Lithuania VAT Rate Changes 2026: Key Updates on Accomodation, Culture, Heat
Lithuania approved raising the VAT rates for accomodation, culture, heating and reduce VAT on books from 2026. Reduced VAT rate is raised to 12%, and other changes.
Lithuania is introducing major VAT rate changes affecting heating, books, insurance, accommodation, and cultural services starting January 1, 2026. These updates— passed by the Seimas as released on 17 June, 2025—mark a significant shift in Lithuania's VAT landscape.
The approved changes include increasing the 9% to a 12% VAT rate, a 21% VAT on heating and firewood, a reduced 5% VAT on books, and a new 10% tax on non-life insurance policies. As recently approved by the Lithuanian parliament (Seimas), these changes will impact businesses across hospitality, publishing, utilities, and insurance.
Updated Lithuania VAT Rates for 2026 by Sector
12% VAT for Accommodation, Transport & Cultural Events in Lithuania
The reduced VAT rate will increase from 9% to 12%. The new 12% VAT rate will impacts the following sectors:
- Hotel and accommodation services
- Certain public passenger transport services (e.g., buses, trains, etc.)
- Cultural events (concerts, exhibitions, theater, etc.)
What it means? These industries will face a higher tax burden, potentially leading to higher prices for end consumers.
21% VAT on Heating, Hot Water, and Firewood in Lithuania
A significant change is planned for the energy sector. The VAT rate will jump from 9% to the standard 21% for:
- District heating
- Hot water
- Firewood
What it means? Households and service providers will face a substantial increase in heating-related costs, especially during winter months.
Take a look at our overview of VAT rates in Lithuania.
5% Reduced VAT on Books and Non-Periodicals in Lithuania
Following the removal of 9% VAT rate and, in order to promote reading and education, the VAT rate will drop from 9% to 5% for:
- Printed and electronic books
- Non-periodical publications, printed and electronic (e.g., manuals, academic texts)
This includes the following printed materials: textbooks, exercise books, encyclopedias, dictionaries, reference books, information brochures, photo and reproduction albums, children's picture books, drawing and coloring books, printed or handwritten sheet music, maps, diagrams and drawings, but excluding calendars, notebooks and other similar printed matter.
The reduced rate shall not apply if advertising constitutes more than 4/5 of the entire publication or the entire or most part of which consists of musical or video content.
What it means? Publishers and readers benefit from lower costs, aligning with EU goals of promoting access to knowledge.
Take a look at the legislation already Gazetted modifying the VAT rates for certain goods and services in Lithuania.
Timeline for Implementation
The Parliament announced on 17 June that the legislation is passed, so the changes will take effect as of January 1, 2026. Businesses must prepare pricing systems, accounting software, and customer communications in advance. Take a look at the official announcement.
For a full overview of current VAT rates across the EU, visit our EU VAT rates summary.