Compensation and one-time allowances for providers of classified accommodation

Applications can be submitted until May 16, 2022, inclusive.
Multiple applications may be submitted, but compensation is granted only once for one facility.

What are the benefits?

The measure aims to ensure the solvency and business continuity of classified accommodation providers due to the decrease in the number of users of classified accommodation services due to the COVID-19 pandemic and the increase in costs due to rising prices for natural gas, electricity, and heat supply (utilities).

Who can apply?

The following may apply to the measure:

  • Legal entities applying for compensation of up to 50 percent of the costs incurred for the utilities provided by the classified accommodation services – hotel, motel, guest house, camping service facility located in the building specified in the application, during the period from November 1, 2021, to March 31, 2022. Value-added tax and interest on overdue utilities are not compensated by the measure.
  • Legal entities and individuals, when a one-time allowance of up to EUR 100 is requested for each room in the facility specified in the application.

Applications for compensation or one-time allowance for providers of classified accommodation services may be submitted to INVEGA at https://islaidukompensavimas.invega.lt

In the case of an application from a legal entity wishing to compensate up to 50% of the costs incurred for utilities:

Documents and information provided Legal entities
SME's Large companies

Application
(to be filled in and submitted online by logging in to the application system)
Instructions for filling in the application

The SME status declaration signed by the manager
Declaration of one company

Data from the financial statements for 2019 and 2021 to estimate the decline in revenue of a classified accommodation service provider (decreased by at least 40 percent in 2021 compared to 2019).

Invoices for utilities indicating the number of services provided issued between November 1, 2021, and March 31, 2022, sent to the address of the classified accommodation service provider and (or) the building where the facility is located.
Group of companies, if the provider of classified accommodation services belongs to a group of companies, and a set of financial statements of the provider of accommodation services for 2019, which must disclose in detail the composition of equity, except when the provider of accommodation services is established from January 1, 2020.

If on December 31, 2019, the provider of classified accommodation services or the group of companies, to which the accommodation provider belongs, were considered to be in difficulty within the meaning of Article 2 (18) of Regulation (EU) No 651/2014 but are not considered so at the time of application, documents substantiating the inexperience of the difficulties must be provided.

Information on the ownership and control structure of the provider of classified accommodation services under clause 13 of article 9 of the Law on prevention of money laundering and terrorist financing indicating the identities of the beneficiaries and an extract from the Legal entity participant information system or equivalent system.



When applying for a one-time allowance of up to EUR 100 for each room (number) in the facility specified in the application, a legal entity or individual shall apply:

Documents and information provided Legal entities Individuals
SME's Large companies
Application
(to be filled in and submitted online by logging in to the application system)
Instructions for filling in the application
The SME status declaration signed by the manager
Declaration of one company
The provider of classified accommodation services incurred a loss of at least EUR 1 in 2021 based on the income statement data.
Group of companies, if the provider of classified accommodation services belongs to a group of companies, and a set of financial statements of the provider of accommodation services for 2019, which must disclose in detail the composition of equity, except when the provider of accommodation services is established from January 1, 2020.
If on December 31, 2019, the provider of classified accommodation services or the group of companies, to which the accommodation provider belongs, were considered to be in difficulty within the meaning of Article 2 (18) of Regulation (EU) No 651/2014 but are not considered so at the time of application, documents substantiating the inexperience of the difficulties must be provided.
Information on the ownership and control structure of the provider of classified accommodation services under clause 13 of article 9 of the Law on prevention of money laundering and terrorist financing indicating the identities of the beneficiaries and an extract from the Legal entity participant information system or equivalent system.

Requirements for applicants

When applying for compensation of up to 50% of the cost of utilities

Only legal entities can apply.

