How to include damaged and expired goods in the KPiR?

Entrepreneurs who conduct business related to trade have often encountered a situation in which commercial goods were damaged or expired. Not every business owner knows that such a loss should be properly documented and recorded in the tax revenue and expense ledger.

Damaged and expired goods - damage report

In the event of destruction and expiry of commercial goods, each entrepreneur should properly document this event. For this purpose, a damage report should be drawn up, in which a detailed description of the event is provided and a list of damaged and overdue goods is drawn up, specifying their value. The valuation of damaged and expired goods should be made on the basis of their purchase prices. In the case of commercial goods that have been damaged by the negligence of the taxpayer, they are not entered in the damage report. Taking into account the position of the tax authorities, in such a situation, the tax deductible costs and VAT deducted should be adjusted.

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How to include damaged and expired goods in the KPiR?

On the basis of the prepared loss protocols, the entrepreneur should write off damaged goods and goods overdue from the tax revenue and expense ledger from column 10 - purchase of commercial goods and materials. Losses must be booked negative. Then the same amount should be booked plus to the tax revenue and expense ledger in column 13 - other expenses.

The booking should be made on the date of drawing up the loss report, while the number of the accounting document in the KPiR is the number of the report.