Changes of VAT rates in Lithuania announced

On December 30, the Lithuanian Parliament accepted Draft Bill No. XVP-90 for consideration. This bill proposes a preferential 9 percent VAT rate for essential food products and certain service sectors while explicitly excluding alcoholic beverages from this reduced rate. The Lithuanian government or an authorized institution will be responsible for establishing and updating the list of eligible food products. The new law is set to take effect on July 1, 2025, with the necessary implementing legal acts to be adopted by the Lithuanian government by April 30, 2025. This move aims to provide financial relief on essential goods and services, reflecting the government's commitment to supporting its citizens' cost of living.