The Lithuanian parliament (Seimas) is considering a draft bill that would reinstate the reduced VAT rate of 9% for the supply of district heating and hot water. As previously reported, such supplies were excluded from the reduced rate as part of Lithuania's tax reforms for 2026, resulting in the application of the standard VAT rate of 21% with effect from 1 January 2026. As drafted, the reinstatement of the 9% rate would apply from 1 January 2027.