What is VAT?
Value Added Tax (VAT) is a consumption tax applied to goods and services in Lithuania and across the European Union. VAT is paid by the end consumer, while businesses collect and remit it to the government.
Lithuanian VAT rates in 2026
Standard rate — 21%: applies to most goods and services.
Reduced rate — 12%: applies to heating, hotel services and certain other goods.
Super-reduced rate — 5%: applies to medicines, books and periodicals.
How to calculate VAT?
Adding VAT: Final amount = Amount × (1 + VAT rate / 100). For example, a product costs €100 without VAT: 100 × 1.21 = €121 with VAT.
Removing VAT: Amount without VAT = Final amount / (1 + VAT rate / 100). For example, a product costs €121 with VAT: 121 / 1.21 = €100 without VAT.
How much is the VAT amount from a price?
The VAT amount can be calculated by subtracting the price without VAT from the price with VAT. For example, if a product costs €121 with 21% VAT, the VAT amount = 121 – 100 = €21. You can also use the formula: VAT amount = Amount without VAT × (VAT rate / 100).
VAT calculation examples
Example 1: A computer costs €500 without VAT. With 21% VAT: 500 × 1.21 = €605. VAT amount: €105.
Example 2: A book costs €10.50 with 5% VAT. Without VAT: 10.50 / 1.05 = €10. VAT amount: €0.50.
Example 3: A hotel stay costs €89 with 12% VAT. Without VAT: 89 / 1.12 = €79.46. VAT amount: €9.54.
When does the reduced VAT rate apply?
The reduced 12% VAT rate in Lithuania applies to heating energy, hotel accommodation services, artwork sales and certain food products. The super-reduced 5% rate applies to reimbursable medicines, books, newspapers and magazines. These reduced rates help lower the cost burden on consumers in essential areas.
Who benefits from this VAT calculator?
This VAT calculator is useful for business owners, accountants, freelancers and anyone who needs to quickly calculate prices with or without VAT. You can use standard Lithuanian VAT rates or enter a custom rate for other EU countries.