With effect from 1 January 2013, the following amendments to the VAT Law entered into force.

Reduced VAT rates

As previously reported, a reduced VAT rate of 9% is introduced for public passenger transportation services on regular routes, as set by the Ministry of Transportation and Communications or by councils of municipalities.

A reduced VAT rate of 5% is introduced in respect of technical equipment of disabled persons and repair thereof.

The application of the 9% reduced VAT rate on supplies of heating energy and hot and cold water intended for heating residential premises is extended to 31 December 2013.

The application of the 5% reduced VAT rate on fully or partially compensated pharmaceuticals and means of medical aid is extended to 31 December 2013.

Simplified invoices

An additional form of simplified invoices is introduced. Accordingly, simplified invoices may be issued if the value of supplied goods or services does not exceed LTL345 (approximately €100) and must contain only the following data:

• Date of issue
• Invoice number (no serial number needed)
• VAT number of supplier
• Name of supplier
• VAT number of recipient (if the recipient is a VAT payer)
• Description of supplied goods or services
• Taxable value of supplied goods or services subject to the same VAT rate
• Applicable VAT rate
• VAT amount in local currency

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