Lithuania – Proposal to reinstate the reduced VAT Rate for Catering Services and Takeaway food

Lithuania – Proposal to reinstate the reduced VAT Rate for Catering Services and Takeaway food as of 1st July 2024

Members of the Lithuanian parliament proposed to reinstate the reduced VAT Rate of 9% for catering services offered in restaurants, cafes and similar establishments as well as for takeaway foods.
Such measure was in place in 2023 to help businesses affected by the Covid-19 pandemic, however it was abolished and as of 1st January 2024 the VAT Rate has been increased back to 21%. The rate hike resulted in declining turnovers and increased business closures.
As per the draft bill the reduced VAT rate of 9% would be applicable for a specified period from 1 July 2024 to 31 December 2027.