A temporary zero percent VAT rate on district heating was proposed by Lithuanian Finance Minister Gintare Skaiste to mitigate the country’s rising inflation, citing the record-breaking increases in household heating expenditures during this winter season. The state budget will fund the existing reduced VAT rate of 9% and households will not be required to pay VAT.
The move will incur a cost of around 23 million EUR for the government. The VAT exemption would be applicable for the period from January until late April.
Source: delfi.lt