When income is deemed as sourced from self-employment under an individual activity certificate

Income sourced from self-employment is determined on a cash accounting principle, and refers to cash received by self-employed persons. However, if self-employed persons are  registered as taxpayers for value added tax (VAT) purposes, or have declared the use of fixed assets to the State Tax Inspectorate (have submitted Form FR0457), then income sourced from self-employment is determined on an accrual accounting principle, and refers to income received for providing services and/or selling goods.

From 2023-01-01, if you are not obliged to apply the accrual accounting principle (i.e. you are not registered as a VAT payer or you have not assigned a fixed asset to your individual activity), you can choose which (cash or accrual) accounting principle to apply.

For more detailed information, please see here (only in Lithuanian).