What VAT rate will be defined for catering services in Lithuania?

In accordance with the current version of the VAT Act in Lithuania, we can say that the VAT rate for catering services is 9%. Importantly, this was introduced as a benefit for catering services. But importantly, the VAT rate for catering services and takeaway food provided by restaurants, cafes, and similar catering establishments, with the exception of alcoholic beverages and services or parts of services related to alcoholic beverages, is valid until December 31, 2023. But, from 2024, the VAT rate will be 21%, and this will be programmed in cash registers.

According to the description of technical requirements for cash registers, approved by the head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania in 2022, On April 27, by order no. VA-40, "Regarding the approval of the description of technical requirements for cash registers," clause 25.2, only after the daily (shift) fiscal report (Z) is printed and/or generated can tax (VAT) rates be changed according to the cash register and rules for the use of direct connection computer network terminals, approved by the head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania in 2003. On September 18, by order no. V-255, "Regarding the rules for the use of cash registers and direct connection computer network terminals and approval of the FR1156 form of the decision to deregister the cash register," the provision of point 20 can only be changed by the cash register servicing company. Catering establishments now have 21% programmed in the cash register. Cash registers will not require additional reprogramming of the VAT rate.

Importantly, for alcoholic beverages, there is a requirement: the cash registers of all trade and public catering entities selling alcoholic beverages must form and print information on the number of alcoholic beverages sold per day.