Physical inventory and change or expansion of activities


Expanding or changing your business can be a good way to make more profits. When the entrepreneur decides to add new services to the offer or sell a new type of products, he should report this fact on the CEIDG-1 form. The codes selected in accordance with PKD must be included in part 6 - field 06.3. When it comes to the formalities related to the change of the type of activity, there are often some doubts - is a physical inventory necessary in this case? We invite you to read.

When is a physical inventory required?

The physical inventory (inventory, inventory) must be carried out in the cases specified in the law. Par. 27 sec.1 and 2 of the Regulation of the Minister of Finance of August 26, 2003 on keeping a tax book of revenues and expenditures, order to carry out a physical inventory:

  • when setting up a business (the list should include all commercial goods and materials held on the day of commencement of operations, and its value is recognized in the KPiR as the first entry),
  • at the end of the tax year (i.e. as at December 31 - the inventory includes mainly goods and materials owned at a given time, this entry closes the KPiR in a given year),
  • at the beginning of the tax year (this inventory is usually a copy of the inventory carried out at the end of the year, its value is entered as the first item in the KPiR in a given year),
  • when liquidating a business (in this case, two inventories are necessary - for VAT and income tax purposes),
  • in the event of a change of a partner (such an inventory is carried out if the company is run in the form of a company that settles based on the KPiR and aims to determine the actual tax liability of both the exiting partner and other partners),
  • during the year at the request of the office or as a result of own needs.

Physical inventory - notification

Certain situations oblige the owner of the company to notify the tax office about the intention to conduct a physical inventory. Paragraph 38 4 of the above-mentioned regulation establishes three exceptions - they concern the inventory at the end and beginning of the year and at the day of commencement of operations.

All other situations require notification of the head of the relevant US that a physical inventory will be prepared - the deadline for sending such information is 7 days before making such an inventory. However, it is worth knowing that the inventory itself should be submitted to the office in one situation, i.e. with the physical inventory for VAT purposes, which is performed when the company is liquidated. Of course, it also happens that the tax office, on its own initiative, calls on the taxpayer to hand over the inventory drawn up in other cases.

Physical inventory - necessary when changing activities?

So does a change in the type of activity or an extension of the offer mean that the physical inventory is necessary? No - but the taxpayer may decide to carry it out himself. If he decides to take such a step, he must take into account the need to inform the head of the tax office about the willingness to create a physical inventory. As already mentioned, it must do so no later than 7 days before the start of its preparation.