Commercial goods and basic materials


Taxpayers who keep a tax book of revenues and expenditures record in column 10 - purchase of commercial goods and basic materials. However, it should be remembered that although they are listed in the same place, their definition is not the same. Why? How are trading goods different from basic materials? We explain below.

Trade goods in the KPiR - definition

§ 3 point 1 lit. and the Regulation of the Minister of Finance on the conduct of the KPIR defines what should be understood as commercial goods. According to its content, trade goods are goods intended for sale unprocessed. Trade goods are also by-products, obtained while running special departments of agricultural production.

The best example of this can be fruit and vegetables purchased by a local greengrocer, which will be resold unchanged.

Basic materials in KPiR - definition

On the other hand, the definition of the basic material is included in § 2 point 1 lit. b of the regulation.It specifies that the basic materials (raw materials) are materials that become the main substance of the finished product in the production process or in the provision of services.

Basic materials also include materials constituting a component (assembly) part of the product or closely connected with the product (e.g. packaging - cans, bottles) and reusable shipping packages (e.g. transporters, pallets), if these packages are not fixed assets.

An example may be a sewing room in which the purchased knitted fabrics will be the basic material from which, for example, women's clothing will be produced.