If you browse the internet and see phrases like VAT Lithuania, VAT in Lithuania, or Lithuanian VAT, you are most likely looking for the applicable rates in Lithuania in 2025. The standard rate is 21%. This percentage covers most services and products, both in retail and B2B. Whether you ask “what is VAT in Lithuania” or “how much is VAT in Lithuania,” the answer is 21%. This is the basis of Lithuania’s VAT system.
Some Exceptions
Not every good or service is subject to this rate. Lithuania also applies reduced rates: 9% and 5%, and in specific cases, 0%.
9% (reduced VAT rate) applies to passenger transport, accommodation, hot water, heating, printed books and e-books, cultural access, and generally restaurant and catering services.
5% applies to medicines, medical equipment for disabled people, newspaper and magazine subscriptions, and sometimes specialized medicinal products.
0% applies to international and intra-EU transport, exports, and related services.
Track the Changes – They Are Coming
It’s important to stay updated because Lithuanian VAT will change slightly. From January 1, 2026, the 9% rate will increase to 12% for sectors like accommodation, public transport, and cultural events. Heating, hot water, and fuel will move to 21%, while books and non-periodical publications will remain at 5%.
VAT Registration – What You Need to Know
For businesses, “VAT in Lithuania” is not just a number—it’s a legal obligation. Residents must register if annual turnover exceeds €45,000. For non-resident businesses, the threshold is nil, meaning registration is always mandatory. Additionally, the EU e-commerce threshold of €10,000 applies; exceeding it requires registration through OSS.
In 2025, the Lithuanian parliament prepared measures to simplify compliance for small businesses from other EU countries that do not exceed these thresholds, allowing them to avoid local registration.
Other Key Points
The EU VAT in the Digital Age (ViDA) program, adopted in March 2025, introduces mandatory e-invoicing and better digital VAT reporting across the EU. Lithuania will have to implement these standards, which may affect your accounting processes if you operate cross-border.
Key ViDA implementation dates:
January 1, 2028 – first changes take effect.
January 1, 2035 – full e-invoicing implementation based on EN 16931.
July 1, 2030 – unified EU VAT registration and new B2B cross-border reporting obligations.
If you operate cross-border in Lithuania, these changes may impact your accounting processes. It’s worth following developments and preparing for upcoming VAT changes.
Quick Summary
Standard VAT: 21%
Reduced rates: 9% (transport, accommodation, heating, books), 5% (medicines, press), 0% (exports, transport)
2026 changes: 9% → 12% in selected sectors, heating → 21%, books → 5%
VAT registration: above €45,000 (residents), no threshold for non-residents, OSS applies at €10,000 EU sales
ViDA will introduce digital procedures in coming years
All key information you need to know about VAT in Lithuania at a glance.