How VAT (PVM) Works in Lithuania (2026): 21% Standard, 12% and 5%
Lithuania applies value added tax (pridetines vertes mokestis, PVM) at a standard rate of 21%, a reduced rate of 12% (raised from 9% in 2026, covering accommodation, books, passenger transport and heating) and a 5% rate (medicines and certain goods). Businesses register once turnover passes the threshold. Verify with VMI (vmi.lt).
The three PVM rates
Standard rate 21% applies to most goods and services. The reduced rate rose from 9% to 12% for 2026 and covers tourist accommodation, books and periodicals, passenger transport and residential heating. The 5% rate applies to medicines, medical aids and certain other goods. Exports and intra-EU supplies are zero-rated; financial, health and education services are generally exempt. Confirm the correct rate for a specific supply with VMI, as the 2026 change moved several categories from 9% to 12%.
Registration and returns
A business must register for PVM once its taxable turnover exceeds the registration threshold over 12 months, or immediately on certain intra-EU acquisitions; voluntary registration is possible below the threshold. Registered businesses charge PVM on sales, deduct input PVM on purchases and file periodic returns. Confirm the current threshold and filing frequency with VMI.
FAQ
What are Lithuania's VAT rates in 2026?
Standard 21%, reduced 12% (raised from 9% in 2026: accommodation, books, transport, heating) and 5% (medicines and certain goods). Exports are zero-rated. Because the 2026 change reclassified several items, verify the rate for your goods with VMI.
What changed for Lithuanian VAT in 2026?
The reduced rate increased from 9% to 12%. Categories that were at 9% -- such as accommodation, books, passenger transport and heating -- moved to 12% from 2026. Confirm the current classification with VMI.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.