Construction services - correct recognition of expenses in the KPiR


Construction services - records in KPiR

Taxpayers performing construction services very often have a problem with proper recording in the book of revenues and expenses related to their activity. There are doubts as to which costs should be included in column 10 and which in column 13.

In this article, I will try to explain how to show expenses for the purpose of providing renovation and construction services in the KPiR.

Example 1.

The taxpayer conducts business activity consisting in the provision of renovation and construction services. As part of the activities performed, he buys glaze, paints, brushes, discs and drills.


How to enter the incurred costs into the book of costs and revenues?


The purchase costs of glaze, plaster, glue or paint should be reported in column 10 of the KPiR “Purchase of commercial goods and materials according to purchase prices”. On the other hand, all kinds of tools necessary to perform renovation and construction services should be entered in column 13 of the KPiR "Other expenses", ie brushes, discs, drills. 

Materials and goods in construction services

The purchase of brushes, drills, discs, putties, etc. certainly constitutes a tax-deductible cost for the taxpayer. These items are used to perform the construction services provided, without them their implementation would not be possible. They should be disclosed in column 13 of the KPiR, which is used to record other expenses. The above-mentioned items constitute small equipment for the taxpayer.

However, to understand why the purchase of glaze, paint and glue should be listed in column 10 of the KPiR, it is necessary to explain what the materials and commercial goods are.

Start a free 30-day trial period with no strings attached!

The Ordinance of the Minister of Finance on keeping a tax book of revenues and expenditures precisely regulates these concepts (§ 3 section 1):

“Basic materials (raw materials) are materials that become the main substance of the finished product during the production process or during the provision of services; basic materials also include materials constituting a component (assembly) part of the product or connected closely with the product (eg packaging - cans, bottles) and reusable shipping packages (eg transporters, pallets), if these packages are not fixed assets ”.


“Trade goods are goods intended for sale unprocessed; trade commodities are also by-products obtained from running special departments of agricultural production. "

The purchased glaze, paints or varnishes do not constitute commercial goods for the taxpayer, because they will not be sold by him, but they are certainly basic materials, because they are used to carry out the construction services he provides.