Invoice from a foreign contractor at PKPiR


Running a business, a Polish entrepreneur often purchases from foreign contractors. How to correctly enter such an invoice (invoice, rachnung) in the Tax Book of Revenue?

How to convert a foreign currency into zlotys

Well, as it results from art. 11a paragraph. 1 of the Personal Income Tax Act, revenues in foreign currencies are converted into zlotys at the average exchange rate of foreign currencies announced by the National Bank of Poland on the last business day preceding the day of obtaining the income.

The above is a consequence of § 12 sec. 1 of the Regulation on the KPiR, which states that entries therein should be made in Polish and in the Polish currency in a careful, legible and permanent manner, based on correct and reliable evidence.

Entries in the book regarding expenses (costs) are made on the basis of the evidence referred to in § 12-16 of the regulation.

Basic document in PKPiR

Therefore, the basic evidence of an entry in the tax revenue and expense ledger is an invoice received from a foreign supplier. It is she who documents the acquisition of commercial goods. In a situation where the goods are taken out of the customs warehouse later, the cost of purchasing the goods should be increased by customs duties and customs duties.


It is worth pointing out here that pursuant to § 28 para. 3 of the regulation on the keeping of the tax book of revenues for the preparation of a physical inventory, require also to include goods that are the property of the taxpayer, located on the date of the inventory outside the taxpayer's establishment, as well as foreign goods in the taxpayer's establishment.


Summarizing, the expenses for the purchase of commercial goods are charged to the costs at the time they are incurred, and not when they are transferred for sale. Any difference between the value of the final and initial inventories increases or decreases the taxable income, respectively. Therefore, goods that are outside the taxpayer's warehouse (e.g. in a customs warehouse) must be included in the physical inventory, then appropriately the expenses for their purchase should increase the tax deductible costs.