Updates on VAT rates in Lithuania

Lithuania has expanded the application of the reduced 5% VAT rate to include robotic surgical instruments and accessories, as clarified by VMI Letter No. RM-8737 (March 2026), lowering the tax from the standard 21%. The reduced rate applies only if the equipment is used within manufacturer-specified limits, ensuring proper compliance and use conditions.

The Lithuanian State Tax Inspectorate (VMI) has expanded the list of medical equipment eligible for a reduced 5% VAT rate.

The update, officially clarified in a new guidance letter (No. RM-8737) dated March 18, 2026, now specifically includes high-tech surgical instruments and accessories used in robotic surgery systems. Previously, many advanced surgical tools were subject to higher tax rates. By moving these robotic components to the 5% category under Article 19(4) of the VAT Law, the government aims to lower the financial burden on hospitals and clinics investing in "state-of-the-art" technology.

The reduced rate only applies if these robotic instruments and accessories are used within the manufacturer's specified limits. This means that single-use or limited-use robotic tools must follow strict disposal or maintenance cycles to qualify for the tax break.

In summary, the new VAT rate of 5%, reduced from the standard 21%, applies to robotic surgical instruments and system accessories. Official Reference is VMI Letter No. RM-8737 (March 2026).