When income is deemed as sourced from self-employment in agricultural activities

Income is deemed as sourced from self-employment in agricultural activities when cash is received (i.e. on a cash accounting principle). However, if persons are registered as taxpayers for value added tax (VAT) purposes, or have declared to the State Tax Inspectorate their use of non-current assets (have submitted Form FR0457), then such persons are deemed to have received income when they have rendered services and/or sold goods (i.e. on an accrual accounting principle).

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).