photo Oliver Menyhart, Pixabay Food purchases related to the activities carried out, documented by a fiscal receipt, may be included in the costs provided that the amount does not exceed 450 PLN.
This information is based on the latest interpretation requested by the bar operator.
The applicant described the following facts: 1 June 2020 it shall bear expenditure on the acquisition of food products in unit amounts not higher than 450 PLN, the expenditure is documented by sellers - active VAT taxable persons - fiscal receipts on which the applicant's NIP is entered.
Food products are used to prepare meals sold at the applicant's bar.
This in the records kept for the purposes of the tax on goods and services records the tax charged from the abovementioned fiscal receipts and listed in the abovementioned receipts the tax charged is deducted from the tax due for the given accounting month, and the expenditure documented in these receipts is recorded in the tax account of revenues and revenues and included in the cost of obtaining income.
Due to doubts about the accounts, the applicant asked the following questions:
Does it have the right to be recorded in the records kept for the purposes of the tax on goods and services and the right to deduct from the tax due the input tax resulting from fiscal receipts documenting expenditure related to economic activity?
Does he have the right to record in the tax statement of revenues and revenues and to include in the cost of obtaining revenue expenses related to the economic activity in question, which the seller has documented in a fiscal receipt?
According to the Director of KIS’s reply, both of these questions can be answered in the affirmative, but certain conditions can be accepted.
Expenditure on the food products concerned may constitute the cost of obtaining income in the business of the trader, provided that they meet the conditions of Article 22(1) Personal Income Tax Act.
According to the Regulation of the Minister of Finance of 23 December 2019 on the keeping of a tax revenue and income account (Journal of Laws of 2019, item 2544) The taxable person has the right to record in the tax statement of revenues and revenues and to include in the cost of obtaining revenue expenditure relating to the economic activity in question, on the basis of a receipt from the NIP of the buyer, which is a simplified invoice equivalent to the ordinary invoice, provided that the expenditure is in the amount 450 PLN gross (100 EUR) and meet the above mentioned conditions Article 22(1) Personal Income Tax Act. This article states that the cost of obtaining revenue is the costs incurred to generate revenue from the source of revenue or to preserve or secure the source of revenue, except for those costs under Article 23(1).
In order for the taxpayer's expenditure to be the cost of obtaining income, he must fulfil the following conditions:
has been borne by the taxable person, i.e. Finally, it must be covered by the taxable person's assets (they do not constitute the cost of obtaining the taxable person's income the expenses incurred for the taxable person's activities by persons other than the taxable person),
is definitive (actual), i.e. the value of the expenditure incurred has not been reimbursed to the taxpayer in any way,
is due to the taxable person’s economic activity,
has been incurred in order to obtain, preserve or hedge the source of revenue or may affect the amount of revenue achieved,
has been properly documented,
may not be included in a group of expenditure which is not considered to be revenue costs according to Article 23(1) Personal Income Tax Act.
Under Article 23(1) The law on income tax on individuals, the legislator has defined a list of expenditures which, even though the taxpayer has incurred them in order to obtain income, or to secure or preserve the source of income, within the meaning of the tax legislation, cannot be considered as the cost of obtaining revenue (see HERE for more information).
It may be noted that the NIP receipt, equivalent to a simplified invoice, does not need to contain the name and address of the buyer of the goods or services. With such invoice value, the data relating to the transaction itself may also be less visible. However, it is important that the document includes the buyer's NIP and data to determine the tax amount for each tax rate.
Individual interpretation with 9 October 2020, reference no. 0113-KDIPT2-1.4011.617.2020.4.AP - Director of National Tax Information