Rounding of cash payments

From 1 May 2025 onwards, all merchants (service providers) must apply rounding to the final amount of the shopping cart when the customer opts to pay in cash, as stipulated in the Republic of Lithuania Law on the Rounding of Cash Payments.

When rounding is applied, 1 and 2 cent coins can still be used for payment, provided that they are used to pay the rounded amount.

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What is subject to rounding?

Rounding applies to:

cash payments – the total amount due for goods (services) purchased at the same time, irrespective of the number of goods (services), when paying in cash,
an amount of a cash refund – an amount in cash refunded to the buyer for the returned goods, services not provided or substandard services.

If a single good (service) is purchased or a cash refund is paid for a single good (service not provided, substandard service), rounding is also applied.

Rounding does not apply to the price of each individual item in a shopping cart of goods (services) purchased at the same time. Individual prices will remain unchanged.

Rounding does not apply in the following cases:

when making non-cash payments, i.e. paying by payment card, gift voucher (check, card), social card or using money accumulated on a loyalty card,
for online shopping, when making non-cash payments,
wages, salaries, and other emoluments related to employment, including daily allowances and allowances to reimburse actual travel, accommodation and subsistence costs incurred during posting,
pensions and other social security benefits (even the ones paid in cash),
taxes, tax-related sums, levies, fines, and other pecuniary obligations imposed or determined in accordance with the Code of Administrative Offences and other laws,
amounts of a currency being exchanged,
amounts of cash remittances*,
amounts of cash deposited in and withdrawn from a payment account,
lottery cash payout amounts,
where the total amount due for the goods returned, goods (services) purchased or sold at the same time is less than 5 cents. However, when part of the amount is paid by payment card, gift voucher or social card, and the remainder, paid in cash, is less than 5 cents, rounding is applied.

* Remittance is considered a cash transfer from a money sender to a money recipient using the services of a payment service provider (e.g. Western Union, AB Lietuvos paštas, Paysera LT, UAB, UAB Perlas Finance, etc.), i.e. when a natural person sends EUR 100.11 to another natural person, the latter natural person must receive the exact unrounded amount, EUR 100.11. In the context of rounding, payment for various services is not considered a cash remittance, therefore, rounding is applied to the amounts of these payments. Rounding should be applied in the case of a cash transfer from a natural person to a bank account of a legal person or a natural person in return for goods or services. Rounding should not be applied in the case of a cash transfer from a natural person to a bank account of a legal person other than in return for goods or services.

Who must apply rounding?

Rounding must be applied by all natural and legal persons accepting cash payments:

merchants (including pharmacies, gas stations, market traders, etc.),
service providers (including providers of medical and healthcare services, legal services (notaries, lawyers, bailiffs, etc.), financial, payment, catering, postal, beauty, entertainment and leisure, accommodation, ride-hailing services, etc.),
public service providers (including medical and healthcare, public transport service providers, libraries, swimming pools, museums, etc.).

Rounding is applied to all cash payments.

Cash payments must be rounded when:

a natural person purchases goods (services) from a legal person,
a natural person purchases goods (services) from a natural person,
a legal person purchases goods (services) from a legal person,
a legal person purchases goods (services) from a natural person.

How is rounding applied?

Rounding must be applied in accordance with the procedure stipulated in the Republic of Lithuania Law on the Rounding of Cash Payments. The total amount due is rounded to a multiple of 5: is rounded up or down to the nearest 5 cent, depending on whether the last digit is closer to 0, 5 or 10. More precisely, rounding is done as follows:

the total amount due ending in 1 or 2 cent is rounded down to 0;
the total amount due ending in 3 or 4 cents is rounded up to the nearest 5;
the total amount due ending in 6 or 7 cent is rounded down to 5;
the total amount due ending in 8 or 9 cent is rounded up to the nearest 10.

Rounding is neutral for the seller and the buyer. With rounding, the buyer pays 1 or 2 cents less or 1 or 2 cents more than the calculated total amount due when paying in cash. In the long run, the differences even out.

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Why is rounding introduced?

Rounding of cash payments is important for efficiency, sustainability, and convenience purposes:

in most cases, rounding will eliminate the need to give change in 1 and 2 cent coins, to mint these coins (or purchase them from other countries) and to issue them into circulation,
the costs of using cash for citizens, businesses and the state will be reduced,
the environmental impact of cash (reducing the release of metals (copper and steel) and by-products of production and administration (CO₂, plastics) into the environment) will be reduced,
using cash will become more convenient.

