Income records - everything you need to know

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Income records - basic information

The obligation to keep records of revenues applies to taxpayers who settle their accounts in the form of a lump sum on recorded revenues. This is stated in the Ordinance of the Minister of Finance of December 17, 2002 on keeping records of revenues and a list of fixed assets and intangible assets (Journal of Laws No. 219, item 1836, as amended). See what a revenue record is and how to keep it.

When settling income in the form of a lump sum depending on the type of activity performed, the tax is paid at the appropriate rate. We distinguish 5 rates: 3%; 5.5%; 8.5%; 17% and 20%.

Lump sum rates depending on the source of income

Rate

Source of income

3%

  • from catering activities, except for revenues from the sale of beverages with an alcohol content above 1.5%,

  • from service activities in the field of trade,

  • from the provision of services related to animal production,

  • from the activities of sea and floodplain fishermen in the sale of fish and other raw materials from their own catches, with the exception of the sale of canned goods and preserves of fish and other raw materials from the catch,

  • from the sale of movable assets used in non-agricultural business activities against payment.

5,5%

  • from manufacturing activities, construction works or in the field of cargo transportation using a fleet of vehicles with a capacity of more than 2 tons,

  • from the commission obtained from commercial activities in the sale of single-use public transport tickets, stamps for monthly tickets, postage stamps, tokens and magnetic cards for vending machines.

8,5%

  • from service activities, including revenues from catering activities in the sale of beverages with an alcohol content above 1.5%,

  • related to fire fighting and fire prevention,

  • for the provision of services related to the activities of botanical and zoological gardens as well as nature protection areas and objects,

  • from the activity consisting in the production of objects (products) from the material entrusted by the ordering party,

  • from the commission obtained by the commission agent on sale under a commission contract,

  • from a commission obtained by a press distributor under a contract for distribution of the press.

17%

  • from the provision of services:

    • reproduction of computer information carriers,

    • intermediation in wholesale,

    • parking and piloting in sea and inland waters,

    • related to the hotel industry and the organization of organized trips and holidays,

    • related to the issuing of game and software packages,

    • consultancy in the field of computer hardware,

    • data processing,

    • contract property management, both in terms of lease and maintenance of good technical condition,

    • renting and leasing cars and other means of transport,

    • mediation in hiring employees,

    • photographic,

    • organization of counseling services for children with educational problems,

    • social assistance for the elderly, disabled and unemployed.

20%

  • income earned in liberal professions.

In this way, entities that:

  • achieved revenues in excess of EUR 150,000 in the previous year, this limit does not apply to companies that start operations during the year.

The revenue record is kept separately for each tax year, and only the revenue from the business is recorded. Costs are not recorded as they are not taken into account when determining the amount of tax. All entries in the revenue record must be supported by appropriate documents that must be kept in the event of an inspection by the tax office. However, it is worth remembering that there is no obligation to issue an invoice or bill to a natural person who does not conduct business, if he does not request it. In this case, entries in the revenue record are made on the basis of an internal voucher issued at the end of the day.

Subscriptions are made on the basis of:

  • issued VAT invoices,

  • invoices and correction notes,

  • bills,

  • customs documents.

Important!

The taxpayer is required to provide a brochure and number the pages.

Due tax advance and settlement methods with the tax office

The due tax advance is calculated as follows: the value of social security contributions, donations for social purposes and expenses covered by the rehabilitation relief are subtracted from the total income for the entire settlement period. The obligation to settle accounts with the tax office can be made monthly or, if we meet the conditions, after prior notification on a quarterly basis. If the income does not exceed the equivalent of EUR 25,000, taxpayers may use quarterly returns.

By the 20th day of each month, you must settle accounts with the tax office by paying advances for the previous month. The final tax settlement is made by 31 January for the previous year, when submitting the PIT-28 tax return, at the same time, due contributions for the month of December must be paid by the same date.

If the entity had income from other sources not included in the declaration, it is obliged to submit an appropriate tax return by 30 April, in which it will not include the income shown in the PIT-28 tax return.

Important!

Pursuant to the Act of 20 November 1998 on flat-rate income tax on certain revenues earned by natural persons, business income is considered to be amounts due, even if they have not been actually received, after excluding the value of the returned goods, discounts and rebates granted. In the case of taxpayers selling goods and services subject to VAT, the revenue from this sale is considered to be revenue less output VAT.

Revenue records - how to keep

The taxpayer is required to keep records in a reliable and non-defective manner. Fairness means making records in accordance with the actual state of affairs, faultlessness refers to keeping records in accordance with the relevant legal regulations.

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The revenue record is considered reliable and non-defective, also when:

  1. incorrect or unwritten amounts of revenue do not exceed 0.5% of the revenue shown for the tax year or until the inspection and finding an error by the head of the tax office or the control authority,

  2. lack of appropriate entries resulting from a random event or accident that prevented the taxpayer from making entries,

  3. the entries or corrections were completed before the start of the control,

  4. errors are the result of an obvious mistake, and the taxpayer has evidence of income.

Income records - kept independently or by an accounting office

It is possible to keep records both manually and with the use of specialized programs, however, an appropriate tabular structure must be kept. Entries are made chronologically, no later than by the 20th day of the month for the previous month.

There is no obligation to inform the tax office about the start of keeping records, the exception is when we order an accounting office to keep records of revenues. In this case, 7 days from the date of concluding the contract with the accounting office, information about the place of keeping the records should be reported to the tax office. If we keep a record of revenues, it should be kept in the place of business or indicated as the company's seat.

Sanctions for incorrect keeping of revenue records

Criminal sanctions may result from failure to maintain or maintain inaccurate or defective revenue records. A taxpayer who does not keep or does not keep a record of income may take into account that the tax office will estimate his income and determine a lump sum of 5 times the normal lump sum for income. However, it cannot exceed 75% of income. Failure to comply with the information obligation regarding the transfer of revenue records to other entities and actions detrimental to faultlessness or reliability are also crimes, but are subject to lower penalties.