Lithuania: VAT rate reduction for catering services, cultural and sports events (COVID-19)

A reduced rate of VAT is intended to provide relief for businesses due to coronavirus

A reduced rate of VAT is intended to provide relief for businesses due to coronavirus

A temporary reduction to the rate of value added tax (VAT)—effective 1 July 2021 through 31 December 2022—applies with regard to catering, cultural events, performance acts, and sports-related services.

The reduced rate of VAT is intended to provide relief for businesses in these sectors as they recover from the economic effects of the coronavirus (COVID-19) pandemic. The reduced VAT rate is available with regard to:

  • Services of restaurants, cafes, and similar establishments providing catering and takeout (but not available with regard to sales of alcoholic beverages)
  • Attendance at art and cultural institutions, cultural events, sports events, sports clubs
  • Admission to performances provided by singers, musicians, actors, etc.

Read a July 2021 report [PDF 1.2 MB] prepared by the KPMG member firm in Lithuania

 

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