Physical inventory as of the day of commencement of operations


An entrepreneur starting a business based on a tax book of revenues and expenses is required to draw up and include in the records a physical inventory on the day of starting the business. Check what is included in such a list and how it should be prepared!

Physical inventory - obligation to prepare

This obligation results from § 24 of the Regulation on the operation of the KPiR. Pursuant to the above paragraph, taxpayers are required to prepare a physical inventory:

  • on January 1,
  • at the end of each tax year,
  • on the day of commencement of operations during the tax year,
  • in the event of losing the right to pay flat-rate income tax within a year,
  • in the event of a change of shareholder,
  • in the event of a change in the proportion of shareholders' shares,
  • on the day of liquidation of the activity.

The obligation to prepare a physical inventory as at 1 January of the tax year does not apply to taxpayers who have prepared a physical inventory at the end of the previous tax year. In this case, instead of the physical inventory as of 1 January of the tax year, the book is entered with the physical inventory prepared as of 31 December of the previous tax year.

The initial inventory should only include:

1) commercial goods, i.e. goods purchased for resale

2) materials, i.e. basic and auxiliary raw materials needed for production.

This applies to goods and materials that were purchased by the entrepreneur before the establishment of the company and belonged to his private property, and are now handed over to the company.

The initial inventory does not include goods constituting the company's property, such as computers, telephones or cars, which are transferred to the company from private property.

No assets and inventory

The lack of assets that are included in the physical inventory does not release the taxpayer from the obligation to prepare it. Information about the physical inventory, the value of which is zero, should also be included in the KPiR as the first entry in the book.

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What data should a physical inventory contain?

The required elements of the initial inventory are regulated by § 25 of the Regulation on the conduct of the KPiR. According to which, the physical inventory should contain at least the following data:

  • name and surname of the plant owner (company name),
  • date of the inventory,
  • sequence number of the physical inventory sheet item,
  • detailed description of the goods and other ingredients listed in § 24,
  • unit of measure,
  • the amount found during the census,
  • price in PLN and grosze per unit of measurement,
  • the value resulting from the multiplication of the quantity of the product by its unit price,
  • the total value of the physical inventory,
  • value resulting from the multiplication of the quantity of other ingredients listed in § 24 by their unit price,
  • the total value of the census,
  • the clause "The list has been completed on the item ...",
  • signatures of persons drawing up the list and signature of the plant owner (partners).

You do not need to inform the tax office about the fact of making a physical inventory. This obligation was lifted in September 2018.

Valuation of elements and inventory of nature

The taxpayer, in accordance with § 26 section 1 of the regulation, is obliged to evaluate the materials and commercial goods included in the physical inventory at purchase or acquisition prices or at market prices from the date of the inventory, if they are lower than the purchase or acquisition prices.

The nature inventory of semi-finished products (semi-finished products), finished products and shortages of own production is valued at manufacturing costs.

Utility waste, which has lost its original value in use in the course of business, is measured at the value resulting from the estimation taking into account its suitability for further use.

Initial physical inventory in the system

In the system, the value of drawing up the initial inventory should be entered according to the following scheme: RECORDS »REMANENTS» ADD REMANENT »INITIAL REMANENT.

The initial inventory will go to the 15th column of the revenue and expense ledger. Its value will be included in the annual invoice.