Keeping an equipment register (ewidencja wyposażenia) can be a helpful part of a company's accounting system, especially for business owners who keep a KPiR (tax revenue and expense ledger). Since 1 January 2020, the regulations no longer require you to keep one – today it is an auxiliary register kept voluntarily. Classifying assets correctly, however, has a direct impact on how they are settled for tax purposes and when the expenses become business costs.
The equipment register covers a specific category of assets, defined by value and time criteria from the income tax act. Knowing these criteria and how to keep the register properly helps business owners manage company assets effectively and avoid accounting errors that can cause problems during tax inspections.
Definition of equipment under the law
Equipment within the meaning of the accounting rules is a special category of a business's assets, subject to separate recording and settlement rules. Until 31 December 2019, the mandatory register covered equipment with an initial value exceeding PLN 1,500. Today, equipment in practice means assets with an expected period of use not exceeding one year, and assets with an initial value of up to PLN 10,000 whose value was expensed in one go, without entry in the fixed asset register (Article 22d section 1 of the PIT Act (personal income tax)).
The PLN 1,500 threshold was the lower limit for the mandatory equipment register until the end of 2019. The current regulation on the KPiR (of 6 September 2025, Journal of Laws (Dz.U.) item 1299) does not provide for such a register – assets that are not fixed assets are expensed directly as tax-deductible costs, and the register can be kept voluntarily
In business practice, equipment usually means items bought to be used in the company rather than for resale – they are not goods for resale. Examples include mid-range office devices, furniture, lower-end computer hardware and other items used to run the business.
The Minister of Finance regulation on keeping the tax revenue and expense ledger of 26 August 2003 (in force until the end of 2019) defined equipment as tangible assets related to the business activity carried out but not classified as fixed assets under the income tax act. The current explanatory notes to column 15 of the KPiR template describe equipment in the same way. Other transactions, such as booking the sale of real estate in KPiR, follow separate rules.
The key criterion for classifying an item as equipment is its connection with the business activity. Items used for private purposes cannot be entered in the equipment register, even if they meet the other value and time criteria
It is worth stressing that the definition of equipment is both positive and negative. On the one hand, it states which assets can fall into this category; on the other, it indicates that equipment means assets not classified as fixed assets. This dual nature of the definition gives business owners some flexibility in classifying assets worth up to PLN 10,000.
Differences between the equipment register and the fixed asset register
To understand the differences between the equipment register and the fixed asset register, you first need to know the definition of a fixed asset. Fixed assets are assets owned or co-owned by the business owner, complete and fit for use, with an expected period of use for business purposes longer than one year (Article 22a section 1 of the PIT Act). Value is not part of the definition, but it determines how the asset is settled – the threshold is PLN 10,000. Above that threshold, the cost is settled through depreciation of fixed assets.
The basic difference between the two categories is the value threshold combined with the period of use. An asset worth up to PLN 10,000 does not have to be depreciated and can be expensed in the month it is put into use, while an asset worth more than PLN 10,000 with a period of use longer than one year must be entered in the fixed asset register and depreciated (Article 22d sections 1 and 2 of the PIT Act). This difference is fundamental to how individual assets are settled for tax purposes.
Classifying an item as a fixed asset requires it to be used for purposes related to the business activity (Article 22a section 1 of the PIT Act). The same condition applies to equipment – an expense is a tax-deductible cost only if it is connected with the business (Article 22 section 1)
Another important difference is how depreciation and expensing work. Fixed assets are subject to systematic depreciation write-offs spread over time, in line with the depreciation rates set out in the tax rules. In the case of equipment, the expenses incurred on its purchase can be expensed directly as tax-deductible costs, which makes bookkeeping considerably easier. If you are unsure which group an item belongs to, have a look at our article fixed asset or equipment – how to classify.
The period of use is another criterion that distinguishes the two categories. An asset with an expected period of use not exceeding one year is not a fixed asset, regardless of its value, whereas fixed assets are used for longer than a year. This time criterion directly affects how the costs of acquiring a given asset are settled.
Flexibility in classifying assets
In practice there is no clear-cut criterion determining which register an item should go into, which gives business owners some freedom of choice. This applies especially when the value of an asset does not exceed PLN 10,000 – the business owner then has three options.
The first option is to classify the item as a fixed asset and make depreciation write-offs under the general rules. Alternatively, the business owner may choose one-off depreciation in the month the asset is put into use or in the following month (Article 22f section 3 of the PIT Act), provided that the expected period of use is longer than one year.
The option of one-off depreciation of fixed assets worth up to PLN 10,000 is a significant simplification for small businesses. It allows the full value of the asset to be expensed immediately as a tax-deductible cost, which may have a positive effect on the tax result
The second option is to treat the item as equipment and expense its purchase directly as a tax-deductible cost. This option is available when the expected period of use does not exceed one year – the asset is then not a fixed asset.
The third option is not to enter the item in the fixed asset register and to expense its value as a tax-deductible cost in the month it is put into use, even if it is to be used for longer than a year (Article 22d section 1 of the PIT Act). This option is particularly attractive for low-value assets.
