Lithuania plans to adjust several VAT rates effective January 1, 2026, pending approval by the Seimas by July 2025. Key changes include increasing VAT on district heating and certain services to 21% or 12%, reducing the VAT on books to 5%, and introducing a new 10% tax on non-life insurance policies.
Updates of VAT rates in Lithuania
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Lithuania
Author: Nikolina Basić
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Fiscal subject related
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Content accuracy validation date:
20.05.2025
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15:24h
Lithuania is preparing to revise its value-added tax (VAT) rates, with certain changes expected to take effect on January 1, 2026. The adjustments will impact district heating, books, accommodation services, and insurance policies, among others.
Under the proposed changes, the VAT on district heating, hot water, and firewood will increase from the reduced 9% rate to the standard 21% rate. Meanwhile, books and non-periodical publications will see a decrease in their VAT rate from 9% to 5%, aiming to make literature more accessible.
Preferential VAT rates for accommodation services, passenger transport, and cultural events will rise from 9% to 12%, reflecting an effort to balance tax revenues while maintaining support for the tourism and entertainment industries.
Additionally, a new 10% tax will be introduced on all non-life insurance policies, with the exception of mandatory civil liability insurance for personal vehicles.
The changes are contingent on approval by the Seimas before July 1, 2025, after which they will be officially implemented at the start of the following year—January 2026.
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