VAT rises to support defence spending
The Lithuanian Ministry of Finance has proposed a range of tax rises, including changes to the reduced VAT rates, to fund a rise in defence spending. This follows the Russian invasion of Ukraine.
The proposed changes in the VAT rates are:
- Existing 9% reduced rate would rise to 12%. This applies to some domestic passenger transport; domestic heating; tourist services; catering services; hotel accommodation.
- Books and other non-periodical publications would shift downs to the 5% rate
Aside from the reduced VAT rate rise, there will be a 1% rise in corporation tax rate to 17% and rises to income tax.
The proposals are now subject to a public consultation until 30th April 2025.
Read more in our Lithuanian VAT guide.
