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Michał Gosek

Tax adviser (Poland)
Associate Partner
Phone: +48 61 624 49 39
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The Act of 15 March 2019 amending the Value Added Tax Act and the Measures Act (Journal of Laws item 675) has been in force since 1 May 2019 to allow recording sales and tax due on sales to individuals who do not run a business activity and to flat-rate farmers on cash registers that are connected to the Central Repository of Cash Registers, the so-called online cash registers.

An online cash register sends details of each recorded transaction directly to the central IT system called the Central Repository of Cash Registers, including details necessary to identify:

  • the amount of taxable base and VAT,
  • tax rates,
  • type of goods or services,
  • time and place of cash register installation,
  • exact time of recording sales on the cash register.

The online cash registers will phase out traditional cash registers. The act stipulates two deadlines after which cash registers with electronic or paper recording will no longer be available for purchase.

Deadlines

Cash registers which record transactions on paper can be purchased only until 31 August 2019, whereas cash registers which record transactions electronically can be purchased until 31 December 2022.

Cash registers bought until those deadlines, which cannot send data to the Central Repository of Cash Registers, may be used (in most cases) until they wear out or their fiscal memory is full.

Only some taxpayers who operate in industries which the Ministry of Finance believes to be more susceptible to fraud are obliged to replace their existing cash registers.

Who has to replace the cash registers?

The following groups of taxpayer are obliged to replace their traditional cash registers:

  1. service stations that repair vehicles and mopeds and sell petrol, diesel, and gas for combustion engines must use online cash registers from 1 January 2020;
  2. stationary catering establishments (including seasonal) and short-term accommodation providers (e.g. hotels, guesthouses), as well as sellers of coal, briquette and similar solid fuels made of coal, lignite, coke, semi-coke for heating must use online cash registers from 1 July 2020;
  3. providers of hairdressing, cosmetics, cosmetology and construction services, medical care by physicians and dentists, legal services, fitness facilities (only in respect of admission fees) must use online cash registers from 1 January 2021.

Online cash registers do not abolish the obligation to hand over a paper receipt to the buyer, but taxpayers-users of such cash registers no longer have to print fiscal reports.

Also, the use of an online cash register does not need to be reported to the head of the tax office in order to obtain an ID number because such a report will be issued upon official configuration of the device for tax purposes which happens when it is connected to the telecommunications network.

According to the new regulations, when you buy a cash register which sends data to the Central Repository of Cash Registers, you can deduct the cost of each cash register from tax. You can deduct 90% of the (net) purchase price but no more than PLN 700. If that amount exceeds the output tax in the accounting period, you can apply for refund of the difference or deduct the difference in future accounting periods.

The above tax relief is available on condition that you purchase a cash register no later than 6 months after you start recording transactions.

As regards taxpayers who carry out exclusively VAT-exempt transactions, the tax authorities will refund the amount of relief to the taxpayer’s account at his/her request.

We need to emphasise that the tax relief on purchase of an online cash register is not available to taxpayers who replace their electronic or paper cash registers with online devices, except for taxpayers who are obliged to replace them by law due to the industry they operate in.

Buyer’s tax ID number mandatory on cash register receipts

The Polish President signed the act amending the Value Added Tax Act and certain other acts on 29 July 2019. This new piece of legislation changes the rules for obtaining VAT invoices where the seller first confirms the sale with a cash register receipt.

According to the amended act, if you record a sale transaction on a cash register and issue a cash register receipt for it, you can then issue an invoice to the person liable to value added tax only if the cash register receipt for that transaction shows the number under which the buyer of the goods or services is identified for VAT purposes.

This means that a VAT-registered buyer must decide whether he buys the goods or services as an enterprise or as a consumer already at the time of purchase.

If your cash register has no technical option to add the buyer’s VAT number to the receipt, the only way is to issue invoices without recording the sale on the cash register.

Sanctions

The amended act stipulates severe penalties for taxpayers who breach the ban on issuing invoices where the cash register receipt does not include the buyer’s VAT number. Also the buyer who deducts input tax on such an invoice may be punished.

If a taxpayer is found to have issued an invoice in contravention of the new regulations, tax authorities will assess for that taxpayer an additional tax liability amounting to 100% of the tax amount shown on the invoice.

The same penalty will be imposed on a taxpayer (buyer) who enters in his VAT records an invoice issued to him for sale first confirmed with a cash receipt which does show his VAT number.

No additional tax liability will be imposed on natural persons who may be held liable as for a fiscal offence or a fiscal crime on count of the same violation.

The act stipulates that the new rules will come into force on 1 January 2020.

Rödl & Partner’s experts are at your service if you are interested in more details about the new rules for recording sales using online cash registers and for invoicing preceded by cash register receipts.

Tomasz Nowak

01.10.2019