Cash register – who is required to install one?
Taxpayers who sell to natural persons not engaged in business activity are required to record their sales on cash registers. However, the Minister of Development and Finance, in the regulation of 20 December 2017 on the exemption from the obligation to keep records using cash registers, provided for a number of exceptions to this obligation.
Exemption from the obligation to record sales using cash registers
Objective exemptions release from the recording obligation only strictly defined types of activity. If a taxpayer earns revenue from sales to natural persons not engaged in business only from activity exempt from registration, then there is no obligation to install a cash register.
However, when it comes to both exempt activities (listed in Part I of the annex to the Regulation) and non-exempt ones, note that the exemption from the need to record sales using cash devices applies provided that the share of turnover from exempt sales in total turnover in the previous year exceeded 80%.
Exemption based on turnover not exceeding 20,000 zł
The regulation of the Minister of Development and Finance also provides for an exemption based on the amount of turnover. If, in a given tax year, turnover from sales to natural persons not engaged in business and to lump-sum farmers does not exceed 20,000 zł, the taxpayer is not required to install a cash register. This obligation arises after two months, counted from the first day of the month following the month in which the taxpayer exceeded the 20,000 zł limit.
Taxpayers who benefit from the VAT exemption because they are small entrepreneurs (referred to in Article 113 of the VAT Act) should remember that the VAT exemption does not mean they are also exempt from recording sales using cash registers! It may happen that they exceed the permitted turnover limit of 20,000 zł and will be required to use cash registers.
Which activities must be recorded on a cash register?
§ 4 of the aforementioned regulation on the exemption from the obligation to keep records using cash registers specifies the types of activities for which the presence of a cash register is absolutely required. They include:
1 – supply of:
- liquefied gas,
- engine parts (PKWiU 28.11.4),
- internal combustion engines used in vehicles (PKWiU 29.10.1),
- car bodies (PKWiU 29.20.1),
- trailers and semi-trailers; containers (PKWiU 29.20.2),
- parts for trailers, semi-trailers, and other vehicles without mechanical propulsion (PKWiU 29.20.30.0),
- parts and accessories for passenger cars (excluding motorcycles), not included in other items (PKWiU 29.32.30.0),
- reciprocating internal-combustion piston engines such as those for motorcycles (PKWiU 30.91.3),
- radio, television and telecommunications equipment, except for electronic valves and other electronic components, and parts of equipment and devices for audio and video control, and antennas (PKWiU ex 26 and ex 27.90),
- photographic equipment, except for parts and accessories for photographic equipment and accessories (PKWiU ex 26.70.1),
- products made of precious metals or containing such metals, whose supply cannot benefit from the tax exemption specified in Art. 113 sec. 1 and 9 of the Act of 11 March 2004 on the tax on goods and services,
- recorded and unrecorded digital and analogue data carriers,
- products intended for use, offered for sale or used as motor fuel or as an additive to motor fuels, regardless of the PKWiU symbol,
- tobacco products (PKWiU 12.00), alcoholic beverages with an alcohol content above 1.2%, and alcoholic beverages that are a mixture of beer and non-alcoholic drinks with an alcohol content above 0.5%, regardless of the PKWiU symbol, except for goods supplied on board an aircraft,
- perfumery and toilet waters (PKWiU 20.42.11.0), except for goods supplied on board an aircraft.
2 – provision of services:
- road passenger transport, except for transport specified in items 15 and 16 of the annex to the Regulation
- transport of people and their hand luggage by taxi
- repair of passenger cars and mopeds (including repair, assembly, restoration and regeneration of tyres)
- replacement of tyres or wheels of cars and mopeds
- vehicle testing and technical inspections
medical care provided by doctors and dentists, except for services provided by blind persons with a significant or moderate degree of disability who run their own business or employ only one blind employee with a significant or moderate degree of disability,
legal services, except for services specified in paragraph 28 of the annex to the regulation,
tax advisory,
related to catering (PKWiU 56), only: provided by fixed-location catering establishments, including seasonal ones, and meal-preparation services for external recipients (catering),
hairdressing, beauty and cosmetology,
culture and entertainment – only in the context of admission to circus performances,
related to entertainment and recreation – only in the context of admission to amusement parks, funfairs, discos, and dance halls,
currency exchange, except for services provided by banks and cooperative savings and credit unions.