Criteria for classifying items as equipment
Classifying assets as equipment requires several key criteria to be met, and they must be assessed together. The basic criterion is the initial value of the asset: until the end of 2019, equipment worth more than PLN 1,500 had to be entered in the mandatory register, and today the threshold is PLN 10,000 – up to this amount, an asset used for longer than a year can be expensed in one go. This value criterion is the foundation for further analysis.
The second criterion concerns the expected period of use – an asset that is to be used for no longer than one year is not a fixed asset, whatever its value. Assessing this criterion requires the business owner to analyse realistically how the asset will be used. Both physical wear and economic usefulness should be taken into account.
- Assets worth more than PLN 10,000 require particular care when classifying them
- A period of use not exceeding one year is a key criterion for equipment
- The connection with the business activity must be direct and documented
- Equipment is used in the company, not resold
- Exclusion from the category of goods for resale is essential for correct classification
The third criterion concerns the connection with the business activity. An asset can be classified as equipment only if it serves the owner's business purposes. Private use disqualifies the item from being entered in the equipment register.
Documentation justifying the classification of an asset as equipment should include an analysis of all the classification criteria. It is particularly important to document the expected period of use and how the asset is used in the business
Equipment register template – recommended elements
A properly kept equipment register should contain elements that allow full identification and tracking of individual assets. The current rules do not specify its content; the practical template is based on the data that § 4 section 3 of the 2003 regulation required until the end of 2019.
The basic elements of the equipment register include identifying and descriptive information that makes it possible to identify each asset unambiguously and track its history in the business. Each entry in the register should be complete.
| Register element | Description | Example | Legal notes |
|---|---|---|---|
| Sequence number | Unique entry identifier | 001/2024, 002/2024 | Continuous numbering within the year |
| Acquisition date | Day the asset was received | 15.03.2024 | Date consistent with the document |
| Document number | Invoice/bill identification | FV/123/2024 | Full number from the document |
| Equipment name | Detailed description of the asset | Laptop Dell Inspiron | Allowing identification |
| Acquisition value | Price or production cost | PLN 2,800.00 | Gross or net value |
| Ledger item | Reference to the KPiR | 45 | Cost entry number |
| Disposal date | Day use ended | 20.11.2024 | Together with the reason |
The sequence number is the unique identifier of each item of equipment in the register. Numbering should be continuous, most often within the financial year, which makes it easier to search for and identify individual items later.
The acquisition date must correspond to the date the business owner actually received the asset, which should match the date shown on the purchase document. If the asset was produced in-house, the acquisition date is the day production was completed and the asset was put into use.
The invoice or bill number must be entered in the register in full, exactly as it appears on the source document. Abbreviated numbering can make it harder to identify documents later during tax inspections
The name of the equipment should be detailed enough to identify the asset unambiguously. General terms such as "computer hardware" are not enough – give the specific model, brand and other distinguishing features.
Procedure for making entries in the register
Making entries in the equipment register requires a set procedure that keeps the documentation complete and reliable. The procedure should be applied consistently to all assets that qualify for this register.
The first step is to verify whether the asset meets the criteria for equipment. Check the initial value, the expected period of use and the connection with the business activity. Only after a positive check can you make the entry in the register.
- Check the asset against the classification criteria
- Collect all the required source documents
- Assign the next number in the equipment register
- Enter complete data in all columns of the register
- Link the entry to the relevant item in the tax revenue and expense ledger
- Archive the source documents so they can be retrieved quickly
- Update the register whenever the status of the asset changes
The second step involves collecting all the source documents that will form the basis of the register entry. The most important document is the purchase invoice or bill, but other documents may also be needed, such as acceptance reports, contracts or transport documents.
The next number in the register should be assigned according to the numbering system adopted. Continuous numbering within the financial year is most common, as it makes searching and checking entries easier later. The number should be assigned when the entry is made, not earlier.
Data should be entered in the equipment register immediately after the asset is acquired. Delays in keeping the register can cause problems during tax inspections and make day-to-day asset management harder
Filling in all the columns of the register completely is recommended and should not be skipped. Each column contains important information that may be needed during tax inspections or internal checks. Empty fields make it harder to show when and how a given asset was settled.
Link with the tax revenue and expense ledger
The equipment register should be closely linked with the tax revenue and expense ledger, which keeps the whole accounting system of the business consistent. Each item of equipment entered in the register should be reflected in the relevant cost entry in the KPiR (expenses on equipment are entered in column 15 – "other expenses").
Expenses incurred on acquiring equipment are expensed directly as tax-deductible costs in one go (for assets under Article 22d section 1 of the PIT Act – in the month they are put into use), which is one of the main advantages of this form of record. This means the full value of the equipment can be deducted from the tax base in the year of acquisition.
In the register column for the ledger entry number, enter the exact KPiR item number under which the cost of acquiring the asset was recorded. This link makes it possible to find the relevant ledger entry quickly and check that the settlement is correct. For clients of our bookkeeping services, we keep the KPiR together with the related registers.
