VAT rises to support defence spending The Lithuanian Ministry of Finance has proposed a range of tax rises, including changes to the reduced VAT rates, to fund a rise in defence spending. This follows the Russian invasion of Ukraine. The proposed changes in the VAT
Baltic state debates phased threshold from €45,000 to €85,000 by 2028 Lithuania Parliament is debating a three-phased rise in the annual sales threshold for mandatory VAT registration threshold. It would rise eventually to €85,000, the highest permitted under the new, 2025 EU SME VAT registration. This
Zero-VAT measure until April 2025 Lithuania is progressing a Bill to reclassify the supply of residential fuel and hot water from the 9% reduced rate to zero. The measure, not in Parliament, would come into effect between 1 November 2024 and 30 April 2025. Economist
Government considering VAT and other tax rises to fund military spending Following the Russian invasion of Ukraine in 2022, Lithuania is looking at a 1% VAT increase to 22% to help meet additional military spend. Estonia VAT increased at the start of this year to
Shift from 21% standard rate to 9% reduced rate; other reduced rate changes The Baltic state of Lithuania is considering in parliament a fill to reduce the VAT rate on electronic books and publications to 9%. This follows most other EU states which have harmonised