Did you know that before rounding...

more than €2 million worth of 1 and 2 cent coins have been lost by people. About one third of a million euros are lost every year;
13 train carriages is the equivalent of small coins in circulation. They weigh 880 tonnes. Each year, the amount of these coins in circulation increases by 90 tonnes (by more than 1 train carriage);
the vast majority of 1 and 2 cent coins are used for payments only once: as many as two-thirds of 1 and 2 cent coins put into circulation do not return to Lietuvos bankas (compared to only one-third of the other coins do not return). Coins are lost or end up in our piggy banks, pockets, drawers, cars, and fountains. As 1 and 2 cent coins are needed for change at points of sale, Lietuvos bankas has to mint (or purchase them from other countries) and issue them continuously;
the minting, transporting and handling of 1 and 2 cent coins use resources, generate pollution and waste;
the costs of producing these coins are bigger than their nominal value.

Will rounding mean that it is no longer possible to pay with 1 and 2 cent coins?

After rounding is introduced, 1 and 2 cent coins will remain a legal tender, i.e. they can be used to pay the rounded amount and to give change. Lietuvos bankas recommends giving change in 1 and 2 cent coins only if there are no euro cent coins of a higher denomination in the cash register. This would contribute to a faster decrease in the number of coins in circulation.

The decision to withdraw coins from circulation is made at the European Union level, not at the national level. No such decision has been made yet. The Republic of Lithuania Law on the Rounding of Cash Payments does not regulate the use (or withdrawal) of the denomination of euro coins.

Retailers (service providers) cannot refuse to accept 1 and 2 cent coins when they are used to pay the rounded amount. However, a retailer (service provider) is not obliged to accept more than 50 coins per payment.

If you have accumulated some 1 and 2 cent coins, you can:

use them to pay for goods (services) in cash,
bring them to the cash office of Lietuvos bankas in Vilnius and Kaunas and exchange them for coins or banknotes of another denomination¹,
exchange at credit institutions providing this service.

¹To exchange coins at cash offices of Lietuvos bankas, please bring along your identity document (passport, identity card or driving licence issued in a country of the European Economic Area).

A person can exchange around 500–1,000 coins per day for banknotes –as many as can fit in a special one-litre container. They are exchanged immediately. A person may exchange an unlimited number of euro coins per day, and the money will be transferred to an account indicated by the customer within 15 working days. Natural and legal persons wishing to exchange coins will need to submit a written application, which can be filled in at the cash desk or in advance (application form).

What is the number of 1 and 2 cent coins in circulation?

There are more than 300 million 1 and 2 cent coins in circulation in Lithuania. These coins account for 59% of the total number of coins in circulation, but only 3% in terms of value (€4.8 million). In Lithuania, the number of 1 and 2 cent coins in circulation grows by an average of 30 million coins each year.

Breakdown of coins in circulation by their denomination

Number of coins in circulation

What is the experience of other countries?

Euro area countries have taken different approaches to the use of 1 and 2 cent coins: the Netherlands, Belgium, Finland, Ireland, Italy, Slovakia and Estonia apply rounding of the total amount of the shopping cart, while 1 and 2 cent coins continue to circulate in other euro area countries. Rounding is also applied in non-euro area countries, such as Sweden, Norway, Denmark, Canada, and Australia.

In the euro area countries where rounding is applied to cash payments, the final amount due is rounded to the nearest 5 cents. Despite rounding, 1 and 2 cent coins are legal tender in these countries, i.e. are still used for payment.

Rounding saves money for citizens, businesses and the state, makes cash more convenient, and helps countries live more sustainably.

What are the key legal acts on rounding of cash payments?

Any questions?

If you have any questions, please do not hesitate to contact us!

Lietuvos bankas (phone: +370 800 50 500, e-mail: tl.bl@ofni) advises on rounding of cash payments, the use and exchange of 1 and 2 cent coins.
The State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania (phone: +370 5 260 5060, enquiry via Mano VMI) advises on the effect of rounding on taxes and on the use of cash registers.
The Authority of Audit, Accounting, Property Valuation and Insolvency Management under the Ministry of Finance of the Republic of Lithuania (phone: +370 5 212 5464, e-mail: tl.tnva@ofni) advices on rounding accounting.
The State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania (phone: +370 5 260 5060, enquiry via Mano VMI) advises on rounding accounting for self-employed.

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Last update: 23-01-2025