Buying a cash register in installments – can I apply for relief?

Purchasing a cash register is a significant burden on a company's budget. It's no wonder, then, that many entrepreneurs prefer to pay the entire amount in installments rather than paying it all at once. But does this mean they lose their right to the tax relief on the purchase of a cash register? We'll clarify any doubts.

Cash register and relief for equipment purchases – when can you use it?

Pursuant to the Regulation of the Minister of Finance of 29 April 2019, entrepreneurs have the opportunity to benefit from a tax relief for the purchase of a cash register. Its amount can reach up to PLN 90% net price, but not more than PLN 700. To obtain a discount, the taxpayer must meet certain conditions.

The relief applies only to the latest generation of devices, i.e. online cash registers. What distinguishes them from traditional solutions is that they communicate automatically, directly and continuously with the Central Cash Register Repository, sending it important information such as fiscal receipts, non-fiscal documents and daily reports. Therefore, if an entrepreneur wants to obtain relief, he must opt for the online model. Cash registers with paper or electronic copy recording are not covered by the subsidy.

In addition, a taxpayer may apply for relief if:

· has a statutory obligation to exchange traditional cash registers for online model,

is obliged to start recording turnover and tax amounts due using a cash register within a given period and fulfills the obligation by purchasing and using the online model,

· does not have to use a cash register, but voluntarily wants to and has not used other types of cash registers before.

With the discount for purchasing an online cash register they can't However, those entrepreneurs who voluntarily replace a device with a paper or electronic backup copy with an online version will benefit. Taxpayers expanding their business to include new retail or service outlets also cannot count on a refund unless they operate in an industry that is legally obligated to replace equipment with new ones.

Buying a cash register in installments and relief – can you apply for a refund?

Now that we know what conditions must be met to be eligible for the tax relief on the purchase of a cash register, it's time to get to the heart of the matter.Despite purchasing in installments, can an entrepreneur apply for reimbursement of part of the costs incurred? Absolutely. However, even in this case he must complete certain formalities.

To receive the relief, the taxpayer must have a sales invoice. This invoice must cover the total cost of the device, not just one of the installments. What does this mean in practice? That the entrepreneur can apply for a refund of the cost of purchasing an online cash register only after paying the last installment. Until a taxpayer pays the full fee to the device supplier, they cannot apply for the relief. This position was taken by the Ministry of Finance in a July 11, 2019, announcement published on its website.

What is worth mentioning, in order to apply for a refund for the purchase of a cash register, the entrepreneur must purchase equipment that is not only an online model, but also has valid homologation. This is a necessary condition.

Relief for the purchase of a cash register – formalities

Contrary to appearances, applying for a purchase tax relief cash register it's not difficult. It also does not require many formalities. If the entrepreneur is a VAT payer, they must complete the appropriate fields in the VAT-7 declaration (items 52 and 55-61). In this case, the refund will be spread over tax liabilities settled in subsequent periods.

If the taxpayer is not a VAT payer, then in order to receive the relief, must submit an application to the head of the appropriate Tax Office. The entrepreneur will receive the reimbursement of incurred costs to his account within the time limit set by the Office.

Purchasing a cash register in installments does not mean that the entrepreneur cannot benefit from the 90% relief, but he or she can only apply for a refund after paying the last installment. There are many cash register suppliers on the market that offer any number of installments and attractive interest rates. This makes it easier to purchase a device tailored to the needs of your business.