Laptop depreciation - how to do it?

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A laptop is one of the basic assets used in running a business. Accounting for the purchase of this type of equipment is quite difficult for entrepreneurs. How to properly check in a laptop purchase? Can it be shown directly in costs or should it be treated as a fixed asset? How should the laptop amortization work? We explain below.

Laptop - how to book a purchase?

The method of accounting for the purchase of a laptop depends on its value and the expected useful life for business purposes.

The purchase of a laptop should be documented with an invoice or a bill / invoice without VAT. The receipt itself, as a rule, will not constitute the basis for recording the incurred expenditure.

Purchase of a laptop directly at company costs

When the value of the laptop does not exceed PLN 10,000 (net for active VAT payers, gross for entities exempt from VAT) and the expected period of use in the company is longer than 1 year, the purchase can be accounted for directly in tax deductible costs. In the case of taxpayers keeping a revenue and expense ledger, this expense is shown in col. 13 - other expenses.

Example 1.

An entrepreneur who is an active VAT payer purchased a laptop. The transaction has been documented with a VAT invoice:

  • net value: PLN 6,800

  • 23% VAT tax: PLN 1.564

  • gross value: PLN 8,364

How to prove the purchase of a laptop in the KPiR?

In the case of active taxpayers, attention should be paid to the net worth of the asset. Due to the fact that it is lower than PLN 10,000, the expenditure can be shown directly in costs in col. 13 of the KPiR - other expenses. The book value is PLN 6,800 (net value).

Example 2.

An entrepreneur benefiting from a VAT exemption purchased a laptop. This event was documented with a VAT invoice:

net value: PLN 5,500

VAT 23%: PLN 1,265

gross value: PLN 6,765

How to show a purchase in the KPiR?

In the case of entities exempt from VAT, attention should be paid to the gross value of the asset. Due to the fact that it is lower than PLN 10,000, the expenditure can be shown directly in costs in col. 13 of the KPiR - other expenses. The book value is PLN 6,765 (gross value).

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Purchase of a laptop in the fixed asset register

A laptop owned or jointly owned by the entrepreneur, which is complete and fit for use, with an estimated useful life of more than 1 year, should be classified as a fixed asset.

The absolute obligation to enter this type of asset into the fixed assets register applies to FA with a value exceeding PLN 10,000 (net for active VAT payers, gross for entities exempt from VAT).
In the case of a computer with a lower value, the taxpayer may retain the freedom of recording.

Laptop cushioning

A laptop classified as a fixed asset is depreciated. The expenditure is not directly included in the KPiR. The cost is made up of depreciation write-offs. Importantly, tax regulations allow several methods of laptop depreciation:

  • linear method

  • accelerated method

  • individual method

  • one-time method designed for low-value fixed assets

  • one-off method under de minimis aid

  • degressive method

KŚT (classification of fixed assets) for a laptop is 487, that is computer assemblies.

Laptop depreciation using the straight-line method

The basic method of depreciation of assets is the straight-line method. Then, for fixed assets, the depreciation rate is applied, resulting from the classification of fixed assets and the list constituting an appendix to the act. In this case, for a laptop classified under number 487, the annual depreciation rate is 30%.

Example 5.

An entrepreneur who is an active VAT payer on February 18, 2021, purchased a laptop for the purposes of his business. The values ​​on the invoice were as follows:

  • net value: PLN 10,200

  • VAT 23%: PLN 2,346

  • gross value: PLN 12,546

The laptop was classified as a fixed asset. The taxpayer decided to apply straight-line depreciation. How long will my laptop depreciate? How much will the annual and monthly depreciation write-offs be?

Initial value of the laptop: PLN 10,200 (because the buyer is an active VAT taxpayer who made the full deduction).

Annual depreciation charge: PLN 10,200 x 30% = PLN 3,060

Monthly depreciation write-off: PLN 3,060: 12 months = PLN 255

The depreciation period will be 40 months. Depreciation write-offs can be recognized in tax deductible costs, starting from the month following the month the laptop is put into use, i.e. from March 2021. The last depreciation charge will be recognized in the costs of June 2024.

