Books and magazines in tax deductible costs - settlement


People running a business very often wonder whether the expenditure incurred on the purchase of specialized books and journals related to the subject of their business may constitute a tax cost. Practicing some professions is associated not only with the constant monitoring of changes in tax law, but also with keeping up with scientific or technological novelties. The knowledge base available on the Internet may not be sufficient, and, importantly, may not be a reliable source of information. Check how to account for books and magazines in tax deductible costs.

Books and magazines in tax deductible expenses

In order to decide on the issue of including the purchase of books and magazines as costs of business activity, one should look at the catalog of exclusions included by the legislator in the PIT Act (Article 23 (1)). The above-mentioned expenses did not include the purchase of literature and professional press. At the same time, it should be remembered that in order for an expense to be included in the costs of business activity at all, it must meet the conditions set out in Art. 22 above the law. First of all, it should remain with the conducted activity in such a connection that its incurring may contribute to obtaining income or securing it or maintaining its source.

As a rule, in order for books and magazines to be accounted for in tax deductible costs, they cannot be used by entrepreneurs for private purposes. Importantly, it should also be remembered that it is the person running a business who is a taxpayer who is obliged to prove the relationship between the expense and the activity performed. The entrepreneur does not have to limit himself only to literature and specialist press closely related to the subject of the activities performed. Expenses incurred for the purchase of all kinds of literature, scientific aids and magazines, which contain information necessary for the proper performance of activities, e.g. on business or economic topics, may also be a tax-deductible cost.

Invoice for the purchase of books and magazines at KPiR

The taxpayer should remember that in order to be able to include expenses for the purchase of books and magazines as costs, it is necessary to have an appropriate accounting document that meets all the formal requirements currently provided for in the Regulation on keeping a tax book of revenues and expenses. As a rule, the basis for recognizing an expenditure in the KPiR is an invoice, bill or other accounting document specified in § 13 and 14 of the above-mentioned regulation.

Purchase of specialist books and periodicals has an indirect impact on the generated income, so it should be included in column 13. of the KPiR - “Other expenses”. In terms of VAT, if the purchase is for the performance of taxable activities as part of business activity, then the entrepreneur has the right to reduce the output tax by the resulting amount of input tax at the time of purchase.

In connection with the above, if the expenditure for the purchase of books and magazines is actually related to the purpose of the economic activity, then there is nothing to prevent it from being included in tax deductible costs.

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Accounting for the purchase of books and magazines in the system

To book the purchase of books and magazines in the system, go to the tab: EXPENDITURE »ACCOUNTING» ADD »VAT INVOICE» OTHER EXPENDITURE RELATED TO BUSINESS ACTIVITY.

After saving, the expense will go to column 13 of the KPiR "Other expenses" and the VAT purchase register.