KW as the basis for posting in the KPiR
In the course of running a business, there may be a situation when the entrepreneur will only have a document "Cash will pay" (KW) issued by him to confirm that a given cost has been incurred. In such a case, is it possible to include the documented expenditure in such a way as tax deductible costs by the entrepreneur keeping the tax book of revenues and expenses? The answer is in the affirmative, provided that the evidence meets the conditions set out in the relevant provisions. This position was supported by the Director of the Tax Chamber in Poznań in the Individual Ruling of January 25, 2013 (reference number ILPB1 / 415-1054 / 12-2 / IM) in his interpretation.
Linking the expense with economic activity
The possibility of including a given expense in the company's costs depends on the fulfillment of the requirements specified in Art. 22 sec. 1 of the Personal Income Tax Act. Pursuant to this provision, in order for a given expense to be classified as tax deductible costs, the following conditions must be met - the expense:
- should be incurred in order to obtain income or to maintain or secure a source of income,
- should not be among the non-tax deductible expenses referred to in Art. 23 above acts,
- should be properly documented.
Failure to meet any of the above prerequisites exclude the possibility of classifying a given expense as tax deductible costs. As is clear from the quoted Art. 22 sec. 1, one of the conditions is the appropriate documentation of the expenditure incurred. This issue is resolved by the regulation of the Minister of Finance on keeping a tax book of revenues and expenses.
The basis for entry in the KPiR
There should be no doubt that the basis for classifying an expense related to the conducted activity as tax deductible costs may be a properly issued invoice or bill. However, the provisions of the regulation contain a provision that the accounting voucher may also include other evidence confirming the fact that a business transaction was carried out in accordance with its actual course and containing at least:
- reliable identification of the issuer or indication of the parties (name and addresses) participating in the business operation to which the proof relates,
- the date of issue of the proof and the date or period of the economic operation to which the proof relates, provided that if the date of the economic transaction corresponds to the date of issue of the proof, it is sufficient to indicate a single date,
- the object of the economic operation and its value as well as its quantification, if the object of the operation is measurable in natural units,
- signatures of persons authorized to properly document business operations
- marked with a number or in any other way enabling the proof to be linked with accounting entries made on its basis (paragraph 12 (3) of the Regulation).
In accordance with par. 13, other proofs of fees (apart from proofs of postage and bank charges), including those made on the basis of payment books, and documents containing the data referred to in par. 12 sec. 3 point 2.
Additionally, par. 14 above The regulation specifies that the documentation of entries in the book may take place on the basis of prepared documents with a date and signatures of persons who made direct expenses (internal evidence), specifying when purchasing: the name of the goods and the quantity, unit price and value, and in other cases - the subject of the operation economic and the amount of cost, but limiting this possibility to exhaustively indicated expenses.
KW as an accounting voucher
The KW document is an accounting confirmation that certain funds have been released from the company's cash register. As the Director of the Tax Chamber in Poznań stated: If (...) a natural person conducting business activity makes purchases for the purposes of business activity from natural persons who do not conduct business activity, then the documents constituting the basis for the entry in the tax book of revenues and expenses may be other documents containing the data referred to in par. . 12 sec. 3 point 2 of the above-mentioned regulation.
To sum up, if the prepared KW will contain the following data:
- identification of,
- ID number,
- data of the transferor and the host,
- the date of the activity,
- value of the activity,
- signatures of the cash recipient and the payer,
it may constitute the basis for recording a given expense as a cost in the book of revenues and expenses.