The Lithuanian Parliament (Seimas) accepted for consideration Draft Bill No. XVP-90 which aims to introduce a reduced 9% VAT rate on essential food products on 30 December 2024.
The proposed bill also includes a measure to extend the lower VAT rate to catering and beverage services, excluding alcoholic beverages.
This initiative is designed to reduce the cost of essential items for consumers and provide relief to the food service sector. Under the bill, the government or an authorised institution will be responsible for establishing and updating a list of eligible food products. This will ensure that only the most essential food items are covered by the reduced VAT rate.
If the draft bill is approved, the changes shall take effect on 1 July 2025.
