engage in multiple activities and are required to declare their main activity (and sometimes additional ones) to relevant institutions. These activity codes may be needed when submitting statistical reports, completing applications (e.g., for grants/supports), or declaring information to the State Tax Inspectorate (STI), etc.
“Customers do not need to worry about EVRK codes, as the majority of codes will be updated automatically, so no additional actions will be required from them. In cases where a customer needs to clarify their activity code, we will inform them personally, and all necessary changes can be made by logging into the My STI system (a convenient and simple STI electronic service platform). For customer convenience, we will provide step-by-step instructions on how to do this independently, and if any questions arise, we will offer consultations”, says Martynas Endrijaitis, Deputy Head of the State Tax Inspectorate (STI).