Regulatory updates - Lithuania

• *VAT Rate Changes**

The following changes are made to the application of VAT rates:

• *12% VAT is applied to:** Accommodation services for tourism activities, passenger transport services on regular routes established by the competent authorities, as well as passenger luggage transport services and for visiting all types of art and cultural institutions, art and cultural events, where the provisions of Article 23 of the VAT Law do not apply.
• *5% VAT is applied to:** Printed and electronic books and printed and electronic non-periodical information publications (including 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 9% rate will no longer apply.
• *9% VAT is abolished for:** Heat energy supplied for heating residential premises, hot water supplied to residential premises or cold water for preparing hot water and heat energy used to heat this water, firewood and wood products supplied to household energy consumers.
• *Timeline**

The changes will come into effect January 1, 2026.

• *Strengthening e-invoicing and digital VAT compliance**

This amendment under Law No. XV-155, adopted on April 10, 2025, and effective May 1, 2025, introduces a robust legal framework for electronic invoicing and digital VAT documentation.

• Mandatory e-invoicing standards: Articles 79 and 80 now require that electronic VAT invoices be issued, transmitted, and stored using systems that ensure:
• Authenticity of origin (verifying the sender);
• Integrity of content (ensuring the invoice is not altered);
• Legibility throughout the retention period.
• Structured formats and automation: The law promotes using standardized formats (e.g., XML) to support automation and integration with tax systems.
• Auditability and real-time access: Businesses must ensure that e-invoices are accessible for audits and can be submitted to the tax authority upon request or via integrated platforms.
• Credit and debit notes: Article 83 was updated to align correction documents with the same digital standards.
• *Expanding preferential VAT rates**

This amendment under Law No. XV-287, adopted June 17, 2025; effective January 1, 2026, revises the scope and structure of reduced VAT rates.

The 9% reduced VAT rate is increased to 12%, now limited to:

• Passenger transport services;
• Accommodation services;
• Admission to cultural events.

A new super-reduced 5% VAT rate is introduced for:

• Printed and electronic books;
• Non-periodical publications (excluding advertising-heavy or multimedia content).

The supply of district heating, hot water, and firewood is removed from the reduced rate and is now subject to the standard 21% VAT rate.

On 19 June 2024, the National Center for Common Functions (NBFC) announced that a two-month transition period for the migration to the SABIS platform from eSÄ…skaita was introduced. The main reasons for this altered approach were user requests and allowing better preparation for the businesses.

SABIS go-live phases

1 - 14 July 2024

• Week 1: Institutions connected to SABIS should review and manage their accounts and procurement contracts, and initiate/register contracts concluded outside of public procurement;
• Week 2: Suppliers and buyers should start issuing and receiving invoices, including those based on verbal contracts > EUR 1000,00 (excl. VAT) through SABIS.

15 July - 31 August 2024

• Suppliers are expected to submit invoices through SABIS but may submit them through eSÄ…skaita in case of difficulties. Buyers are expected to monitor their accounts on both platforms.

End of life of E.SÄ…skaita platform

As of 30 August 2024, E.SÄ…skaita will be disconnected, and SABIS will become fully operational from 1 September 2024.

The scope of e-invoicing obligation via SABIS

All invoices for public sector entities and procuring organizations should be submitted through SABIS. Furthermore, as outlined in the Governments resolution, the following invoices based on verbal contracts should be submitted through SABIS:

• 1 July 2024 - all invoices based on verbal agreements above EUR 1000,00 excluding VAT;
• 1 January 2025 - all invoices based on verbal contracts, regardless of their amount.

According to NBFC, the SABIS educational environment will be available to test new SABIS functionalities and roles. The organization invites all users to familiarize themselves with the video training.