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Lithuania cuts restaurant and hotel VAT to 9%

The Baltic state of Lithuania is to temporarily cut its Value Added Tax rate from 21% to 9% until 31 December 2022 on the following services:

  • Restaurants and cafes (excluding alcoholic drinks)
  • Catering services
  • Sports events and activities
  • Cultural attractions
  • accommodation

The tax cut will be in effect between 1 July 2021 and 31 December 2022. It is being provided to help tourism and hospitality sectors hit be the continuing COVID-19 pandemic and associated lockdowns. You can verify any global VAT and GST rates via our global rate pages.

In addition, there is a further four month delays on collecting VAT arrears until 31 August 2021.

Lithuania is also allowing carry forward of income tax losses for resident businesses.

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