Equipment record - rules of conduct

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Equipment record was a mandatory element of the conducted activity in a situation where entrepreneurs have components that are not fixed assets in their property. The article explains which property should be included in the inventory of equipment and which taxpayers were required to record the property in this record.

When do you need to keep an inventory of equipment?

The obligation to keep a register of equipment was specified in the provisions of the Ordinance of the Minister of Finance of August 26, 2003 on keeping a tax book of revenues and expenses. In accordance with the content of par. 4 of this Regulation, natural persons, civil partnerships of natural persons, general partnerships of natural persons and partnerships, carrying out economic activity, obliged to keep a book of revenues and expenses, are required to keep records of fixed assets and intangible assets - in accordance with art. 22n paragraph. 2-6 of the Personal Income Tax Act - and inventory of equipment.

This obligation applied to both business entities settling on the basis of the tax revenue and expense ledger (until the end of 2019) and lump sums (until the end of 2018).

According to Art. 15 of the flat-rate tax act, taxpayers and companies whose partners are taxed in the form of a lump sum on recorded revenues are required to keep a list of fixed assets and intangible assets, and were also to keep records of equipment. From January 2019, the obligation for taxpayers to keep equipment records was abolished, and from January 2020 for KPiR operators

The obligation to keep records of equipment does not apply to taxpayers taxed in the form of a tax card and persons who earn income from private rental.

What should be included in the inventory of equipment?

Equipment is tangible property related to the activity performed, not classified as fixed assets in accordance with the provisions on income tax. This means that an item of equipment that had to be entered into the equipment register is an asset that meets two conditions:

  • the expected period of use is less than one year,
  • the value of its acquisition or production exceeds PLN 1,500.

The equipment record included the assets used in the business for a period of less than 1 year, the purchase or production value of which exceeds PLN 1,500 (i.e. at least PLN 1,500.01). This does not mean, however, that lower value assets are not equipment, but that they simply do not have to be entered in the records. Thus, the inventory of equipment included assets with a value greater than PLN 1,500.

Example 1.

The taxpayer purchased a machine for the needs of the business. The purchase value of this machine was PLN 6,000. However, he has only purchased it for the purpose of executing a specific order for the client and will only use it for 6 months.

Due to the purchase value above PLN 1,500 and the useful life of up to one year, the purchased property should be included in the equipment register.

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What elements are included in the inventory of equipment?

The regulations did not define the template for the inventory of equipment, but indicated its necessary elements.

The equipment record kept should contain at least:

  • consecutive number of the entry,
  • date of purchase,
  • invoice or bill number,
  • equipment name,
  • purchase price of equipment or production cost,
  • number of the item under which the cost related to the purchase of equipment was entered in the book (applies only to taxpayers keeping a tax book of revenues and expenses),
  • the date of decommissioning (including the date of sale or donation) and the reason for the decommissioning of the equipment.

Taxpayers who, during the tax year, lost or waived the right to flat-rate income tax in the form of a tax card, or for whom the inventory of equipment is established for the first time, valued the equipment at purchase prices or at market value on the day the records were established.

The taxpayer was obliged to make entries in the equipment register no later than in the month of putting the equipment into service.

Example 2.

On May 31, 2018, the taxpayer purchased a computer with a value of PLN 1700 and the expected useful life of the company belowa year. On June 1, the computer was commissioned.

The taxpayer should enter the equipment in the register of equipment no later than June 30, 2018.

Finally, it should also be noted that in a situation where the inventory of equipment was not kept, it was also possible to include the expenditure for the purchase of a given item of equipment as tax deductible costs, however, the taxpayer was subject to a penalty for not keeping the records.