Is accommodation in Lithuania taxed at 21 %, 12 % or 9 % VAT?
Accommodation services are taxed at the reduced 12 % rate from 2026, and 9 % remains only for bookings registered by the end of 2025. The standard 21 % rate applies to anything that is not an accommodation service under the tourism legislation.
The confusion comes from two changes in a few years: the reduced rate went up from 9 % to 12 %, and some hosts picked up new VAT obligations because of platform commissions. So all three numbers appear online, and each is right for someone.
The reduced rate applies to accommodation services provided under the tourism legislation. A hotel, guesthouse, homestead or short-term rental registered as an accommodation service falls here. A long-term let under a lease does not.
If you sell other services alongside the stay, assess each one separately and discuss packages with your accountant. Also remember that VAT on Booking.com or Airbnb commission is a separate question from the VAT on your guest's invoice.
| Rate | When it applies |
|---|---|
| 12 % | Accommodation services from 2026-01-01 |
| 9 % | Accommodation where the booking was registered by 2025-12-31 |
| 21 % | Standard rate: anything outside the reduced rate |
| No VAT | When you are not a VAT payer |
Sources: VMI: reduced 12 % VAT rate (in Lithuanian) , VMI: VAT payers (in Lithuanian)
How Ovilo handles it
In Ovilo invoices you set the VAT rate to match your status and services: one rate for nights, another for other services, or no VAT at all if you are not a VAT payer.
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