What VAT rate applies to accommodation in Lithuania in 2026?

From 1 January 2026, accommodation services provided under the legislation regulating tourism activity are subject to a reduced VAT rate of 12 % (it was 9 % until the end of 2025). Bookings registered on or before 31 December 2025 keep the 9 % rate, even if the stay takes place in 2026.

When does VAT registration become mandatory?

When the value of goods and services supplied in Lithuania during the previous or current calendar year exceeds €45,000. Below that threshold registration is not required, but it is possible voluntarily–invoices then show VAT, and VAT on purchases can be deducted.

Does a holiday home or apartment have to invoice every guest?

A VAT-registered provider always issues a VAT invoice to a company. A private guest gets one on request; otherwise the sale is documented another way, for example with a till receipt. Every sale has to be documented somehow, so it helps to have an invoice ready with every reservation.

Who issues the invoice when the booking came through Booking.com?

You do–the service provider–for the full amount of the stay. Booking.com, in turn, invoices you for its commission. Do not mix up these two documents: the commission does not appear on the guest's invoice.

Does the same VAT apply to a foreign guest?

Yes. Accommodation is taxed where the property is located, so a property in Lithuania is subject to the Lithuanian 12 % rate regardless of the guest's country. Accounting documents in Lithuania must be in Lithuanian, or in Lithuanian and a foreign language, so an English-only invoice does not qualify.

How does Ovilo handle invoices?

An invoice is issued from the reservation in a few clicks, in Lithuanian, with the VAT rate from your settings or without VAT if you are not registered. No retyping company details: enter the company code and the name and address are filled in from the Lithuanian register.

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

Which VAT rate applies to accommodation in Lithuania from 2026, when VAT registration becomes mandatory, who invoices a guest who booked through Booking.com, and how to do all of it straight from the reservation.

Updated October 11, 2026 · based on VMI (Lithuanian tax authority) information

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 in 2025.

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 %. Seeing the reservation's creation date makes this easy to check.

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.

Companies always get a VAT invoice, so it is worth having their details before departure. A foreign company may ask for an invoice in English, but an accounting document in Lithuania has to be in Lithuanian or bilingual (Lithuanian and a foreign language).

What an invoice must contain.

A VAT invoice must include the series and number, the issue date and the date of supply if it differs, the seller's and buyer's name, address, registration code and VAT number (if any), the description, quantity and unit price of the service–for example, ‘accommodation services, 3 nights’–the amount 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 is written in Lithuanian or in two languages; an English-only invoice does not qualify for accounting in Lithuania.

Series, number and dates.
Seller and buyer with addresses and codes.
Service, quantity and unit price: nights, room, extras.
Price excluding VAT, rate (12 %), VAT amount, total.
For non-VAT-registered businesses–an invoice without VAT lines.

A VAT invoice straight from the booking in a couple of clicks.

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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 check and send. The VAT rate follows your settings, and if you are not VAT-registered the invoice is generated without VAT lines. No retyping company details: enter the company code and the name and address are filled in from the Lithuanian register.

The reservation's creation date, stay dates, and amount sit together, so it is easy to check which rate applies, 9 % or 12 %. The report shows turnover by month, so the €45,000 threshold does not catch you by surprise.

An invoice from the reservation in a few clicks.
With or without VAT, according to your status.
Company details filled in from the company code.
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)

Short answers

Common questions

What VAT rate applies to accommodation in Lithuania in 2026?: From 1 January 2026, accommodation services provided under the legislation regulating tourism activity are subject to a reduced VAT rate of 12 % (it was 9 % until the end of 2025). Bookings registered on or before 31 December 2025 keep the 9 % rate, even if the stay takes place in 2026.
When does VAT registration become mandatory?: When the value of goods and services supplied in Lithuania during the previous or current calendar year exceeds €45,000. Below that threshold registration is not required, but it is possible voluntarily–invoices then show VAT, and VAT on purchases can be deducted.
Does a holiday home or apartment have to invoice every guest?: A VAT-registered provider always issues a VAT invoice to a company. A private guest gets one on request; otherwise the sale is documented another way, for example with a till receipt. Every sale has to be documented somehow, so it helps to have an invoice ready with every reservation.
Who issues the invoice when the booking came through Booking.com?: You do–the service provider–for the full amount of the stay. Booking.com, in turn, invoices you for its commission. Do not mix up these two documents: the commission does not appear on the guest's invoice.
Does the same VAT apply to a foreign guest?: Yes. Accommodation is taxed where the property is located, so a property in Lithuania is subject to the Lithuanian 12 % rate regardless of the guest's country. Accounting documents in Lithuania must be in Lithuanian, or in Lithuanian and a foreign language, so an English-only invoice does not qualify.
What must a VAT invoice contain?: Series and number, the issue date (and the date of supply if different), the seller's and buyer's name, address, registration code and VAT number (if any), the description, quantity and unit price of the service (for example, accommodation, 3 nights), the amount excluding VAT, the VAT rate and amount, and the total. Businesses that are not VAT-registered issue a plain invoice without VAT lines.
How does Ovilo handle invoices?: An invoice is issued from the reservation in a few clicks, in Lithuanian, with the VAT rate from your settings or without VAT if you are not registered. No retyping company details: enter the company code and the name and address are filled in from the Lithuanian register.