New Decisions on VAT Relief in Lithuania

After a long period of discussions, Lithuanian policymakers have agreed on some VAT relief measures to help the population and sectors in need during the economic slowdown. The Parliament of Lithuania has updated the paragraph 3 of the Article 19 as relates to VAT reductions.

The updated VAT rates will come into effect from 1 January 2023, and feature reductions from the standard 21% VAT rate.



Here are the approved VAT reliefs:

A temporary VAT reduction for general admission to events — performances, sporting events, and similar. It is an extension of a previous VAT relief measure. The 9% reduced VAT rate will be in place until the end of June 2023.
A year-long VAT reduction for catering and takeaway services. The lawmakers extended a previous VAT reduction. The VAT has been reduced to 9% until the end of calendar year of 2023. It is important to note that this reduction does not cover alcoholic drinks.
Permanent VAT reduction for admission to artistic and cultural events. The VAT was indefinitely reduced to 9%.
Permanent VAT reduction for accommodation. The VAT was indefinitely reduced to 9%.
Permanent VAT reduction for e-books and other non-periodical electronic press. The VAT was indefinitely reduced to 9% after extending a previous temporary VAT relief.
Other goods and services with reduced VAT included in the Article 19 are heating and hot water for residential households, printed books, passenger transportation, and firewood.

Corporate Tax