VAT invoices for accommodation in Lithuania: who, when, and at what rate.

From 2026–12 %.

From 1 January 2026, accommodation services provided under the legislation regulating tourism activity in Lithuania are subject to a reduced VAT rate of 12 %. From 2015 until the end of 2025 the rate was 9 %. The standard rate in Lithuania remains 21 %, so accommodation is still taxed at a reduced rate–but three percentage points higher than last year.

The transitional rule matters for seasonal properties: if a booking was registered on or before 31 December 2025, it keeps the 9 % rate even if the stay takes place in 2026. Bookings from 1 January 2026 onward–12 %. A system that shows you the reservation's creation date settles this question for you.

Sources: VMI: reduced 12 % VAT rate (VAT Act, Article 19) (Lithuanian)

When you become a VAT payer.

You must register for VAT when the value of goods and services supplied within Lithuania during the previous or current calendar year exceeds €45,000. A homestead with several cottages or an owner with a few apartments may reach that threshold sooner than expected, especially when counting the full amount received through Booking.com or Airbnb rather than the amount left after commission.

Below the threshold, registration is optional. Voluntary registration makes sense if you buy a lot with VAT (construction, equipment, furniture) and want to deduct it, or if your guests are mostly companies that need VAT invoices. Make the decision with your accountant–but tracking turnover is your job, and a system that shows it in one place helps a great deal.

Sources: VMI: when the obligation to register for VAT arises (Lithuanian) , VMI: how the €45,000 threshold is calculated (Lithuanian)

Who invoices a guest who booked on Booking.com.

A common question: ‘the guest came through Booking.com–who issues their invoice?’ The answer: you. You provide the accommodation service, so the service provider invoices the guest for the full amount of the stay. Booking.com separately invoices you–for its commission. Those are two different documents, and the commission does not appear on the guest's invoice.

Business guests will ask for an invoice almost every time, and foreign companies will want it in English. So the easiest approach is to ask for company details in advance, in the registration form, and have the invoice ready before arrival.

What an invoice must contain.

A VAT invoice must include the date and number, the seller's and buyer's name, registration code, and VAT number (if any), the description and scope of the service–for example, ‘accommodation services, 3 nights’–the price excluding VAT, the applicable rate, the VAT amount, and the total. Businesses that are not VAT-registered issue a plain invoice without VAT lines.

A foreign guest is subject to the same Lithuanian rate, because accommodation is taxed where the property is located. The invoice can be in English–what matters is that the details are complete and the numbering is consecutive.

• Date, number, seller and buyer with their codes.
• Service and scope: nights, room, extras.
• Price excluding VAT, rate (12 %), VAT amount, total.
• For non-VAT-registered businesses–an invoice without VAT lines.

An invoice from the reservation–in a minute.

Ovilo issues the invoice straight from the reservation: the services, nights, extra charges, and payments are already there, so all that is left is to choose the language–Lithuanian or English–and send. The VAT rate follows your settings, and if you are not VAT-registered the invoice is generated without VAT lines. The guest can enter company details during online check-in, so the invoice is prepared before arrival.

The reservation's creation date, stay dates, and amount are visible in one place, so transitional questions–9 % or 12 %–are settled without guesswork. The report shows turnover by month, so the €45,000 threshold does not catch you by surprise.

• Invoice in LT or EN in a few clicks.
• With or without VAT, according to your status.
• Company details from the guest's registration form.
• A turnover report for tracking the VAT threshold.

A note on tax.

This guide summarises publicly available VMI information for accommodation businesses and is not tax advice. Check specific cases–especially VAT registration, deduction, and transitional periods–with your accountant or VMI. If you notice that something has changed, write to us and we will update it.

Sources: VMI: VAT payers (Lithuanian)