Lithuanian VAT rises to support defence spending

1 May 2025

The Lithuanian Ministry of Finance is proposing to:

  • Increase the existing 9% reduced rate to 12% on supplies of some domestic passenger transport, domestic heating, tourist services, catering services and hotel accommodation.
  • Decrease the existing 9% reduced rate to 5% on books and other non-periodical publications.

These proposals aim to support increased defence spending following the Russian invasion of Ukraine. The proposals were subject to public consultation until 30 April 2025.

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