The Lithuanian parliament (Seimas) has approved a series of significant changes to the country’s VAT system, set to take effect from January 1, 2026. The reform introduces higher VAT rates for several sectors, including accommodation, culture, and heating, while also lowering the tax on books.
Key updates
The following changes will take place:
- The reduced VAT rate of 9% will increase to 12%, affecting accommodation, certain transport services, and cultural events. This may result in higher prices that will affect end customers
- The VAT on heating, hot water, and firewood will rise to the standard rate of 21%. Households and service providers will face additional costs, particularly during colder periods.
- A reduced VAT rate from 9% to 5% will apply to books and printed or electronic publications, as well as non-periodical publications, both printed and electronic (e.g. manuals, academic texts), as a means of promoting reading and learning.
This excludes:
- calendars,
- notebooks,
- publications in which advertising constitutes more than 4/5 of content,
- other similar printed matter.
These measures are expected to have wide-reaching effects across the hospitality, publishing and utilities.
Source:
–XV-287 Lietuvos Respublikos pridėtinės vertės mokesčio įstatymo Nr. IX-751 19 straipsnio pakeitimo …
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