FAQ

Frequently Asked Questions

Tourist tax will not be applicable to:

patients for whom medical rehabilitation services are paid from the budget of the National Health Insurance Fund;

persons under 18 or older students who can show a student ID;

disabled persons for whom a 0-40% working capacity has been set;

long-term lease (1 month or longer);

groups of persons leasing ten rooms or more.*

* This exemption will only by valid until 1 January 2019.

The tourist tax will be paid on a regular monthly basis by filling out the data declaration to the account specified by the Vilnius City Municipality Administration. The submission of the declaration and the tax transfer will only be performed online.

Starting 1 July 2018, Vilnius is introducing a tourist tax. The tax rate is €1 per person per night.

The tax applies to all guests using accommodation services, regardless of whether the service is provided by a legal or natural entity acting under a business certificate issued by the State Tax Inspectorate in accordance with the relevant code of classification of economic activities for leasing premises for the provision of accommodation services;

On 7 December 2017, the Council of Vilnius City approved Decision No 1-126 on “Regulations for local fees for use of the Vilnius municipal public tourism and recreation infrastructure”. The purpose of the decision, effective as of 1 July 2018, is to boost the competitiveness of Vilnius, to develop international marketing in tourism, attract larger flows of tourists to the city of Vilnius, and increase the volumes of export services. The objectives pursued are expected to contribute to the improvement of the quality of life in Vilnius. The tax will be charged on guests of the city who are provided accommodation services and who use the public tourism and recreation infrastructure of Vilnius.

Will the tax be payable by guests who stay/are accepted free of charge at a hotel?

If guests who do not belong to any category exempt of the tourist tax (disabled, schoolchildren, etc.) are staying at a hotel, this tax must be applied. Therefore, when guests are staying free of charge, this stay (for each overnight) has to be paid for by either by the guest themselves or the inviting party (agency, state authority or hotel that is providing the tourist with a free service).

Will the city tax be also charged on citizens of Lithuania?

Yes, the tax will be charged on all natural persons staying in accommodation operating in the territory of the City of Vilnius.

Is the tax valid year-round?

Yes, the tax is valid year-round.

Is the tax charged by hotels and other entities providing accommodation services?

The tax is charged by the City of Vilnius, rather than companies or persons providing accommodation services.

Will the tax be subject to VAT?

No, the tax is not subject to VAT.

Will the company/natural entity providing accommodation services be obligated to pay corporate income tax on the collected tax amount?

No, corporate income tax will not be charged. According to the provisions of Section III of the 10 Business Accounting Standard, income includes only increases in economic benefits of the entity. Amounts collected on behalf of third parties and value added tax are not recognised as income, since they are not attributed to economic benefits earned by the entity and do not result in increases in equity. The income of business intermediaries is commission fees only, rather not any amount collected on behalf of third parties.

How will this tax be collected?

Each accommodation service provider shall, within the framework of its corporate accounting system, introduce the tax as a new service, i.e., when issuing an invoice, the tax will be presented in a separate line, as well as in the cash register receipt; in case the payment is recorded by issuing a cash receipt, the tax shall be included in the gross amount, though the service will be singled out in a separate line.

Will a bank service fee be charged for receiving/paying the tourist tax?

The collection of the tourist tax is administered by UAB Lietuvos paštas. The postal service is paid €0.35 for each payment operation. The receipt of taxes by bank transfer is subject to standard fees for your bank's services and transactions.

Will penalties be imposed for non-payment of local taxes?

Unpaid local taxes will be recovered from the local tax payer in accordance with the procedure laid down by laws of the Republic of Lithuania.

Does the exemption from the tourist tax apply to groups of minimum ten persons or minimum ten rooms?

The exemption is applied to any group of persons who have rented ten rooms or more. This exemption shall no longer be in force on 1 January 2019.

When will the tourist tax come into effect?

The tax shall be effective for all guests who register as of 1 July at 12:00 (for those who have not been charged for overnight stay from 30 June to 1 July).

Will the tax be charged for guests who stay in the hotel before the tax comes into effect and plan to leave with the tax already in effect?

Guests who stay in the hotel before the entry into force of the tax and leave after the tax comes into affect (after 1 July at 12:00 am) are not charged.

Keeping in mind the new obligation (from 1 October 2020) to declare the number of Airbnb overnights, what to do if I have already made a declaration for September and I have not declared an Airbnb overnights?

If you have already submitted a declaration for September, you do not need to edit the declaration by entering the number of Airbnb nights. We kindly ask you to do this from next month (i.e. when declaring the nights for October 2020).

How to declare in October 2020?

Tourist tax declaration and payment system

Frequently Asked Questions