close

Lithuania, new VAT rate from 1st of September 2009
01-08-2009

With effect from 1st September 2009 the standard VAT rate in Lithuania will increase from 19% to 21%.

With effect from 1st of September 2009 the standard VAT rate in Lithuania will increase from 19% to 21%. The raise in the VAT rate does not apply to cigarettes and manufactured tobacco, provided that these products are marked with excise duty stickers, which were ordered until 1st of September 2009. If this condition is not met, tobacco products should be subject to the new 21% VAT rate.

Additionally, according to the latest changes in the Lithuanian VAT Law, the reduced VAT rate of 9% will apply to the supply of heat and hot water. The application of the reduced VAT rate is a temporary measure and will be in force from 1st of September 2009 to 31st of August 2010. It remains to be seen what will happen to this rate after this expiry date.