Online cash registers available from May, 2019

An amendment to the Act on VAT that introduces the possibility of using online cash registers entered into force on 1 May this year. Representatives of sensitive industries – meaning those which are particularly vulnerable to tax irregularities – will have to obtain new cash registers starting on January 1st, 2021, and in some cases – January 1st, 2020.

The data from the online cash registers will be collected by the Central Repository of Cash Registers (CRK) maintained by the National Revenue Administration. According to the new regulations, data transmission to the CRK will be continuous and automatic. Consequently, transactions made by the taxpayer will be reported in real-time. Moreover, the new devices will receive announcements and instructions from the CRK e.g. concerning the cash register’s accounting (initiating the work of the fiscal memory).
Online cash registers will be mandatory for taxpayers from the so-called sensitive industries, which run the greatest risk of tax evasions. The deadlines for obtaining the new cash registers are specified in the act:

• until January 1st, 2020 – service stations that repair vehicles and mopeds and sell petrol, diesel, and autogas,
• until January 1st, 2021 – catering establishments (stationary all-year and seasonal establishments as well as businesses which offer accommodation inclusive of meals), hairdressing, beauty treatment and construction services, medial care (physicians, dentists) and leisure facilities (concerning entrance fees).

When it comes to the remaining industries, the availability of the new online cash registers does not restrict the possibility to use traditional registers – until they are worn out or break down, or until the fiscal memory is full. The old cash registers will gradually disappear from the market:

• cash registers which archive receipt data in paper form – purchase possible until August 31st, 2019;
• cash registers which archive receipt data in digital form – purchase possible until December 31st, 2022.

Businesses can count on price concessions when buying an online register, which is supposed to encourage faster conversion to the new system. Under the regulation, they can count on funding amounting to as much as 90% of the net value of the purchase. However, the amount cannot exceed PLN 700. Once the new legislation comes into force, only purchases of the new generation registers will be subject to funding.

What Should You Remember?

All companies that use cash registers should collect declarations confirming that they have been trained their staff in the principles of keeping records and issuing receipts. ‘The deadline for signing such a declaration lapsed on May 31st this year, that is only one month after the new provisions had become effective,’ says Barbara Bagnowska, tax adviser at ARPI Tax Consulting.

Also, the new law obliges the taxpayer to carry out regular inspections of the cash registers in use – at least once every two years. If the taxpayer fails to meet this obligation, the head of the tax office may impose on them a financial penalty amounting to 700 PLN.

Furthermore, the amendment unifies the codes for VAT rates in the CRK system. All products and services provided by the taxpayer will have to be marked with relevant letters standing for the permanently assigned rate or exemption.

• A – standard VAT rate of 22% or 23%
• B – a reduced rate of 7% or 8%
• C – a reduced rate of 5%
• D – a reduced rate of 0%
• E – tax exemption
• F and G – additional rates or technical zero rate