Example 6.

An entrepreneur who is an entity exempt from VAT on March 22, 2021, purchased a laptop for the purposes of his business. The values ​​on the invoice were as follows:

  • net value: PLN 8,700

  • 23% VAT tax: PLN 2,001

  • gross value: PLN 10,701

The laptop was classified as a fixed asset. The taxpayer decided to apply straight-line depreciation. How long will my laptop amortise? How much will the annual and monthly depreciation write-offs be?

Initial value of the laptop: PLN 10.701 (because the buyer is a VAT-exempt taxpayer and is not entitled to a deduction of VAT).

Annual depreciation charge: PLN 10,701 x 30% = PLN 3,210.30

Monthly depreciation charge: PLN 3,210.30: 12 months = PLN 267.52

The depreciation period will be 40 months. Depreciation write-offs can be recognized in tax deductible costs, starting from the month following the month of accepting the laptop for use in the company, i.e. from April 2021. The last depreciation charge will be recognized in costs in July 2024.

Individual linear method of laptop depreciation

The entrepreneur may set individual depreciation rates for used or upgraded laptops classified in group 4 KŚT. This fact results from Art. 22j paragraph. 1 point 1 of the PIT Act: Taxpayers, subject to Art. 22l, they can individually determine the depreciation rates for used or improved fixed assets, first entered into the records of a given taxpayer, except that the depreciation period may not be shorter than for fixed assets included in groups 3-6 and 8 of the Classification:

a) 24 months - when their initial value does not exceed PLN 25,000,

b) 36 months - when their initial value is higher than PLN 25,000 and does not exceed PLN 50,000,

c) 60 months - in other cases.

Importantly, a laptop can be considered used when the taxpayer proves that the equipment was used for at least 6 months before the purchase. On the other hand, a laptop can be treated as upgraded when, before being entered into the records, the expenses incurred by the taxpayer for its improvement constituted at least 20% of the initial value.

The individual method of laptop depreciation (with an initial value of up to PLN 25,000) allows you to apply a maximum depreciation rate of 50%. It results from the fact that the minimum depreciation period in this case cannot be shorter than 2 years.

Example 7.

On February 28, 2021, the entrepreneur purchased a laptop worth PLN 10,500 from a VAT-exempt company. The purchase was documented with an invoice without VAT (bill). The seller (the previous owner) used the laptop for 6 months before the decision to sell it. The buyer, due to the fact that it is used equipment, has decided to use an individual method of depreciation. How will the depreciation work?

The entrepreneur may use the individual amortization method, if, in the event of a possible inspection, he will be able to prove that the laptop was used for a minimum period of 6 months before the purchase.

The taxpayer may apply a depreciation rate of 50% (this is the maximum allowable rate; a lower rate may also be applied).

Annual depreciation charge: PLN 10,500 x 50% = PLN 5,250

Monthly depreciation charge: PLN 5250: 12 months = PLN 437.50

If the maximum rate is applied, the amortization period will be 24 months. The first depreciation write-off may be booked in company costs in March 2021, and the last one in February 2023.

Accelerated linear depreciation of the laptop

Laptop depreciation can be done using accelerated linear depreciation. However, in order to be able to use this method, a number of conditions specified in Art. 22i paragraph. 2 of the PIT Act:

Taxpayers may increase the rates provided in the List of Depreciation Rates:

1) for buildings and structures used in conditions:

a) deteriorated - using coefficients not higher than 1.2,

b) bad - with the use of coefficients not higher than 1.4;

2) for machines, devices and means of transport, with the exception of marine floating rolling stock, used more intensively in relation to average conditions or requiring particular technical efficiency - with the use of coefficients not higher than 1.4 in this period;

3) for machines and devices included in groups 4-6 and 8 of the Fixed Assets Classification (KŚT) issued on the basis of separate regulations, hereinafter referred to as "Classification", subject to rapid technical progress - with the use of coefficients not higher than 2.0.

