Cash register and cultural and entertainment services

Service-Tax

The Value Added Tax Act requires VAT payers to record their sales using a cash register under certain circumstances. Although under the ordinance of the Minister of Finance and Development on exemptions from the obligation to keep records with the use of cash registers, certain groups of taxpayers may avoid the need to have a cash register, there is still a catalog of activities the performance of which deprives you of the right to benefit from the exemption. The scope of these activities was extended from January 1, 2018. When is the cash register mandatory?

Cash register in the light of the VAT Act

Considerations on the necessity of having a cash register by VAT payers should start with reference to Art. 111 sec. 1 of the VAT Act. This provision specifies that taxpayers selling to natural persons who do not conduct business activity and flat-rate farmers are required to keep records of turnover and amounts of tax due with the use of cash registers. It is also worth pointing to the content of Art. 111 sec. 8 of the VAT Act, which provides that the minister competent for public finance may exempt, by way of a regulation, for a specified period of time, certain groups of taxpayers and certain activities from the obligation to have a cash register, and define the conditions for using the exemption, taking into account the public interest, in the situation of the state budget in particular.

The Minister of Finance and Development took advantage of the above delegation by issuing on December 28, 2018 the regulation on exemptions from the obligation to keep records using cash registers.

Terms and conditions of using the exemption

The quoted regulation specifies temporary exemptions for certain groups of taxpayers and certain activities from the obligation to keep records of turnover and amounts of tax due using cash registers and the conditions for using the exemption.

It should be noted that the wording of the regulation provides for two types of exemptions. The first, described in § 2 of the regulation, is referred to as the objective exemption. Pursuant to this provision, the activities listed in the annex to the regulation are released from the obligation to record in a given tax year, but not longer than until December 31, 2021. This means that the taxpayer may benefit from the tax exemption for the mere fact of performing the activity described in the appendix.

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On the other hand, the second category of exemptions, characterized as a subjective exemption, relates to the turnover of a given taxpayer. In the light of § 3 of the regulation, taxpayers whose turnover for natural persons not conducting business activity and flat-rate farmers did not exceed 20,000 in the previous tax year are exempt from the obligation to record in a given tax year, but not longer than until December 31, 2018. PLN, and in the case of taxpayers starting in the previous tax year the supply of goods or services to natural persons who do not conduct business activity and flat-rate farmers, if the turnover on this account did not exceed, in proportion to the period of performing these activities in the previous tax year, the amount of PLN 20,000 .

Activities completely excluded from dismissal

However, there is a group of activities consisting both in the delivery of specific goods and the provision of specific services, which have been excluded from the possibility of using the exemption (subjective or objective) from the obligation to register at the cash register. As a consequence, a cash register must be kept for a certain category of sale. The catalog of these activities is described in § 4 section 1 point 1 and point 2 of the Regulation.

From January 1, 2018, the legislator decided to add new services, the provision of which obliges taxpayers to keep records using a cash register. For as lithium is constituted k-m § 4 sec. 1 point 2 of the Regulation, exemptions from the obligation to record shall not apply to the provision of services:

  • cultural and entertainment - only in the scope of admission to circus performances,
  • related to entertainment and recreation - only in the field of admission to amusement parks, discos, dance halls.

The minister responsible for public finances indicates that adding new services subject to mandatory registration with the use of a cash register is primarily aimed at tightening the VAT system and ensuring the inflow of additional funds to the state budget.