On June 20, 2025, the President of Lithuania signed into Law the legislation previously adopted by Parliament, which amends the VAT Act and Law no. No. XV-287, which introduced a new VAT reduced rate. This type of change is always essential, given the need for all suppliers and buyers in the supply chain to amend their billing and accounting procedures.
Starting January 1, 2026, a new reduced rate of 12% will replace the current 9% rate. This change will impact the imposable VAT rate for various supplies of goods and services.
The goods and services subject to the new 12% rate include:
- Accommodation services
- Passenger transport services
- Admission to different types of events
- Books on any medium(including e-books), as well as non-periodical publications
The 9% rate will apply to transactions processed(with accompanying payment) before 31 December 2025, even if the service is provided in 2026.