Lithuania to Reduce Standard Rate of VAT
According to a recent report and subsequent announcements, financially astute members of Lithuania’s Parliament have put forward a proposal which would see the country’s standard value added tax rate be reduced from 21% to 18%.
Lithuania’s VAT scheme was last amended back in 2009 when the economic pressures of the European financial crisis led to a 2% rise in VAT in the country to stabilise the economy.
Now, however, a reduction of VAT is being considered to boost the economy once more and reduce the appeal of tax fraud which is a growing concern in the area. VAT is the largest tax revenue for the government, so any changes are expected to make a significant impact.
If approved by the whole Parliament, the proposed changes would come into effect from 1st January 2020.