Taxation Changes in Lithuania since January 1st 2013

7 January 2013
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Starting from January 1st 2013 few tax changes came into force.


What concerns the Lithuanian VAT law, preferential VAT rates are applicable for few new categories of goods and services starting from 2013. Preferential rate 9 % rate shall be applicable for newspapers, magazines and other periodicals, except those of erotic or violent character and those where paid advertisement takes more than 80% of total area of publication. The same size preferential rate shall be also applicable for passengers transport tickets on regular routes as well as for carriage of luggage.  Since January 1st 2013 preferential 5% VAT rate shall apply to technical aid means of disabled people and to repair of such means.


Starting from January 1st, 2013 upper limit of the real estate tax rate in Lithuania is increased to 3% instead of 1% and tax rates shall be 0,3-3%. Municipality may set up several specific tax rates which are differentiated only on the basis of one or more of the following criteria: real estate purpose, use, legal status, its technical characteristics, maintenance status, taxpayer category (size or legal form, or social status) or location of the real estate in the municipality.


Furthermore, new edition of the Law on the Land Tax in Lithuania came into force on January 1st, 2013. The main idea of new amendments is to tax the land according to its market value, which shall be assessed for 5 years by the evaluation in a mass or individual way. The land tax rate limits shall be 0,01 – 4 % and the particular rate shall be assessed by municipalities. In comparison, before these changes the land tax rate used to be 1,5 % from the value of the land. Furthermore, the exemptions for the rural economy land shall be applied. Normally, for the rural economy big territories are necessary and the economic benefit received from it is limited. Therefore, the 0,35% value reduction coefficient shall be applied.

For questions, please, contact Valters Gencs, attorney at law at

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The material contained here is not to be construed as legal advice or opinion.

© Gencs Valters Law Firm, 2015