Cash register for a graphic designer - is it obligatory?
Pursuant to the VAT Act (Article 111 (1)), entrepreneurs selling to natural persons who do not conduct business and flat-rate farmers are required to keep sales records using a cash register.However, the ordinance of the Minister of Finance provides for exemptions that taxpayers may use (provided that they do not perform activities that are not applicable). Read the article and find out if the cash register for a graphic designer is always a must!
Cash register for a graphic designer and subjective exemption
The regulation of the Minister of Finance and Development provides for subjective exemptions from recording sales at the cash register.
Pursuant to § 3 sec. 1 is released from the obligation to record sales made to private persons and lump-sum farmers in a given tax year at the cash register, but not longer than until December 31, 2018:
taxpayers whose turnover for natural persons not conducting business activity and flat-rate farmers did not exceed PLN 20,000 in the previous tax year, and in the case of taxpayers starting in the previous tax year, the supply of goods or services to natural persons not conducting business activity and flat-rate farmers if the turnover on this account did not exceed the amount of PLN 20,000 in proportion to the period of performing these activities in the previous tax year;
taxpayers starting after December 31, 2017 the supply of goods or services to natural persons who do not conduct business activity and flat-rate farmers, if the turnover expected by the taxpayer on this account does not exceed, in proportion to the period of performing these activities in a given tax year, the amount of PLN 20,000 zloty;
taxpayers who supply goods or provide services exempt from the obligation to register, listed in Part I of the Annex to the Regulation, where the share of turnover due to activities exempt from the obligation to register, listed in Part I of the Annex to the Regulation, in the total turnover of the taxpayer for the benefit of natural persons not conducting economic activity and flat-rate farmers, hereinafter referred to as "the percentage of turnover", was in the previous tax year higher than 80%;
taxpayers starting the supply of goods or services to natural persons not conducting business activity and flat-rate farmers after 31 December 2017, if the percentage of turnover expected by the taxpayer:
for the first six months of performing these activities,
for the period until the end of the year, if the period of performing these activities in the tax year is shorter than six months - will be higher than 80%;
local government units in the scope of activities performed by their organizational units referred to in Art. 2 point 1 of the Act of 5 September 2016 on special rules for settling tax on goods and services and reimbursement of public funds allocated for the implementation of projects financed with funds from the budget of the European Union or from the Member States of the European Free Trade Association by local government units territorial (Journal of Laws, item 1454 and 1948):
which as at December 31, 2016 benefited from the exemption referred to in Art. 8 sec. 2 of this act, or
if their organizational units as of December 31, 2016 were exempt from such obligation.
More information on the subject exemption from the cash register can be found in the article: Exemption from the cash register based on the turnover structure.
Cash register for graphic designer - objective exemption
In some cases, due to the type of services or goods supplied, it is not possible to take advantage of the cash register exemption regardless of the turnover. Pursuant to § 4 sec. 1 of the Regulation of the Minister of Development and Finance of 20 December 2017 on exemptions from the obligation to keep records using cash registers, exemptions from the obligation to record, shall not apply in the case of:
- liquid gas,
- engine parts (PKWiU 28.11.4),
- internal combustion engines of a kind used for propulsion of vehicles (PKWiU 29.10.1),
- bodywork for motor vehicles (PKWiU 29.20.1),
- trailers and semi-trailers; containers (PKWiU 29.20.2),
- parts of trailers, semi-trailers and other vehicles without mechanical drive (PKWiU 220.127.116.11),
- parts and accessories for motor vehicles (excluding motorcycles) not elsewhere classified (PKWiU 18.104.22.168),
- internal combustion piston engines of a kind used in motorcycles (PKWiU 30.91.3),
- radio, television and telecommunications equipment, excluding electron tubes and other electronic components as well as parts for apparatus and devices for sound and image manipulation, antennas (PKWiU ex 26 and ex 27.90),
- photographic equipment, excluding parts and accessories for photographic equipment and accessories (PKWiU ex 26.70.1),
- goods made of precious metals or with the participation of these metals, the supply of which cannot benefit from the exemption from the tax referred to in article 2. 113 paragraph. 1 and 9 of the Act of March 11, 2004 on tax on goods and services, hereinafter referred to as the "Act",
- recorded and unsaved digital and analog data carriers,
- products intended for use, offered for sale or used as motor fuels or as additives or admixtures to motor fuels, regardless of the PKWiU symbol, Journal of Laws - 3 - Item 2454,
- tobacco products (PKWiU 12.00), alcoholic beverages with an alcohol content above 1.2% and alcoholic beverages containing a mixture of beer and non-alcoholic beverages with an alcohol content exceeding 0.5%, regardless of the PKWiU symbol, excluding goods delivered on board airplanes ,
- perfumes and toilet waters (PKWiU 22.214.171.124), excluding goods delivered on board airplanes;
- provision of services:
- passenger transport in road communication, with the exception of transport mentioned in item 15 and 16 of the Annex to the Regulation,
- transport of people and their hand luggage by taxis,
- repair of motor vehicles and mopeds (including tire repair, fitting, retreading and regeneration),
- as regards the replacement of tires or wheels for motor vehicles and mopeds,
- in the field of tests and technical inspections of vehicles,
- in the field of medical care provided by doctors and dentists, with the exception of services provided by persons listed in item 51 of the Annex to the Regulation,
- law enforcement, with the exception of the services specified in item 28 of the annex to the regulation, h) tax consultancy,
- related to catering (PKWiU 56), only: - provided by stationary catering establishments, including seasonally, and - food preparation services for external recipients (catering),
- hairdressing, cosmetic and cosmetology,
- 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, amusement parks, discos, dance halls,
- in the field of currency exchange, with the exception of services provided by banks and credit unions.
As can be seen from the above, the services provided by the graphic designer have not been indicated as activities that cannot benefit from the cash register exemption. Therefore, a cash register for a graphic designer is not necessary, provided that it does not exceed the annual turnover limit of PLN 20,000.
As part of the business, the taxpayer provides graphic services. In the previous tax year, the turnover for natural persons not conducting business activity and for lump-sum farmers amounted to PLN 15,000 for this entrepreneur. Can he benefit from an exemption from the cash register in 2018?
Yes, due to the fact that the turnover limit of PLN 20,000 has not been exceeded, the taxpayer may benefit from the exemption from the cash register in 2018.
Cash register for a graphic designer - summary
To sum up - a cash register for a graphic designer is not always necessary. In a situation where it does not exceed the turnover limit of PLN 20,000 for the benefit of private individuals and lump-sum farmers, it does not have to register the sale at the cash register.