Energy, Financial Services, Legislation, Lithuania, Taxation, Tourism
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Thursday, 25.04.2024, 21:49
Lithuanian PM: VAT discount on heating, hotels will remain
Up until this June, the VAT tariff for heating was 9 %, a tariff also
applies on accommodation services. The government has earlier considered
discarding the privileges and start applying the usual 21-% size.
The VAT discount for heating was agreed between the prime minister and the
opposition conservatives on the reform of the forestry sector, while the
decision to leave the lower tax for hotels was made in light of regional
competition and projects that are being developed.
The government is discussing a new 15-% tariff for hotels, however, the
information is yet to be confirmed by the prime minister.
"The exact figures will be announced next week. We have signed an
agreement with the conservatives on introduction of a new lower tariff on
heating – this will be done," Skvernelis told BNS.
"This will also be good news for hotels. We assessed the risks of how
Lithuania would look among other European Union countries, if we had a 21-%
tariff and the impact it would have on business. This is part of our exports.
We have at least 20 hotel developers, business plans in advance and the drastic
raise would have an effect," said the prime minister.
Currently, the lower 9-% tariff will also be applied on books and transport
services, while a 5-% tariff is applied on medication. Under one of the
scenarios discussed at the government, all of the goods and services should be
subject to a 5-% tariff starting 2018.