Documenting the purchase at auction in the revenue and expense ledger
With the times, the popularity of modern solutions that effectively replace traditional activities is growing. A perfect example is the more and more common purchases via internet portals. Soon it will be possible to risk a statement that each of us, at least once in a lifetime, bought something over the Internet. It is no wonder that the interest in shopping without leaving home is also growing among entrepreneurs. Already today, many of them buy goods or materials over the Internet. As a modern entrepreneur, it is worth knowing on what basis the purchase at the auction in the KPiR is documented.
Documenting a purchase at an auction from another entrepreneur
The problem with documenting the transaction is practically non-existent if the seller is another company. In this case, just like in the case of traditional purchases, the buyer always receives a VAT invoice or a bill / invoice without VAT (if the seller is exempt from VAT) as proof of purchase. Both documents, if issued in accordance with the regulations, certainly constitute accounting evidence that allows for the qualification of expenses incurred on purchases on the Internet to tax deductible costs and to be transferred to the KPiR.
Purchases at an auction from a natural person not conducting business activity
It may be troublesome to qualify the expenses for purchases at an online auction when the seller is a natural person who does not run a business. In accordance with the ordinance of the Minister of Finance on keeping a tax book of revenues and expenses, the documents constituting the basis for entry in the KPiR in this situation may include:
evidence of payments made on the basis of payment books,
other payment receipts containing the following data:
reliable identification of the issuer or indication of the parties (name and addresses) participating in the business operation to which the proof relates,
the date of issue of the ID and the date or period of the economic transaction to which the proof relates (if the date of the economic transaction corresponds to the date of issue of the ID, it is sufficient to provide one date),
the object of the economic operation and its value as well as its quantification, if the object of the operation is measurable in natural units,
signatures of persons authorized to properly document business operations.
Fee receipts should be marked in a way that allows linking a given document with accounting entries made on its basis.
Documenting the purchase at auction - summary
Purchases at auctions from other entrepreneurs, documented with a correctly issued VAT invoice or bill, do not raise any doubts as to the method of recognizing these expenses in the KPiR. However, it should be remembered that when purchasing at an auction from a natural person not conducting business activity, the basis for entry in the KPiR may only be sales contracts and documents containing all the required data. Proofs of fees, which lack at least one of the required information - cannot be the basis for entry in the book. Therefore, printouts confirming the winning of the auction will not be the basis for accounting, even if the entrepreneur signs a bank statement confirming the actual payment.