Lithuania will implement a mixed change to its VAT rates on Jan 1, 2026: one reduced rate goes up, and another goes down. Key points: [vatcalc.com]
- The main reduced VAT rate, currently 9%, will be raised to 12% for several categories. Affected are passenger transport, accommodation (hotel services), restaurant and catering services (food), and cultural and sports event tickets – essentially, the sectors that had temporary 9% VAT during recent years. From 2026 onward, these will be taxed at 12%. [vatcalc.com]
- Meanwhile, medicines, medical devices, books and printed publications that were at 9% will get a super-reduced 5% rate. The government decided to cut VAT on these essential goods to make them more affordable. (This 5% is a new rate for Lithuania, leveraging an option under EU rules.) [vatcalc.com]
- Additionally, district heating supply for homes, which had been temporarily 9%, will revert to the standard 21% rate in 2026. (The 9% heating concession ends.) [vatcalc.com]
Lithuania’s Parliament (Seimas) passed these changes as part of the 2026 budget and a broader tax reform aimed at increasing defense funding (after Russia’s invasion of Ukraine). The law was adopted in June 2025 and signed by the President by July 2025. Official confirmation: The Finance Ministry announced the new rates, and local news (Delfi) reported the Seimas approval on June 17, 2025. [vatcalc.com], [vatcalc.com]
- New rates: 12% reduced (for tourism, hospitality, passenger transport, etc.); 5% reduced (for prescription medicines, books, periodicals). Standard rate remains 21%. [vatcalc.com]
- Old rates: 9% for those items previously; (heating from 9% back to 21%).
- Status: Enacted – approved by Parliament and signed into law (June 2025). [vatcalc.com]
- Join our Linkedin Group on ”VAT Rates – Legislative changes”, click HERE
- Global upcoming VAT rate changes – VATupdate
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