The Lithuanian Parliament considered Bill No. XIVP-2148(2) which is set to the application of a 5% reduced VAT rate to specific services.
The 5% reduced VAT rate applies to the following:
- Accommodation for tourists offered in line with the law governing tourism-related activities (not part of the temporarily reduced rate of 9%)
- Services of restaurants, catering services, and takeaway food (not applicable to alcoholic beverages)
- Visits to cultural institutions, athletic events, and other related events and
- Entertainment services provided by singers, actors, musicians, conductors, and dancers
The reduced VAT rate aims to help enterprises recover from the economic effects of the pandemic. The new VAT rate would enter into force on 1 January 2023.
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