Polish companies can invoice employees for goods, like domophones, without using a fiscal cash register under specific conditions outlined in tax regulations.
Problem Statement
A limited liability company, having previously liquidated its cash register due to a change in business profile, questioned the legality of issuing an invoice for a domophone sold to an employee.
Advice: Invoicing Employees is Permissible
Issuing an invoice to an employee without a cash register is permissible if the sale falls under exemptions from cash register requirements, specifically for goods sold to employees. The invoice should include standard VAT data and clearly state the buyer is an employee for audit purposes.
Legal Basis for the Exemption
Position 39 in the annex to the regulation excludes sales to employees from the mandatory cash register requirement. Companies that previously eliminated cash registers due to a lack of consumer sales do not automatically need to reinstate them for individual employee transactions.
Cash Register Requirements and Employee Sales
Generally, sales to individuals not conducting business activity require cash register recording in the Polish tax system. However, exceptions exist, including sales to employees.
The Employee Sales Exception Explained
According to the regulation on exemptions from cash register requirements, sales to employees are exempt from fiscalization, as detailed in position 39 of the annex. This applies to the sale of a domophone to an employee of the selling company.
Correctly Issuing a VAT Invoice to an Individual
Invoices to individuals not conducting business activity can be issued without a NIP (tax identification number). The invoice should include the buyer’s name, surname, and address. No special invoice format is required; it should resemble a standard VAT invoice for business clients, with the addition of a note indicating the buyer is an employee.
Employee Sales, JPK, and VAT Reporting
Employee sales must be included in VAT records and reported in the Unified Control File (JPK). No special markings or procedures are required; it’s standard VAT-taxed sales.
Cash Register Liquidation and One-Off Sales
Companies shouldn’t fear needing to repurchase a cash register for a single sale to an individual. The key factor is whether the transaction requires cash register recording. If the sale falls under exemptions, like employee transactions, reinstating the cash register isn’t necessary.
Employee Sales as a Tax Exception
Tax regulations provide several exceptions to cash register requirements, with employee sales being a practical and frequently used one. It simplifies internal company settlements, especially when employees purchase goods or services from their employer. However, the seller must prove the buyer was an employee at the time of the transaction.
Key Takeaways for Businesses
Issuing an invoice to an employee without a cash register, as described, is compliant with regulations. Proper documentation of the sale and accurate VAT reporting are essential, along with maintaining proof of the employee’s status for potential tax audits.
