FAQ: The VAT rate change from 9% to 12% on January 1st 2026 In Lithuania

What is taking place? 

According to the Law amending Article 19 of the Lithuanian Value Added Tax Law (PVMĮ) No. XV-287, effective 1 January 2026, Lithuania will restructure its reduced VAT rates:

1. The preferential VAT rate is reduced from 9% to 5% for printed and electronic books and non-periodical information publications.

2. The preferential 9% VAT rate for heating, firewood, hot water is abolished.

3. The preferential 9% VAT rate is increased to 12%: for accommodation services, passenger transport, visiting art and cultural institutions and events.

4. 0% VAT rate applies to goods supplied as humanitarian aid and exported from the European Union (EU).
 

Will the 9% rate be removed after January 1st?  

No, the 9% rate will remain available. 

How will this be managed in Briox?

This will be managed automatically in Briox.
The invoice date will decide if the VAT rate is 9% or 12%.
Both rates will be posted to the same account and reported in the same boxes of the VAT report for customer invoices (sales).
For supplier invoices (purchases), the new rate of 12% will also be reported on the same accounts alongside the old VAT rate, and reported in  the same boxes of the VAT report.

 

What do I need to do?

The only thing you, as a user, will need to do after January 1st , is change the name of the account(s) you use if you do not want it to have 9% in its name any longer. 
Please note that the name of the account does not affect the VAT rate as both rates will be posted to the same account during the transition period.
Read how to change the name of your account here, in the section called Account settings.
After we have released the functionality for managing the VAT increase, all accounts created using any Briox standard Chart of Accounts will automatically have accounts with 12% in their account name.

What happens on January 1st 2026? 

When you create an invoice or post a journal with a date on or after January 1st, you will automatically get the new VAT rate of 12% when selecting the reduced VAT.

I am using both a posting date and an invoice date, how does this work?

It is always the invoice date that will be taken into account when the VAT rate is to be determined.

Read more about enabling an extra date field. 

SUPPLIER INVOICES 

I have set VAT rates on my suppliers in the registry. What happens to them?

As in the rest of the program, if you have set a VAT rate of 9% on your supplier in the registry, the VAT rate will be automatically updated to reflect the change taking place on January 1st.

How can I have an invoicing date in January and have a 9% VAT Rate on my supplier invoice?

How can I have an invoicing date in January and both 9% and 12% VAT on one invoice? 

In both cases you must select the option Multiple VAT rates in the VAT drop down menu in the invoice header.
This will allow you to freely code in the accounting grid.
Use a template to automatically calculate your VAT in the supplier invoice. These are easily created by copying existing ones.