Lithuania, Markets and Companies, Taxation

As of 1 January 2009, the value added tax (VAT) was increased in Lithuania from 18% to 19%, but the companies themselves intended to cover the difference of 1%, reports ELTA.

"We made the decision not to change the prices for goods offered in our stores in the light of the increasing VAT because of our customers. We do not intend to burden them by increased VAT neither immediately after the New Year nor later," stated Marc Andreas Carls, chairman of the board of directors of Douglas Baltic and head of Douglas LT.

Douglas, the largest fragrance and cosmetic retailer in Europe, entered the Lithuanian market in 2007, by purchasing a 51-% holding of the company Baltic Cosmetic Holding. In Lithuania, the company owns the stores of Douglas and Sarma, in Latvia – Kolonna and in Estonia – Esthetique.