31 July 2019

Online cash registers, from when and for whom

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 1 January 2020 – service stations that repair vehicles and mopeds and sell petrol, diesel, and autogas,
  • until 1 July 2020 – catering establishments (stationary all-year and seasonal establishments as well as businesses which offer accommodation inclusive of meals),
  • until 1 January 2021 – 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 31 August 2019;
  • cash registers which archive receipt data in digital form – purchase possible until 31 December 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 from all their staff members declarations confirming that they have been trained in the principles of keeping records and issuing fiscal receipts. ‘The deadline for signing such a declaration lapsed on 31 May 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 PLN 700.

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

The deadline for the taxpayers to implement the changes and to assign the letter codes lapses on 31 July 2019.

ARPI Accounting is a part of ARPI Group, a Norwegian holding which started to operate in Poland in 2001.