What is and what is keeping a tax book of revenues and expenses?
The revenue and expense ledger is a simplified accounting record of economic operations. It records in it:
- sales revenues as well as other revenues,
- purchase of goods and materials as well as side costs related to these purchases,
- expenses, including salaries in cash and in kind, as well as all other business related expenses
- research and development costs.
Revenue and expense ledgers – who is obliged to run it?
KPiR must lead:
- natural persons who obtain income from non-agricultural business activity, taxed on general principles or with a flat tax,
- general partnerships of natural persons, civil partnerships of natural persons, partnerships whose net revenues from the sale of goods, products and financial operations for the previous financial year did not exceed the equivalent of EUR 2,000,000 in the Polish currency. Above this limit, entities must keep full accounting (full accounting records).
When to set up an revenue and expense ledgers?
The book of revenues and expenditures should be established on January 1 of the tax year or on the day of commencing business activity. The sales records must be established within the same deadlines when the taxpayer is required to keep it.
Can you be exempt from keeping a revenue and expense ledgers?
The taxpayer submit a written application to the tax office (competent for his place of residence) for exemption from keeping the KPiR or from individual activities related to bookkeeping due to:
- health condition and age,
- the size and type of business.
The request must be submitted no later than 30 days before the start of the month from which the exemption would apply. If the activity has already commenced or the obligation to conduct the KPiR has arisen during the tax year, the application must be submitted within 14 days from the commencement of the activity or the obligation to conduct the KPiR.
Is it possible to keep a tax ledger of revenues and expenses in electronic form?
The taxpayer may keep the KPiR in the ICT system. However, it must meet additional conditions:
- write down detailed instructions for operating the computer program used to keep the book in writing;
- use a computer program that will enable immediate insight into the content of the entries made and printing of all data in chronological order, in accordance with the book model;
- store the recorded data on IT data carriers in a manner that protects them against destruction or distortion, violation of the established rules for their processing or their unauthorized modification.