Cash register for transport services - is it necessary?

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Transport is the performance of transport tasks for an appropriate fee. They result in the transport of people and materials, and the provision of additional services that are associated with these transports. Transport services have become a separate field of economic activity and are developing more and more dynamically. Entrepreneurs who provide transport services must meet a number of obligations. One of them is the correct recording of revenues. Check if a cash register for transportation services is necessary.

Cash register for transport services and the VAT Act

The obligation to record sales on the cash register results from Art. 111 sec. 1 of the VAT Act, according to which 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 using cash registers. At the same time, the minister responsible for finance issued an ordinance under which certain activities are exempt from the obligation to record sales at the cash register. However, can transport services benefit from such an exemption?

Provision of passenger transport services and the cash register

The regulation of the Minister of Development and Finance on exemptions from the obligation to keep records using cash registers, in § 4 lists the activities that absolutely oblige to record sales at a cash register.

Pursuant to § 4, the exemptions from the obligation to record, referred to in § 2 and § 3, do not apply to the provision of passenger transport services in road communication, with the exception of transports listed in item 15 and 16 of the Annex to the Regulation, that is:

  • other passenger, urban and suburban land transport - relating only to scheduled urban passenger transport, other than rail, for which prices are charged determined by the commune (Council of the Capital City of Warsaw) or the municipal association,

  • Passenger land transport, scheduled: intercity and specialized - relating only to scheduled urban passenger transport, other than rail, for which prices are charged determined by the commune (Council of the Capital City of Warsaw) or the municipal association.

Therefore, if the taxpayer intends to sell passenger transport services as part of his business, then he will have to register this sale at the cash register from the first day of sale. He is not entitled to use any exemption from recording sales at the cash register.

The above is confirmed by the individual ruling of December 10, 2012 issued by the Director of the Tax Chamber in Warsaw, no. PPP2 / 443-893 / 12-2 / RR:

(...) The circumstances presented in the application show that the Applicant conducts business activity. Currently, in business activity, (...) a bus for passenger transport (52 seats) was purchased, and the activity extended to the activity of PKD 49.39.Z - other passenger land transport not elsewhere classified, i.e. occasional coach rental with a driver, excursion and tourist and occasional bus services running without a fixed schedule. (...) Occasionally, it also provides services to natural persons who do not conduct business activity, e.g. when transporting a group of people to e.g. a wedding or a funeral. (...)

In the case in question, it is important that the services performed by the Applicant are irregular transports and it is important that these are not transports referred to in item 15 and 16 of the Annex to the Regulation. (...)

Therefore, bearing in mind the above provisions of the tax law and the description of the case, it should be stated that in the circumstances presented by the Applicant, in which services consisting in the transport of a group of people are provided at the request of a natural person not conducting business activity - these activities pursuant to § 4 section 1 point 2 of the Regulation as services of irregular passenger transport are excluded from the exemption from the obligation to record at the cash register.

In view of the above, the Applicant will be obliged to keep records of turnover and amounts of tax due with the help of a cash register for the first passenger transport service provided to a natural person not conducting business activity - which results from § 4 sec. 1 point 2 of the Regulation. (...)

Example 1.

The taxpayer intends to start a business in which he will provide transport services for private persons, e.g. for weddings or other special events. Therefore, these services will be occasional. Does the sale have to be recorded by the taxpayer at the cash register, or can he benefit from the exemption?

In a situation where the taxpayer intends to sell passenger transport services to natural persons who do not conduct business activity, then he will have to register them at the cash register from the first day of sale.

Transport of goods and the cash register

In the case of the provision of goods transport services to natural persons who do not conduct business activity, the exemption referred to in § 3 of the above-mentioned regulation applies. According to it, the following are exempted from the obligation to record in a given tax year, 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.

In connection with the above, if the taxpayer's turnover for the benefit of natural persons who do not conduct business activity does not exceed PLN 20,000, he is not obliged to record the sale at the cash register. However, it should be remembered that if the taxpayer starts providing transport services to private persons during the year, the limit of PLN 20,000 is calculated proportionally to the period of performing these activities in a given tax year.

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Example 2.

Mr. Kazimierz started providing goods transport services on July 1. The first sale to natural persons not conducting business activity was made on July 15th.

Then, until the limit is exceeded, there is no obligation to record the sale at the cash register. However, due to the fact that the provision of services began during the course of the year, it is necessary to proportionately establish a limit, beyond which it will be necessary to install a cash register.

How to calculate the limit: (full limit amount / total number of days in a given year) x number of days from the date of sale to the end of the year:

(20,000 / 365 days) x 170 days = PLN 9,315.07.

This means that the exemption from the cash register will apply until the limit of PLN 9,315.07 is exceeded.

Until the sales limit is exceeded, the taxpayer may document the sale by means of non-account sales records. However, in order to correctly calculate the limit, you can use the limit calculator for the cash register.