Lithuania to Increase Reduced 9% VAT Rate to 12% Starting January 2026

Lithuania will increase its reduced VAT rate from 9% to 12% starting 1 January 2026 to support higher defence spending, while maintaining 21% standard and 5% reduced rates.

Affected items include accommodation, cultural events, catering, and digital publications. District heating jumps to 21%. The move reverses several 2023 temporary VAT cuts introduced to counter inflation.