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Lithuania Considering Renewed VAT Rate Reduction for Catering Services

24 April 2024

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Proposed Changes

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Lithuania

The Lithuanian parliament (Seimas) is considering Draft Law No. XIVP-3658, which would amend the VAT Law to renew the reduced VAT rate of 9% for catering services and takeaway (takeout) food provided by restaurants, cafeterias, and similar catering establishments, with the exception of alcoholic beverages and services or parts of services related to alcoholic beverages. The application of the 9% VAT rate was first introduced in response to COVID but expired on 1 January 2024, with such supplies subject to the standard 21% VAT rate from that date. As proposed, the 9% VAT rate would apply from 1 July 2024...