Resumption of business activity and exemption from the cash register

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Entrepreneurs selling to natural persons should, as a rule, use a cash register. Sometimes, however, there are situations in which they decide to liquidate their business, only to resume it after some time. Therefore, the question arises whether the resumption of economic activity will oblige the use of a cash register, if the entrepreneur was obliged to do so in the previous activity? Check, you will find the answer in our article!

Cash register - when is it necessary?

Issues related to the use of cash registers are regulated by Art. 111 of the VAT Act and the Regulation of the Minister of Finance on cash registers. Pursuant to Art. 111 sec. 1 of the VAT Act: 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.

A number of exemptions from this obligation were included in the above-mentioned regulation of the Minister of Finance of December 16, 2016 on exemptions from the obligation to keep records using cash registers. One of the exemptions is the exemption for not exceeding PLN 20,000 of the value of sales to natural persons who do not conduct business. On the other hand, for entrepreneurs who start selling to private persons during the year, the limit is calculated proportionally to the period of running a business.

Resumption of business activity and the cash register

Entrepreneurs who were required to record sales on a cash register and decided to resume business after the liquidation of the enterprise, are still required to use a cash register to record sales to natural persons who do not conduct business activity. Such an entrepreneur cannot benefit from the exemption from the use of a cash register, if he was obliged to do so in the liquidated activity. This principle applies to entrepreneurs who conduct the newly established business under the same organizational form, e.g. sole proprietorship. If the form of business has been changed, this rule does not apply because the new company is a new entity and there has been no resumption of business activity here, but the establishment of a new one.

Important!

An entrepreneur who, before liquidation, registered a sale to natural persons at the cash register, deciding to resume business activity, is also obliged to use a cash register, starting from the first transaction for natural persons, as long as the established activity is in the same form as the previous one.

Resumption of business activity and the cash register in the judgment of the Supreme Administrative Court

The confirmation of the aforementioned position can be found in the judgment of the Supreme Administrative Court of November 3, 2010, reference number I FSK 1277/10, where we read:

(...) the authorities rightly found that there were no grounds for the taxpayer to use the exemption from the obligation to keep records by means of a cash register when business activity was resumed, since she had lost this right earlier.