- Lithuania will implement two reduced VAT rates of 5 percent and 12 percent starting 1 January 2026
- Amendments to the VAT law were passed with 77 votes in favor, 19 against, and 16 abstentions
- Reduced VAT rate for books and non-periodical publications will decrease from 9 percent to 5 percent
- Reduced VAT rate for accommodation, passenger transportation, and arts and cultural events will increase to 12 percent
- Reduced VAT rate for district heating, hot water supply, and firewood will be abolished, increasing the rate from 9 percent to 21 percent
- Minister of Finance Rimantas Šadžius stated the exemption was inappropriate and not addressing a specific social issue
- Government plans to raise asset limits for heating compensation and other utility-related benefits
- Changes are part of a broader tax amendment package for additional defence funding
Source: sc.bns.lt
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
