Lithuania is reviewing VAT law amendments that would increase the reduced VAT rate from 9% to 12% for services like accommodation, regular passenger transport, and cultural events starting January 1, 2026. A new 5% VAT rate is also proposed for printed and electronic books and certain non-periodical publications, down from the current 9%. The Parliament is expected to vote by July 1, 2025, and businesses should prepare for invoicing and compliance updates.
Lithuania proposes changes to VAT rates across sectors.
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Lithuania
Author: Nikolina Basić
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Fiscal subject related
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Content accuracy validation date:
23.06.2025
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09:12h
As a reminder, the Lithuanian Parliament is currently reviewing proposed amendments to the national VAT law, all with the goal to adjust tax rates in the tourism, transportation, cultural services, and publishing sectors. While the standard VAT rate of 21% remains unchanged, modifications to reduced VAT rates are on the table.
According to the proposed revisions to Article 19 of the Lithuanian VAT Law, the reduced VAT rate will increase from 9% to 12% starting January 1, 2026. This new rate would apply to
· Accommodation services
· Passenger transport services on regular routes, including luggage transport
· Admission to cultural institutions and events
Additionally, the amendments introduce a reduced 5% VAT rate for printed and electronic books, as well as non-periodical publications such as textbooks, encyclopedias, dictionaries, children's picture books, sheet music, and maps. This marks a reduction from the current 9% rate. However, publications dominated by advertising (over 80%), or those primarily focused on music or video content, will not qualify for the reduction.
The Lithuanian Parliament is expected to vote on these amendments before July 1, 2025. While the final decision remains pending, businesses should prepare for potential adjustments to their invoicing, accounting, and reporting systems.
Taxable entities must stay informed as discussions progress to ensure they comply with any new VAT regulations.
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