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Lithuanian Parliament Approves Law Extending 9% Reduced VAT Rate to Catering, Culture, and Sports Sectors — Orbitax Tax News & Alerts

Lithuania's parliament adopted Law XIV-429 on 22 June 2021, providing for a temporary extension of the scope of the 9% VAT rate to catering, culture, and sports sectors, which was recently approved by the government as part of a revised budget for 2021. Law XIV-429 provides that the following activities/supplies are subject to the 9% rate until 31 December 2022:

  • Catering services and take-away 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;
  • Attendance at all types of artistic and cultural institutions, artistic and cultural events, sports events, sports clubs, and other services similar to those provided by sports clubs; and
  • Performance services provided by performers, including actors, singers, musicians, conductors, dancers, or other persons who play, sing, read, recite, or otherwise perform literary, artistic, folklore, or circus numbers.

The law is in force from 1 July 2021.