Lithuanian small entrepreneurs will no longer need double bookkeeping, only black bookkeeping will be enough, because white bookkeeping will soon be conducted by the State Tax Inspectorate itself: it will keep the account of small entrepreneurs from 2024. will be implemented in stages

  "In 2024 the small entrepreneur account, which will be launched, will be implemented in stages, without initially automating the calculation of all fees. It is planned that 85,000 self-employed persons could use the account.

 

     Starting in early 2024, there is a pilot phase for the small business account where customers can test the account, with more features coming later based on feedback.

 

     How a small business account will work

 

     According to the Ministry of Economy and Innovation, a person will open a small entrepreneur account in a financial institution that will provide such a service, and the State Tax Inspectorate (VMI) will automatically register the individual activity, so it can be started immediately.

 

     All receipts to this account, including cash deposits, will be classified as operating income and the data will automatically be transferred to the Personal Income Tax (PIT) declaration. 

 

     It is noted that the tax calculation is expected to be automated only partially in the pilot phase.

 

     "After receiving positive feedback and results, self-employed persons will be offered a complete package - fully automated real-time accounting and tax calculation once a month." State social insurance (VSD) and mandatory health insurance (PSD) taxes will be automatically calculated," the report states.

 

      Information from the Ministry of Economy and Innovation.

 

     VŽ reminds that the account of a small entrepreneur is one of the tax reform proposals. The Ministry of Economy and Innovation, which initiated the measure together with the Ministry of Finance, indicates that it aims to reduce the administrative burden on small and medium-sized businesses, as well as facilitate financial and accounting management for the self-employed.

 

     "This is an advanced, modern approach to financial management and accounting - all processes are automated. Self-employed persons will be able to devote all their strength and attention to the ongoing activities, instead of time-consuming tax calculations and filling out declarations. By reducing the administrative burden, we encourage the entrepreneurship of the population and create more opportunities for small entrepreneurs", Aušrinė Armonaitė, Minister of Economy and Innovation, is quoted in the report.

 

     According to survey data, one self-employed resident devotes about 18 hours to accounting per year. Also, more than half of the respondents rate their ability to manage accounting as average or below average. The most common difficulties are: a complicated process of submitting declarations, difficult to calculate the taxes to be paid, lack of accounting knowledge.

 

      "We believe that the instrument prepared by the Ministry of Finance will become a daily routine for the self-employed - just like connecting to electronic banking. Easy, comprehensible and transparent are the most important priorities of a small entrepreneur's account," Gintarė Skaistė, Minister of Finance, points out."