VATupdate

Proposal: Food products exempted from VAT (instead of 21%)

Current version of Article 19:

Article 19 VAT rates

1 . In cases of supply of goods and provision of services not specified in Paragraphs 3, 4 and 5 of this Article and Chapter IV of this Law, the standard VAT rate shall apply.

2 . The standard VAT rate shall be applied to imported goods not specified in Paragraph 3 of this Article and Chapter V of this Law.

3 . A reduced VAT rate of 5 percent applies to:

1 ) regular passenger transport routes established by the Ministry of Transport and Communications or its authorized institution or municipalities, passenger transport services, as well as passenger luggage transport services specified in this clause;

2 ) books, newspapers and magazines, except for publications of an erotic and violent nature, which have been recognized as such by an institution authorized by legal acts;

3 ) medicines and medical goods (foodstuffs for special medical purposes for children, foodstuffs for special medical purposes and body and dental care products for special medical purposes, medicinal products used in the health system, medical devices, compensatory equipment for special purposes, medical aids and personal care products) ). The list of medical goods referred to in this paragraph to which the reduced VAT rate is applied shall be approved by the Government of the Republic of Lithuania;

4 ) hotel-type and special accommodation services provided in accordance with the procedure established by legal acts regulating tourism activities;

5 ) for ecologically clean food products (requirements for ecologically clean food products shall be established by the Government of the Republic of Lithuania);

6 ) fresh chilled meat and edible offal (except poultry meat and edible offal thereof), if they comply with the standards approved by the Lithuanian Standardization Department under the Ministry of Environment of the Republic of Lithuania;

7 ) fresh chilled, frozen, deep-frozen poultry meat and edible offal thereof, if they comply with the standards approved by the Lithuanian Department of Standardization under the Ministry of Environment of the Republic of Lithuania.

4 . The reduced VAT rate of 9 percent is applied to residential construction, renovation, insulation and design services, construction of engineering networks and land management services, which are paid for from the state and municipal budgets, preferential loans provided by the state and state special funds.

5 . The VAT rate of 0 per cent shall be applied in the cases of supply of goods and provision of services specified in Chapter VI of this Law.

Proposed change

 Article 1 . Amendment of Article 19

Add the following point 4 to Article 19 (5):

” 4 ) foodstuffs . ”

Source e-seimas.lrs.lt

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