The provider of classified accommodation services (legal entity) must meet the following special requirements:

  • There is a legal entity – registered in the Register of legal entities no later than October 31, 2019.
  • At the time of application and in the period until December 31, 2019, it had a certificate of classification of accommodation services issued granting the right to provide classified accommodation services in the facility specified in the application.
  • The classified accommodation service provider's revenue decreased by at least 40% in 2021 compared to 2019. If the provider of classified accommodation services is registered in the Register of legal entities later than January 1, 2019, the average monthly income for the period of operation in 2019 shall be compared with the average monthly income for 2021. Compliance with the requirement shall be assessed under the data of the classified accommodation service provider's financial statements for 2019 and 2021.
When applying for a one-time allowance of up to 100 Eur for rooms

When applying, a legal entity that is a provider of classified accommodation services must meet the following special requirements:

  • It shall be registered in the Register of legal entities no later than December 31, 2021.
  • In 2021, it incurred a loss of at least EUR 1 based on the data of the profit (loss) statement of the classified accommodation service provider.
  • At the time of applying, it has a valid accommodation service classification certificate issued under the procedure established by the Law on tourism granting the right to provide classified accommodation services in the facility specified in the application for the first time in the period from November 1, 2019, to December 31, 2021.

When applying, an individual that is a provider of classified accommodation services must meet the following special requirements:

  • Individual activity according to the certificate for group 55.1 “Activities of hotels and similar temporary accommodation” was registered no later than December 31, 2021.
  • At the time of application, it had a valid certificate for the classification of accommodation services issued under the procedure established by the Law on tourism granting the right to provide classified accommodation services in the facility specified in the application issued no later than December 31, 2021.

All classified accommodation providers must meet the following general requirements:

  • If the application is submitted by a legal entity, the main activity code specified in the statistical register of economic entities of statistics of Lithuania must be assigned to group 55.1 of the Classification of economic activities (CEA, rev. 2) “Activities of hotels and similar temporary accommodation”.
  • At the time of application, no insolvency proceedings have been initiated against it, and (or) it is not being restructured when the application is submitted by a legal person, or it is not the subject of bankruptcy proceedings against an individual where the application is made by the individual.
  • The classified accommodation service provider in the Republic of Lithuania has not received illegal aid, which was declared illegal and incompatible with the internal market by the decision of the European Commission, or has compensated the full amount thereof, including interest, under the procedure established by law.
  • The classified accommodation service provider or the group of companies, to which the accommodation provider belongs, were not considered to be in difficulty on December 31, 2019, or were in difficulty on December 31, 2019, but are not considered to be in difficulty at the time of application.
  • At the time of application, it meets the minimum criteria for reliable taxpayers set out in article 401 of the Law on tax administration of the Republic of Lithuania.
  • It provides classified accommodation services at the facility specified in the application at the time of application.
  • Before the decision on granting compensation to the provider of classified accommodation services, as defined in the Law on the prevention of money laundering and terrorist financing of the Republic of Lithuania, no international sanctions have been applied under article 9 of the Law on the implementation of economic and other international sanctions of the Republic of Lithuania, and they are not included in the published lists of sanctions specified on the website of the Ministry of foreign affairs of the Republic of Lithuania www.urm.lt and (or) in the public list of foreigners who are prohibited from entering the Republic of Lithuania published on the website of the Migration Department under the Ministry of the interior of the Republic of Lithuania www.migracija.lt

How much?

The maximum possible amount of compensation for one facility is EUR 50,000. Compensation is given only once for one facility.

The total amount of state aid granted to one provider of classified accommodation services and persons related to it may not exceed EUR 2.3 million.

INVEGA, after evaluating the submitted application, shall determine the amount of compensation by summing up the possible amounts of compensation for all business entities, for which a decision to grant compensation may be made. If the result obtained exceeds the amount granted for compensation (i.e., EUR 3,400,000), the amount of compensation granted shall be reduced by an equal percentage so that the total amount of compensation granted for compensation does not exceed the amount allocated for compensation. The amount of compensation awarded shall be rounded to the nearest 1 Eur (one euro) according to mathematical rounding rules. INVEGA, having conducted the established calculation, shall prepare a recommendation to the Ministry of economics and innovation regarding the granting or non-granting of compensation to the relevant provider of classified accommodation services.

INVEGA will randomly inspect at least ten percent of the classified accommodation providers, for which a positive decision has been made. The inspections will be conducted under the procedure approved by the General Director of INVEGA.

Terms

Applications can be submitted until May 16, 2022, inclusive.

Multiple applications may be submitted, but compensation is granted only once for one facility.