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