Discount for the purchase of a cash register for a non-VAT - how to use it?

Service-Tax

Entrepreneurs selling to natural persons who do not conduct business activity, as a rule, should record their income at the cash register. Of course, there are a number of exemptions from the obligation to have a cash register, but not every taxpayer is able to meet their conditions. The purchase of a cash register is a considerable expense for the taxpayer's budget, so it is worth taking advantage of the tax relief for the purchase of a cash register. Moreover, it is important that a tax relief for the purchase of a cash register for a non-VAT payer is also possible. How will the tax relief for the purchase of a cash register be settled with a taxpayer exempt from VAT?

Tax relief for the purchase of a cash register for a non-VAT payer and an active VAT payer - rules of deductions

Pursuant to the provisions of the VAT Act, taxpayers who have purchased a cash register and register sales to natural persons who do not conduct business activity and flat-rate farmers, may benefit from a tax relief for the purchase of a cash register. It consists in the possibility of deducting from the tax the amount spent on the purchase of the device in the amount of 90% of the net purchase price, but not more than PLN 700. From May 1, 2019, the discount is available only for online cash registers.

However, the relief for the purchase of a cash register (including the relief for the purchase of a cash register for a non-VAT payer) is granted only after meeting the conditions provided for in the Regulation of the Minister of Finance on the deduction and refund of amounts spent on the purchase of cash registers. In particular, it is about:

  • starting the keeping of sales records by the taxpayer using the cash register purchased during the validity period of the confirmation referred to in art. 111 sec. 6b of the VAT Act;

  • having an invoice by the taxpayer confirming the purchase of the cash register and proof of payment of the entire amount due for its purchase

Active VAT taxpayers make a deduction in the tax return submitted for the tax period in which the use of the cash register began - or for the following periods. Relief for the purchase of a cash register for non-VAT is also possible, but he does not submit a tax declaration (JPK_V7), so how to deduct it?

Tax relief for the purchase of a cash register for non-VAT - formal issues

In the case of taxpayers benefiting from VAT exemption pursuant to art. 113 paragraph. 1 and 9 of the VAT Act or performing only non-taxable activities, the application of the tax relief for the purchase of a cash register is slightly different.

In order to take advantage of the tax relief for the purchase of a cash register, the exempt taxpayer must submit a written application to the head of the competent tax office at the earliest in the month following the month in which the sales records were started. The application should include: the name and surname of the taxpayer, his address details and the tax identification number, and in the case of taxpayers providing passenger transport services and their hand luggage by taxi - additionally information about the license number for road transport by taxi and the registration and side number of the taxi, in which the cash register is installed. Additionally, the account number to which the return should be made should be indicated.

In order for the tax relief for the purchase of a cash register for a non-VAT payer to be realized, the following documents must be attached to the application:

  • a copy of the invoice documenting the purchase of a cash register along with a copy of the receipt for payment of the entire amount due,

  • a copy of the daily report from the cash register confirming the start of keeping sales records using the online cash register,

  • in the case of taxpayers providing passenger transport services and their hand luggage by taxi - a copy of a certificate of re-verification of a taximeter cooperating with a special purpose cash register, used to keep records when providing these services, including one integrated in one housing with the cash register.

After submitting the application, the tax office will refund the appropriate amount (90% of the net value, but not more than PLN 700) to the bank account indicated by the taxpayer by the 25th day from the date of submitting the application.

The obtained relief for the purchase of a cash register for a non-VAT as well as for an active VAT payer does not constitute income from activity, so taxpayers do not have to show taxable income.