Backup cash register - is it necessary?
As a rule, each entrepreneur selling to natural persons who do not conduct business activity and flat-rate farmers should register it at the cash register. This requirement results from Art. 111 sec. 1 of the VAT Act. The cash register, like any other equipment, can fail. What should you do then? Stop selling until it is fixed! This situation can be associated with huge losses for the company. How to solve such a problem?
Backup cash register - is it mandatory?
As mentioned earlier, the failure of the basic cash register forces the entrepreneur to end the sale until it is restarted. For activities where the cash register is absolutely mandatory (e.g. hairdresser, doctor, beautician) and their target buyers are private individuals, each day of downtime generates heavy losses. Therefore, it is worth considering purchasing a backup cash register.
It is not mandatory to have a backup cash register. The decision in this matter belongs to the entrepreneur himself.
How do I post the purchase of a backup cash register?
The method of booking the purchase of the backup cash register depends on its initial value.
Backup cash register - initial value up to PLN 3,500
If the value does not exceed PLN 3,500 (net - active VAT payer, gross - VAT-exempt taxpayer), the purchase of a backup cash register can be settled in two ways:
Include the purchase directly in tax deductible costs - the entrepreneur keeping the tax book of revenues and expenses shows the expenditure in column 13 - other expenses (net - active VAT taxpayer, gross - taxpayer exempt from VAT) and in the case of active VAT taxpayers - the deductible tax should be shown in VAT purchase register at the appropriate rate.
Treat the purchase as a low-value fixed asset (an asset owned or jointly owned by the taxpayer, complete and fit for use, with a planned period of use in business for more than 1 year) - net value (active VAT payer) or gross value from the invoice (entity exempt from VAT ) is the initial value of the fixed asset, which is subject to:
One-time depreciation - due to the low initial value (below PLN 3,500), the entrepreneur may include a one-off depreciation write-off in the costs in the month of its acceptance for use;
Straight-line depreciation - depreciation write-offs are calculated based on the rate resulting from the rate list. Depreciation write-offs are included in costs from the month following the month of taking the fixed asset into use.
An active VAT payer shows the deductible tax in the VAT purchase register.
Reserve cash register - initial value over PLN 3,500
In practice, cash registers with an initial value exceeding PLN 3,500 are bought quite rarely, nevertheless, it is worth knowing how to properly settle the purchase. Reserve cash register, the initial value of which exceeds PLN 3,500 (net - active VAT payer, gross - exempt VAT payer) and:
is owned or jointly owned by the taxpayer,
it is complete and serviceable,
will be used in business for a period longer than 1 year
- should be classified as a fixed asset and depreciated over time.
The basic method of depreciation of the backup cash register is the straight-line method with the use of the rate resulting from the list. The rate depends on the specific category of the fixed asset, i.e. KŚT.
For backup fiscal cash registers you can choose one of two KŚT:
669 - Other non-industrial equipment - depreciation rate 20%
491 - Computer teams - depreciation rate 30%
- it all depends on the technical conditions of the purchased cash register.
Entrepreneurs who are active VAT taxpayers who use the spare cash register for the purposes of taxable activity have the right to deduct VAT by showing it in the register of purchase.
Discount for the purchase of a backup cash register
Pursuant to Art. 111 (4) of the VAT Act:
"Taxpayers who start recording the turnover and the amounts of tax due on the applicable dates, may deduct from this tax the amount spent on the purchase of each of the cash registers reported on the date of commencement (obligation arising) of recording in the amount of 90% of its purchase price (excluding tax), no but more than PLN 700 ”.
The discount for the purchase of cash registers is valid only at the beginning of the registration of turnover in this way. Therefore, if the entrepreneur plans to buy a backup cash register (as the second in the company), then to take advantage of the discount, he must buy both at once!
The possibility of using the discount also applies to the purchase of a backup cash register. At the same time, active VAT payers settle the relief in the VAT-7 (monthly settlement) or VAT-7K (quarterly settlement) settlement declarations they submit. More on this in the article: Cash register purchase reimbursement.
On the other hand, entities exempt from VAT benefit from the relief for the purchase of a cash register upon request. More on this subject in the publication: Entity exempt from VAT and relief for the purchase of a cash register.
A backup cash register, just like a regular cash register, must be reported and confiscated.
Reimbursement of the allowance for the purchase of a backup cash register
Art. 111 sec. 6 of the VAT Act indicates when the tax relief for the purchase of a cash register should be refunded:
"Taxpayers are obliged to return the deducted or reimbursed amounts spent on the purchase of cash registers, if they cease to use them within 3 years from the date of commencement of recording or fail to report the cash register to the obligatory technical inspection by the relevant service within the applicable deadline, as well as in the event of a breach of the conditions related to the deduction of these amounts, specified in the regulations issued on the basis of paragraph 7 points 1 and 2 ".
In turn, § 6 of the ordinance on the deduction and return of amounts spent on the purchase of cash registers determines when the taxpayer is required to return the tax relief for the purchase of a cash register (including backup cash registers) in cases where within three years from the date of recording:
cessation of activity;
liquidation will be opened;
will be declared bankrupt;
the company or plant (branch) will be sold, and the legal successor will not make the sale referred to in Art. 111 sec. 1 of the act;
will make the deduction in violation of the conditions referred to in § 2 and 3 of the regulation.
The reimbursement of the deducted or returned amounts spent on the purchase of cash registers should be made to the account of the competent tax office within:
1) by the 25th day of the month following:
a) the month in which the circumstances justifying such a refund arose, if the taxpayer settles the tax for monthly periods,
b) the quarter in which the circumstances justifying such a refund arose, if the taxpayer accounts for the tax for quarterly periods;
2) by the end of the month following the month in which the circumstances justifying the refund in the case of the taxpayers referred to in article 1. 111 sec. 5 of the Act.