Lithuania Tax Agency Seeks Comments on Application of VAT Reduction for Specific Medicines, Food Products

The Lithuanian State Tax Inspectorate March 20 opened a consultation on the application of the reduced 5 percent rate for qualifying medicines and food products. The draft explanation includes: 1) the application of the reduced 5 percent VAT rate to medicines, medical aids, and food products for special medical purposes; 2) the qualifications for applying the reduced VAT rate, including when the costs of purchasing these goods are either fully or partially compensated by the compulsory health insurance fund; and 3) that sold medicines are subject to the 21 percent standard VAT rate if outer packaging value stays below 300 ...