Online cash register for a tax advisor - is it necessary?

The profession of a tax advisor is becoming more and more popular. Many young people have their future connected with it. Although it is extremely difficult, it also turns out to be interesting, and the thematic scope is extremely wide. When running your own law office, one should remember about numerous fiscal obligations imposed on entrepreneurs practicing this profession by the legislator. Is the online checkout for a tax advisor mandatory?

Tax advisor - a profession of public trust

A tax advisor is a profession of public trust established by the Act of 5 July 1996 on tax consultancy. Thus, the counselor is a special profession. Professionals of public trust do not act solely for profit. Their role is also to meet the most important needs and protect the most important values. In the case of tax advisors, it is primarily taxpayers' property protection.

Therefore, a person working as a tax advisor is not an ordinary entrepreneur, because apart from the legal acts applicable to persons conducting business activity, he must also comply with the provisions of the Tax Advisory Act.

It is compulsorily owned by the professional self-government by virtue of the law. The local government ensures that the tax advisor performs his activities in accordance with the common and corporate law.

In addition, the provisions regulating the functioning of public trust professions define numerous obligations, e.g. constant improvement of qualifications, third party liability insurance. Persons performing a profession of public trust also have special rights, e.g. the right to authenticate documents or material immunity.

Tax advisor, VAT payer

The legislator provides for an exemption from VAT for a certain group of taxpayers. Regulations in this regard are included in Art. 113 of the VAT Act.

Sales by taxpayers whose sales value did not exceed the total of PLN 200,000 in the previous tax year are exempt from tax. The amount of tax is not included in the sales value.

The sales value referred to above does not include:

• intra-Community delivery of goods and mail order sales from the territory of the country and mail order sales within the territory of the country;

• for the supply of goods for consideration and for the provision of services that are tax-exempt pursuant to art. 43 sec. 1 or regulations issued on the basis of art. 82 sec. 3, with the exception of:

• real estate transactions,

• services referred to in art. 43 sec. 1 points 7, 12 and 38-41,

• insurance services

- if these activities are not ancillary transactions.

In addition, we do not include the delivery of goods for consideration, which, under the provisions on income tax, are classified by the taxpayer as fixed assets and intangible assets subject to depreciation.

However, in the case of performing certain activities, the taxpayer must obligatorily be a taxpayer. It should be pointed out that, apart from those specified in the Act (agricultural consultancy), consultancy services cannot benefit from the exemption referred to above.

Example 1.

Mr. Jan took the oath and was entered on the list of tax advisors. In March, he decided to set up his own business dealing with tax consultancy. Does he have to register as an active VAT taxpayer?

Yes, the taxpayer should submit the VAT-R and register as an active VAT payer. In this case, he is not entitled to an exemption from VAT due to the volume of sales.

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Online cash register for a tax advisor

The activities that are subject to the obligation to register included in the Regulation of the Minister of Finance on exemptions from the obligation to keep records with the use of cash registers include, inter alia, tax advisory activities.

As a result, the provision of tax advisory services to natural persons who do not conduct business activity and flat-rate farmers must always be recorded by means of cash registers.

A tax advisor who provides services to natural persons who do not conduct business activity and flat-rate farmers, should therefore have a cash register from the very beginning.

Tax advisors, due to the need to replace cash registers with online cash registers, are wondering whether they also have such an obligation from July 2021.

Example 2.

The taxpayer runs a tax advisory office. He also provides services for natural persons (most often he represents them before tax authorities and courts).

In such a case, does the tax advisor provide legal services and is obliged to replace the cash register with an online one from 1 July?

Let us remind you that from July 1, 2021, the need to replace the cash register with an online cash register has been extended to taxpayers providing services:

• hairdressing,

• cosmetic and cosmetological,

• construction,

• in the field of medical care provided by doctors and dentists, legal

• and related to the activities of facilities to improve physical condition - only in the field of admission.

The analysis of the above regulations clearly shows that tax advisers have not been included in any of the above groups of taxpayers. Thus, they do not have to exchange cash registers for online cash registers.

To sum up, a tax advisor must be a VAT taxpayer from the beginning of business activity. In addition, advisers who provide services to non-business natural persons and individual farmers must have a cash register installed. However, tax advisors do not have to replace the cash register with an online cash register in July, because they do not provide legal services.