The value of equipment entered in the tax revenue and expense ledger should be identical to the value shown in the equipment register. Any discrepancies between these documents may be treated as accounting errors requiring correction
The time at which the expense is recorded as a cost in the KPiR should correspond to the acquisition date of the equipment shown in the register. This principle keeps the various elements of the accounting system chronologically consistent and makes later checks and financial analyses easier.
Documenting the disposal of equipment
The disposal of equipment must be properly documented in the register, which is important for a correct tax settlement and for keeping the accounting documentation complete. Disposal can happen for various reasons, and each of them requires separate treatment.
The disposal date must be recorded precisely in the register, together with a detailed description of why the asset stopped being used. The most common reasons for disposal are sale, donation, destruction, wear, theft or loss.
An IT company bought a laptop worth PLN 2,200 in January 2024, which was entered in the equipment register and expensed. In October of the same year, the laptop was sold to an employee for PLN 1,500. The date of sale and the reason for disposal were recorded in the register, and the revenue obtained was settled accordingly in the KPiR.
When selling equipment, remember that the revenue obtained must be settled properly for tax purposes. If the item of equipment was previously expensed in full, the revenue from its sale is taxed as business revenue.
- The disposal date must be precise and match the facts
- The reason for disposal must be described in detail in the register
- Documents confirming the disposal should be kept
- The tax settlement of a disposal may require additional steps
- The register should be updated immediately after the disposal
Disposing of equipment by donation may have particular tax consequences for both the donor and the recipient. The value of the equipment handed over may be subject to the tax on civil law transactions or to income tax
If equipment has been destroyed or lost as a result of random events, it may be necessary to draw up a report or obtain a certificate from the relevant services. These documents form the basis for settling the loss in the KPiR.
Checking and verifying the equipment register
Regular checking and verification of the equipment register is an integral part of keeping a business's accounts properly. These checks should cover both the formal and the substantive aspects of the register.
A formal check covers the completeness of all required data, correct numbering, consistency of dates and legibility of entries. Each entry in the register should contain all the elements adopted in the register template.
A substantive check focuses on whether individual assets have been correctly classified as equipment. The value and time criteria and the connection with the business activity are checked. Borderline assets whose classification may raise doubts require particular attention.
Consistency between the equipment register and the tax revenue and expense ledger is another area requiring regular verification. All equipment items should be reflected in the relevant cost entries in the KPiR, and the values in both documents must be identical.
Carrying out periodic physical stocktakes of equipment makes it possible to verify the actual state of assets and identify any discrepancies between the recorded and the actual state. Stocktakes should be documented in a way that allows changes to be tracked
Archiving the source documents relating to equipment requires particular attention because documents connected with the KPiR must be kept until the limitation period for the tax liability expires (Article 86 § 1 of the Tax Ordinance Act (Ordynacja podatkowa)) – as a rule, five years from the end of the calendar year in which the tax payment deadline passed (Article 70 § 1). Documents should be stored in a way that keeps them intact and accessible.
The most common mistakes in keeping an equipment register
Business practice shows several mistakes that are made most often when keeping an equipment register and that can cause problems during tax inspections and irregularities in tax settlements.
Incorrect classification of assets is one of the most common mistakes. Business owners often find it difficult to assess the expected period of use of an asset or misinterpret the value criteria. Borderline situations, where an asset could fall into different categories, are particularly problematic.
Incomplete data in the register is another frequent problem. Skipping some columns of the register, imprecise descriptions of assets or a missing link with KPiR entries can make it harder to show that the settlements are correct during an inspection.
- Incorrect assessment of the period of use of assets
- Skipping key elements in the register
- Lack of synchronisation with the tax revenue and expense ledger
- Incorrect documentation of equipment disposal
- Irregular updating of the register
Delays in making entries in the register are a serious organisational problem. The register should be updated on an ongoing basis, and delays can make proper asset management harder and increase the risk of accounting errors.
Mixing the equipment register with the fixed asset register or with the register of office supplies is a common organisational mistake. Each category of assets requires separate treatment and its own documentation
Incorrect settlement of equipment disposal, especially on sale, can lead to tax errors. Business owners often forget that revenue from the sale of assets previously expensed must be settled.
Benefits of keeping the register properly
Keeping the equipment register properly brings a business a number of benefits, even though it has not been a legal obligation since 2020. These benefits are both operational and strategic for the development of the company.
Transparent settlement of costs is one of the main benefits of classifying equipment correctly. Being able to expense equipment purchases directly as tax-deductible costs lets the business recover its outlay faster and improves its cash flow.
Better control of company assets is another important benefit. The equipment register makes it possible to track assets effectively, monitor how they are used and plan future investments. As a result, the business owner has a full picture of their assets and can make informed business decisions.
Easier inspections are a significant operational benefit. A properly kept register makes it easier to get through tax inspections, which reduces the risk of penalties and additional tax payments. Inspectors can easily verify the correctness of settlements on the basis of complete documentation.
Keeping the equipment register systematically makes it easier to plan the budget for future periods. Analysing historical equipment data allows better forecasting of investment needs and optimisation of the business's operating costs
Reducing the risk of accounting errors is another important benefit. Keeping the register systematically and correctly reduces the likelihood of mistakes in classifying assets and errors in tax settlements, which contributes to the company's financial stability.
