Lithuania Raises Reduced VAT Rate to 12% and Introduces Other Changes Effective 1 January 2026

Published: January 1, 2026

Lithuania's reduced VAT rates will undergo several significant changes starting 1 January 2026, as approved by the Seimas in the 2026 state budget.

The main reduced rate increases from 9% to 12%, while district heating moves to the standard rate. At the same time, books and medicines benefit from a new lower 5% rate.

Affected Goods and Services (Now at 12%)

• ✓ Accommodation services (hotels, holiday rentals, camping)
• ✓ Passenger transport on regular routes
• ✓ Admission to cultural events and institutions (theatres, cinemas, museums, concerts)
• ✓ Admission to sporting events and facilities
• ✓ Performing artists' services (when VAT-liable)

Significant Increases to Standard Rate (21%)

• ✓ District heating, hot water supply, and firewood (previously 9%)

New Lower Rate (5%)

• ✓ Medicines and pharmaceuticals
• ✓ Books (physical and electronic) and non-periodical publications (excludes mainly advertising, music, or video content)

Unchanged Rate

• ✓ Standard VAT rate: remains 21%

Transition Rules

The new rates apply based on when VAT liability arises:

• ✓ For goods: date of delivery or handover to the buyer
• ✓ For services: date of completion
• ✓ Advance payments/reservations: the old 9% rate may apply if payment was received before 31 December 2025 (specific to affected sectors)

Businesses should update pricing, invoicing systems, and point-of-sale configurations in advance to ensure compliance from 1 January 2026.

Rates have been updated in our database for customers using both Version 1 & 2 of the API.