Sales made to retail customers – that is, individuals not conducting business activities – are subject to certain restrictions in Poland. One of the most important of these is the requirement to record sales on a cash register.
Find out about the nature of this obligation and what exceptions are provided in this regard.
What is a cash register and what are its types?
A cash register is a device on which goods and services within the assortment of a specific company can be recorded, and their sale can be registered. Confirmation of the transaction is provided by printing a fiscal receipt, which gives the buyer insight into what they paid for, the VAT rates of individual items, and from whom they made the purchase. Cash registers can be classified primarily based on the method of data recording. In this regard, the main classifications include:
- Fiscal cash registers online;
- Fiscal cash registers with electronic copy storage;
- Fiscal cash registers with paper copy storage;
- Virtual fiscal cash registers in the form of software.
It is worth emphasizing that fiscal cash registers should have homologation, which confirms the compliance of the device with technical requirements and regulations. Before starting sales records on the device, it is also necessary to remember about its fiscalization, and in some cases, also registration. This allows obtaining the relevant registration number and proper registration of transactions and issuance of receipts.
Cash register – who is obliged to have it?
The starting point for discussing the subject of registering business transactions on a cash register should be Article 111(1) of the Act of March 11, 2004, on Goods and Services Tax, according to which taxpayers who sell to individuals not conducting business activities or lump-sum farmers are obliged to keep records of sales using cash registers. Consequently, the rule can be considered as the situation where sales made by an entrepreneur to a retail customer are documented through a fiscal receipt.
However, it is worth discussing whether in every situation an entrepreneur is obliged to have a cash register. The Minister of Finance, by regulation, exempted selected groups of entities from the obligation to use such devices, as well as provided certain exceptions regarding the necessity of conducting this type of record-keeping. According to §3 of the Regulation of the Minister of Finance of November 30, 2023, regarding exemptions from the obligation to keep records of sales using cash registers, such exemption can be applied for when the entrepreneur meets one of two conditions.
Firstly, in the previous tax year, turnover from sales to individuals and lump-sum farmers could not exceed 20,000 Polish zlotys, and the entrepreneur was not obliged to keep records on a cash register.
However, it is important to remember that:
- Regarding entities that commenced operations in the previous year, the turnover value is determined proportionally to the period of performing activities;
- For taxpayers commencing sales after December 31, 2023, the exemption applies if the anticipated turnover value for individuals or lump-sum farmers – proportionally to the period of performing these activities – does not exceed the amount indicated above.
The specified proportions can be calculated by dividing the exemption limit by the number of days in the year, and then multiplying by the number of days remaining until the end of the year. This formula allows determining how much of the limit is still available for use.
It should be emphasized that the exemption ceases to apply after the expiration of two months following the month in which the limit was exceeded.
Another condition for exemption concerns a group of taxpayers who sell goods and services listed in Annex I to the regulation (e.g., services related to hazardous waste collection, postal and courier services, financial and insurance services, or notarial activities). However, this exemption applies only if in the previous fiscal year the share of such sales in total turnover amounted to at least 80%. If the taxpayer commenced the provision of such services in the current year, the exemption applies when the anticipated percentage share:
- for a period of 6 months of conducting business;
- the remaining period until the end of the year if it is less than 6 months.
– will be higher than 80%.
In the event that the described share was equal to or lower than 80% of turnover, the exemption ceases to apply after two months from the end of the half-year of the tax year in which it was used
It is also important to consider how to calculate the turnover that forms the basis of the exemption. It should be remembered that turnover includes all receipts or receivables from the supply of goods and services. In the case of entities subject to VAT, this turnover is calculated from the net value of the sales. It is also important to note that the entire sales, not just cash payments, are counted towards the limit.
Exemptions from the obligation to have a cash register
Entrepreneurs selling to retailers should be aware that the legislator has provided that certain types of transactions result in exemptions from the obligation to have a cash register. Sales made to individuals covered by this list of items should therefore be recorded on a cash register each time. It is worth noting that among them are many popular areas of business activity, including:
- deliveries:
- liquefied gas;
- parts for engines, engines for propulsion of vehicles and motorcycles, bodies of motor vehicles, trailers and semi-trailers, parts and accessories for motor vehicles;
- computers, electronic and optical products;
- certain products made of precious metals;
- tobacco products;
- perfumes and toilet waters;
- provision of services in the scope of:
- repair of motor vehicles and mopeds;
- tire or wheel replacement for motor vehicles and mopeds;
- hairdressing, cosmetic and cosmetology services;
- certain legal services and tax advisory services;
- certain passenger transport services and taxi services.
The above lists contain only exemplary enumerations, while the detailed list of goods and services excluding the possibility of applying the exemption is specified in §4 of the Regulation.
