Lithuania updates VAT Law with new reduced rates and exemptions

Lithuania has proposed amendments to its VAT law introducing a 12% reduced rate for accommodation, public transport, cultural visits, and household energy supplies. The draft also extends reduced VAT to printed and electronic books and educational publications, excluding those with mainly advertising, music, or video content

Lithuania has amended its Value Added Tax (VAT) law to introduce new reduced rates and clarify exemptions for certain goods and services. Currently, these changes are in the draft version of the regulation.

The updated law sets a reduced VAT rate of 12% for:

·         Accommodation services

·         Passenger transport on regular routes

·         Visits to cultural institutions

It also applies the reduced rate to:

·         Heating energy for homes

·         Hot water supply

·         Cold water used for heating

In addition, printed and electronic books, as well as non-periodical publications like textbooks, encyclopedias, dictionaries, maps, and educational materials, now benefit from the lower VAT rate.

However, publications with more than 80% advertising content or those mainly featuring music or video are excluded from these benefits.