Tax news that touches foreign owned companies

Short summaries, links to sources, no commentary padding. Updated when something matters, not on a schedule. Last update: 14 July 2026.

1 JANUARY 2026 · LITHUANIA

VAT reduced rates rebuilt. The standard rate stays 21%.

The 9% reduced rate is gone. From 2026 there are two reduced rates: 12% for accommodation, scheduled passenger transport and culture and sport events, and 5% for books and non periodical publications. District heating, firewood and hot water moved to the standard 21%. If you trade goods, nothing changes for you: goods stay at 21%. If you invoice into the affected sectors, the coding on your invoices changed at new year.

VMI on the 12% rate · Finance Ministry VAT page

1 JANUARY 2026 · LITHUANIA

The 2026 tax reform: defence money, progressive income tax, new property tax

A package rebuilt personal income tax into progressive bands, raised the standard corporate profit tax rate, rebuilt the real estate tax with a 0.2% defence component on commercial property, and added new taxes including an excise on sweetened drinks and a security contribution on non life insurance premiums. For a foreign trader with only a VAT registration the direct effect is small. The indirect one is real: your Lithuanian landlord's property costs went up, and that tends to appear in the next warehouse rent negotiation.

Motieka overview of the 2026 reform

ADOPTED 11 MARCH 2025 · EU · ROLLING OUT TO 2035

ViDA: the EU is building what Lithuania already runs

The VAT in the Digital Age package brings mandatory e invoicing and near real time digital reporting for cross border B2B sales from 1 July 2030, replacing EC sales lists. From 1 July 2028 the Single VAT Registration reforms arrive, movements of own goods across EU borders can go through the One Stop Shop, and no new call off stock arrangements may be created. If you hold stock in several EU countries, the 2028 changes are the ones to plan around. Lithuania's i.SAF has required itemised digital invoice reporting since 2016, so companies filing here are already living in the world the rest of the EU is heading into.

European Commission ViDA page · Running timeline, vatcalc.com

Sources we watch: vmi.lt · lrmuitine.lt · finmin.lrv.lt · taxation-customs.ec.europa.eu. If something changes that affects you, it appears in your monthly one pager before it appears here.