Basic principle under Article 111(1) The VAT Act provides that taxable persons selling to non-business natural persons and flat-rate farmers are obliged to keep records of sales using register offices. We'll find an exception to that. Under Article 111(8) VAT Act. This provision entitles the Minister responsible for public finances to exempt certain groups of taxable persons and certain activities from the obligation to keep sales records by application.
The rules on exemptions are described in detail in the Regulation of the Minister of Finance from 28 December 2018 on exemptions from the obligation to keep records using register offices. That Regulation provides for two types of exemptions and details of when they can be used. As regards the exemptions concerned, they were exhaustively listed In the Annex to this regulation.
However, in this study we will focus on the principle of setting the exemption limit described Under section 3 Regulations.
According to section 3 section 1 point 1 Regulations shall be exempt from registration in a given tax year, but no longer than the date 31 December 2021 taxable persons whose turnover for non-business natural persons and flat-rate farmers did not exceed in the previous tax year the amount 20,000 PLN, and, in the case of taxable persons starting in the preceding tax year, the supply of goods or services to natural persons not engaged in economic activities and to flat-rate farmers, if the turnover for that purpose did not exceed, in proportion to the period during which those activities were carried out in the previous tax year, the amount 20,000 PLN
This provision is clear and leaves no doubt that taxpayers who did not exceed the limits in the previous year, In 2021 their limit of 20,000 PLN. Only after exceeding this amount will there be an obligation to record sales using the register office. It is worth remembering that the obligation to use a register office will arise after the expiry two months following the month in which the taxable person exceeded the turnover of non-economic natural persons and flat-rate farmers in the amount 20,000 PLN.
According to section 3 section 1 point 2 Regulations shall be exempt from registration in a given tax year, but no longer than the date 31 December 2021 taxable persons starting after the day 31 December 2018 the supply of goods or services to natural persons not engaged in economic activities and to flat-rate farmers, if the taxable person’s turnover does not exceed, in proportion to the period of performance of those activities in the tax year concerned, the amount 20,000 PLN.
It follows from that provision that taxable persons starting to supply goods or services to natural persons not engaged in economic activities and flat-rate farmers during the tax year shall calculate the limit according to the following formula:
20,000 PLN x number of days of sales per year / number of days per year
For example, if the taxpayer starts business on 1 October 2021, its limit will be 20,000 PLN x 92 / 365 = 5,041.09 PLN
As with the group of taxable persons concerned section 3 section 1 point 1 This exemption shall expire after the expiry of the regulations two the months following the month in which the taxable person has exceeded the turnover for the supply of goods or services to natural persons not engaged in business and flat-rate farmers in proportion to the period during which those activities were carried out, in the amount of 20,000 PLN.
When analysing the need to start recording sales using the register office, it is worth remembering about point 37 Appendix to the Regulation. The exemption from registration for the use of a register office shall not apply to the provision of services to natural persons not engaged in economic activities and to flat-rate farmers if the service provider receives a full payment for the operation carried out by mail, bank or cooperative savings and credit (for the bank account of the taxpayer or for the account of the taxpayer in the cooperative savings and credit account of which he is a member) and the records and evidence of the payment clearly show the specific activity involved.
Author: Mikołaj Stanisławski
From 2017 related to the firm Russell Bedford Poland. In 2007 graduated from the Faculty of Law and Administration of the University of Warsaw. In years 2008-2011 he made an attorney's application. From 2011 entered on the list of lawyers at the District Bar Council in Warsaw. In 2016 He graduated from the Postgraduate Tax Studies and Tax Law of the University of Warsaw. Specializes in tax and tax matters.