As specified in the content of the Act, by machines and devices of groups 4-6 and 8 of the Classification of Fixed Assets (KŚT), subject to rapid technical progress, referred to in Art. 22i paragraph. 2 point 3 of the Act, it is understood as machines, devices and apparatus in which microprocessor systems or computer systems are used, fulfilling the assumed functions thanks to the use of the latest technological achievements, as well as other scientific, research and experimental and production equipment.

Laptop depreciation using the accelerated linear method can take place at a maximum rate of 60%. Because the basic rate from the list of rates (30%) can be increased by using a factor of max. 2.0.

Importantly, in the event of the termination of the conditions justifying an increase in the depreciation rate of a laptop, these rates are reduced from the month following the month in which the circumstances justifying these changes occurred.

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Laptop depreciation using a one-time method

An entrepreneur whose laptop meets the requirements for recognizing it as a fixed asset, i.e .:

  • is owned or jointly owned by the taxpayer

  • it is complete and serviceable

  • with an expected useful life of more than 1 year

  • is intended for use by the company

- however, its initial value does not exceed the amount of PLN 10,000 (net for active VAT payers, gross for entities exempt from VAT), it may enter equipment into the register of fixed assets and subject it to one-off depreciation. Then, the depreciation write-off should be included in the tax deductible costs in the month of taking the laptop into use.

Example 8.

An entrepreneur who is an active VAT taxpayer on April 15, 2021, purchased a laptop for business purposes. Values ​​on the purchase invoice:

  • net value: PLN 2,800

  • 23% VAT: PLN 644

  • gross value: PLN 3,444

How much will the one-time write-off be? During what period should it be shown in company costs?

Due to the fact that the buyer is an active taxpayer who has fully deducted the VAT from the purchase invoice, the initial value will be the net amount from the invoice (PLN 2,800). Due to the low initial value (below PLN 10,000), the entrepreneur may apply a one-time depreciation. The depreciation write-off can already be shown in the costs of April 2021.

Example 9.

An entrepreneur benefiting from a VAT exemption on May 5, 2021, purchased a laptop for business purposes. Values ​​on the purchase invoice:

  • net value: PLN 2,700

  • 23% VAT tax: PLN 621

  • gross value: PLN 3,321

How much will the one-time write-off be? During what period should it be shown in company costs?

Due to the fact that the buyer is an entity exempt from VAT, according to the purchase invoice, the initial value will be the gross amount from the invoice (PLN 3,321).Due to the low initial value (below PLN 10,000), the entrepreneur may apply a one-time depreciation. The depreciation charge can be shown in the costs of May 2021.

In the case of a laptop with an initial value exceeding PLN 10,000, one-time depreciation can also be applied as part of de minimis aid, provided that the buyer is the so-called small taxpayer or new entrepreneur. More on this in the article: De minimis aid - One-time depreciation.
One-time depreciation may also be used in the case of brand new computers with a value above PLN 10,000, more about that in the article: Depreciation of new fixed assets in practice.

Laptop degressive depreciation method

Laptop depreciation can be done using a degressive method. This solution was allowed by Art. 22k paragraph. 1 of the PIT Act:

Depreciation write-offs can be made from the initial value of machinery and equipment included in groups 3-6 and 8 of the classification and means of transport, with the exception of passenger cars, in the first tax year of their use using the rates given in the list of increased depreciation rates, subject to paragraph 2, by a factor of not more than 2.0, and in the following tax years from their initial value less the current depreciation, established at the beginning of subsequent years of their use. Starting from the tax year in which the annual amount of depreciation so determined would be lower than the annual amount of depreciation calculated using the method specified in art. 22i paragraph. 1, taxpayers make further depreciation in accordance with article 5. 22i.

The first depreciation charge determined with this method should be included in company costs in the month following the month of commissioning.

To sum up, the purchase of a company laptop can be settled in several ways, which depends on the initial value of the purchased equipment, as well as on the company's tax optimization needs. Acceptable methods include showing the expense directly in tax costs (low-value assets) or depreciation of the laptop over time. Nevertheless, the final decision regarding the settlement rests with the entrepreneur, however, it must be in accordance with the applicable regulations.