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The Lithuanian Parliament (Seimas) has initiated a review of Bill No. 25-6750, which proposes changes to the country’s VAT Law. The bill aims to adjust preferential VAT rates affecting key sectors, including tourism, transportation, cultural services, and publishing.
Key Measures in the Bill:
1. Preferential VAT Rate Increase: Under the proposed amendments, the preferential VAT rate will rise from 9% to 12%, effective January 1, 2026. This increase will apply to the following categories:
- Accommodation Services: Including certain types of lodging specified in the legislation.
- Passenger Transport Services: Specifically those operating on regular routes, including the transport of luggage.
- Admission to Art and Cultural Institutions and Events: Subject to certain defined conditions.
2. Clarification of the 5% VAT Rate: The bill clarifies that the current 5% reduced VAT rate is applicable to:
- Printed Books
- Electronic Books
- Electronic Non-Periodic Informational Publications
Certain exceptions are also outlined in the proposed amendments, offering more transparency on how the reduced rates apply.
Read More: Lithuanian Small Businesses Can Now Apply for a VAT Exemption
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