Online Store Cash Register
Another aspect worth discussing is the exemption from the obligation to have a cash register for online stores. In this case, the previously described proportional limit of 20,000 Polish zlotys turnover primarily applies. However, it is important to note that the regulations also provide additional conveniences in this regard. The entrepreneur does not have to record sales on a cash register if they meet three conditions in total:
- the delivery of products takes place in a mail-order sales system;
- payment for the goods is transferred to a bank account or a cooperative savings and credit union account, of which the entrepreneur is a member;
- based on the payment made to the account, the transaction and customer data can be unambiguously identified.
However, it should be noted that – similar to the turnover-based limit – this exemption does not cover the sale of goods and services specified in §4 of the Regulation. It will also not apply in the case where the buyer orders goods online but collects and pays for them in person at a physical point of sale.
When can you opt out of the cash register and can you transfer it to another company?
An entrepreneur who has been using a cash register in previous years may, in certain cases, opt out of its use. In general, in such a situation, the exclusions from the obligation to use cash registers, as described earlier, are significant. First of all, the right to resign will be available to an entrepreneur who:
- In the previous tax year, did not exceed the turnover limit of 20,000 Polish zlotys from the sale of goods and services to retail customers;
- did not perform activities that are subject to mandatory registration on a cash register;
- in previous years, did not lose the right to exemption.
Additionally, the right to opt-out of the cash register also applies to those taxpayers who voluntarily started maintaining this type of record
Another issue worth discussing is the use of an old cash register in a new company. It should be emphasized that the law does not exclude such a possibility, but it is subject to certain restrictions. Firstly, it should be remembered that the cash register is linked to a specific business, so a change of ownership entails the necessity of changing the tax identification number (NIP), which can only be done through the replacement of the fiscal module. Before the cash register changes ownership, any outstanding reports – daily and monthly – should be issued. Then, a service technician reads the memory of the cash register, issues appropriate protocols, and provides instructions on further steps, including what documents need to be submitted to the Tax Office and within what timeframe. Subsequently, the cash register at the new owner’s premises should undergo the fiscalization process again.
It is also worth noting that not only changing the company that will use the cash register requires specific actions but also changing the location where it will be used. In such a case, it is necessary to inform the Head of the relevant Tax Office about this fact and make certain changes in the cash register book as well as the data stored in the memory.
Tax relief for the purchase of a cash register – when is it granted and who can apply for it
Another issue that raises many questions among entrepreneurs is the right to obtain a tax relief for a cash register. According to Article 111(4) of the Value Added Tax Act, in cases where:
- the entrepreneur incurred an obligation to record sales on an online cash register and started such recording within the appropriate deadline;
- there was no obligation to record sales on a cash register, but the entrepreneur commenced such recording and has not previously used cash registers;
– he is entitled to deduct from the tax due an amount equal to 90% of the purchase price of the cash register, but not more than 700 PLN. The deductible purchase price does not include tax.
It should also be emphasized that if the value of the deduction entitlement for a given settlement period exceeds the value of the tax due, the taxpayer has the right to request a refund of this excess to their bank account or to deduct the difference in subsequent settlement periods. However, an additional condition in this regard is that no more than 6 months have elapsed between the purchase and the commencement of the record-keeping.
It is also worth noting that the right to deduction is contingent on two conditions. Firstly, the entrepreneur should possess the purchase invoice and evidence of payment for the entire amount due. Secondly, the records must be commenced no later than the applicable deadline, using cash registers acquired during the period when these devices fulfilled the functions specified in Article 111(6a) of the Value Added Tax Act.
Invoices instead of receipts – when can an invoice be issued to a retail customer?
The buyer of goods or services – even if not conducting business activity – may demand an invoice from us. The seller is obliged to issue such a document if the request is received within three months from the end of the month in which the goods were delivered or the service was provided. In the event that this request is received after a period of more than three months from the date of issuing the receipt, the seller may refuse to issue such a document.
The specific deadline for issuing such an invoice is defined in the regulations in two ways:
- If the request is made in the month in which the receipt was issued (the delivery or service was provided), the invoice should be issued no later than the 15th day of the month following the month of the sale.
- If the request is made after the end of the month in which the sale took place, the seller is required to issue the invoice within 15 days from the day of such request.
It should also be noted that when issuing an invoice, you should ask for the return of the receipt.
In summary, before starting a business where sales to individuals are intended, it’s important to understand our obligations regarding recording transactions on the fiscal cash register. Oversights in this area could be grounds for imposing fines. It’s always important to remember that the general rule requires fulfilling the obligation to register on the cash register for each retail sale, and any limits and exemptions should be treated as exceptions – especially since there is also a comprehensive list of exclusions in this area.