Lithuania Tax Agency Updates Commentary on Preferential VAT Rate for Passenger, Luggage Transportation Services

The Lithuanian State Tax Inspectorate May 13 announced updated commentary for Article 19 of the VAT Law on the application of the preferential 9 percent VAT rate to passenger and luggage transportation services on regular transportation routes established by the Ministry of Transportation. The commentary was updated to: 1) clarify the treatment of transportation by charter flight, and on local streets long-distance routes, and streets that cross the country’s borders; 2) define “passenger ticket” and “cargo;" 3) amend examples; 4) delete obsolete provisions; and 5) make editorial changes. [Lithuania, State Tax Inspectorate, 05/13/24]

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