Goods received free of charge - settlement in the KPiR

When conducting commercial activities, it often happens that the taxpayer has goods acquired free of charge. How then to correctly account for their sale so that everything is correct in terms of taxation? We explain how the goods received free of charge should be settled in the KPiR!

Goods received free of charge and income

The provisions of the Personal Income Tax Act clearly indicate that business income also includes free benefits.

Art. 14 sec. 2 point 8 of the PIT Act: Income from business activity also includes the value of received benefits in kind and other gratuitous benefits, calculated in accordance with Art. 11 sec. 2-2b, subject to article 22. 21 sec. 1 point 125.

The entrepreneur is obliged to evaluate them in accordance with art. 11 sec. 2 u.p.d.o.f., i.e. based on market prices. At the same time, it should be remembered that the market price in this case must be determined on the basis of trade in items of the same type and species, taking into account in particular their condition and degree of wear, as well as the time and place of obtaining them.

The taxpayer is obliged to recognize each income related to the conducted business activity in the book of revenues and expenses. The appropriate column in this case will be column 8 - other income. There is no doubt that this event has been properly documented. Due to the fact that the provisions of the regulation on maintaining the KPiR do not explicitly specify which document will be relevant here, the answer should be sought in par. 12 sec. 3 point 2 of the Regulation. According to its content, in this situation it is appropriate to prepare a document marked with a number, which includes at least:

• 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 proof and the date or period of the economic operation to which the proof relates, provided that if the date of the economic transaction corresponds to the date of issue of the proof, it is sufficient to indicate a single 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.

Goods received free of charge - sale

Goods received free of charge may be sold at some point. In this situation, the revenue related to the sale should be properly documented and included in the accounting records. If it is a sale to natural persons who do not conduct business activity or flat-rate farmers, and the entrepreneur is obliged to register it at the cash register, then the appropriate document will be a fiscal receipt. However, in the case of sale of goods to companies, this transaction must be documented with an invoice.

This is a general rule, because it may turn out that the entrepreneur is not obliged to have a cash register, then sales to private persons will have to be included in the relevant records.

Revenue from the sale of goods should be reported in column 7 of the book of revenues and expenses - sale of goods and services. In the case of active VAT payers, the net amount of sales will be appropriate, while in the case of exempt entities - the gross amount.

Double taxation of goods received free of charge?

It might seem that a taxpayer who received goods for free will double tax this transaction - as income from gratuitous benefits and as income from sales. Nothing could be more wrong. In such a situation, the taxpayer has the right to recognize in costs the amount of previously entered income from free benefits. This position results from Art. 22 sec. 1d u.p.d.o.f. The column appropriate for recording this type of event will be col. 13 - other expenses.

Art. 22 sec. 1d of the PIT Act: In the case of disposal for free or partially for consideration of acquired things or rights, as well as other benefits acquired free of charge or partially for consideration, in connection with which, pursuant to art. 11 sec. 2-2b, the revenue was determined at the cost of obtaining revenue from their disposal for consideration, taking into account the updating in accordance with separate regulations, is: 1) the value of the revenue referred to in art. 11 sec. 2 and 2a or 2) the value of the income referred to in article 1. 11 sec. 2B, increased by expenses for the acquisition of partially paid things or rights or other benefits - reduced by the sum of the depreciation referred to in article 1. 22 h of paragraph 1. 1 point 1.

 

Example 1.

The ANGEL company received free goods worth PLN 2,500. This amount was also included in col. 8 of the KPiR. The product was sold for PLN 3,500. What amount can the taxpayer include in the costs.

The entrepreneur may include PLN 2,500 in the costs - the value of the goods received free of charge.

Example 2.

The GWIAZDOR company received free goods worth PLN 2,500. This amount was also included in col. 8 of the KPiR. The product was sold for PLN 1,500. What amount can the taxpayer include in the costs.

The entrepreneur may include in the costs the amount of PLN 2,500 - the value of the goods received free of charge - regardless of the fact that it was sold for a lower amount.