Lithuania Introduces Changes to the Applicable VAT Rates for Hospitality, Ebooks, Accommodation and Events

November 28, 2022

The Lithuanian Parliament approved an amendment to the VAT Act on November 22, 2022, including changes to the application of the 9% reduced VAT rate.

Timeline

The amendment will be effective from January 1, 2023. Certain changes will only stay in place until the end of June 2023, some until the end of December 2023, and others for an indefinite period.

The new rules

The VAT rate for ebooks and electronic non-periodical publications (e.g. textbooks and dictionaries) will change to 9% from the 21% standard rate.

The period to apply the reduced VAT rate of 9% for hospitality, accommodation and events was slated to end on December 31, 2022. According to the newly introduced changes:

  • Accommodation: The 9% reduced VAT rate will apply indefinitely for accommodation services and admission to art and cultural events and institutions when exemption does not apply to such services.
  • Catering & Takeaway: The VAT rate for catering and takeaway services, except for alcoholic beverages and related services, remains 9% until December 31, 2023.
  • Events: The reduced rate is also extended for admission to sports clubs, events, related services, and performance services; however, only until June 30, 2023.

Companies must be ready to update their systems to maintain compliance with the new rates.

How can Fonoa help?

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Mil√°n Z√°modics
Tax Researcher

Mil√°n is an indirect tax professional specialized in VAT and tax compliance. Before joining Fonoa, he worked at EY Hungary, providing indirect tax advisory and compliance services for a wide range of international and local clients from all industries. He also worked with digital tax products that automate tax processes.