The obligation to record sales on a cash register (kasa fiskalna) affects an ever wider group of business owners in Poland. A particularly important issue is how the sale of fixed assets is treated under this obligation. Changes to the rules introduced after 2014 significantly affected how such transactions are settled, creating new exemption options for business owners.
Business owners often face the dilemma of whether a one-off sale of a company car, machine or other fixed asset to a private individual means they have to buy and install a cash register. This problem is especially important for small businesses that have so far been exempt from the cash register obligation because they did not exceed certain turnover limits. People selling without a registered business face a similar dilemma; we describe their situation in our article on cash registers in unregistered activity.
Under the current rules, an ever wider group of taxpayers must record sales to private individuals who do not run a business and to flat-rate farmers on a cash register. This group includes, among others, tax advisers, beauticians, hairdressers and car mechanics
Cash register rules before 2014
Until the end of 2014, much stricter rules applied to recording sales of fixed assets on cash registers. Business owners who were exempt from the cash register obligation because they did not exceed the turnover limit of PLN 20,000 had to include in this limit the value of the fixed assets and intangible assets they sold. We record the sale of a fixed asset, its removal from the register and the VAT settlement for clients as part of our accounting services.
This system meant that every sale to private individuals who do not run a business, regardless of the nature of the asset sold, affected the business owner's turnover in a given tax year. Even a one-off sale of a company car or machine could cause the limit for the cash register exemption to be exceeded.
Where business owners were exempt from the cash register obligation until the end of 2014 because they did not exceed the PLN 20,000 turnover limit, after exceeding the limit – once two months following the month in which it was exceeded had passed – they had to record sales on a cash register. This also applied where company fixed assets or intangible assets were sold
The practical consequences of these rules were particularly harsh for small business owners. A business that had modest activity of, for example, PLN 15,000 throughout the year had to buy and install a cash register within two months after selling one fixed asset for PLN 10,000. This generated costs out of proportion to the scale of the business.
Tax authority rulings from that period clearly confirmed this practice. This position was confirmed in the Individual Tax Ruling of the Director of the Tax Chamber in Warsaw (Dyrektor Izby Skarbowej w Warszawie) of 3 July 2013, reference IPPP2/443-431/13-5/KG. The ruling clearly stated that a business owner exempt from the cash register because they had not exceeded the limit and planning to sell fixed assets in the form of agricultural machinery had to include the value of this sale in the exemption limit.
Current rules on selling fixed assets
The legal situation changed significantly after 2014 thanks to new rules in the regulation of the Minister of Finance on exemptions from the obligation to keep records using cash registers. Currently, the key provision for business owners is item number 50 of the annex to the regulation in force of 17 December 2024 (Journal of Laws (Dz.U.) 2024, item 1902), which introduced important simplifications for selling fixed assets.
Under the current rules, the activities exempt from the obligation to record sales on a cash register include the supply of goods and services which, under income tax rules, the taxpayer classifies as fixed assets and intangible assets subject to depreciation. The condition for this exemption is that the entire transaction is documented with an invoice.
Under the annex to the regulation of the Minister of Finance, to benefit from the cash register exemption when selling a fixed asset to private individuals who do not run a business, the transaction must be documented with an invoice. Sales of fixed assets and intangible assets listed in item 50 of the annex to the regulation are not included in the turnover limit for the cash register exemption
This change in the rules is of fundamental importance for business owners running small businesses. It means that a properly documented sale of fixed assets does not affect the turnover limit for the cash register exemption. As a rule, a business owner can therefore sell a company car, machine or other fixed assets without the risk of exceeding the PLN 20,000 annual turnover limit as a result (§ 3(3)(1) of the regulation).
However, there are certain limits to this rule. If a fixed asset or intangible asset is listed in the catalogue of supplies set out in § 4 of the Regulation, such a sale must be recorded on a cash register despite the exemption. This rule is intended to ensure proper control over certain categories of goods of particular economic importance.
Practical aspects of documenting the sale of fixed assets
The key element of using the exemption from recording sales of fixed assets on a cash register is proper documentation of the transaction. The rules require the entire transaction to be documented with an invoice, which means issuing a document that meets all formal and substantive requirements for invoices.
An invoice documenting the sale of a fixed asset must contain all the elements required by the VAT rules. These include, among others:
- Identification details of the seller and the buyer
- Invoice number assigned sequentially
- Date of issue of the invoice and date of sale
- Name and quantity of the fixed asset sold
- Net unit price and net value
- VAT rate and amount of tax
- Gross amount payable
A business owner is exempt from the cash register obligation because they have not exceeded the turnover limit. If in a given month their turnover from sales to private individuals was PLN 15,000 and they additionally sold a machine that is a fixed asset for PLN 25,000 to a private individual, they need not include this amount in the turnover limit, provided the transaction is documented with an invoice
Pay particular attention to describing the subject of the sale correctly on the invoice. The rules do not require the invoice to state that the asset sold is a fixed asset, but it is advisable that this is clear from the description and from the fixed asset register. This may matter in the event of a tax authority audit checking whether the exemption was applied correctly.
In addition, the invoice must be issued in accordance with the VAT rules, which means applying the correct VAT rate and meeting all formal requirements. The sale of a used fixed asset used exclusively for exempt activity, on whose purchase there was no right to deduct VAT, may be exempt under Article 43(1)(2) of the VAT Act, which must also be indicated on the invoice. The margin scheme (Article 120 of the VAT Act), on the other hand, applies to the resale of second-hand goods bought for resale, not to a typical sale of your own fixed asset.
Comparison of the rules before and after 2014
The change in the rules introduced after 2014 brought significant simplifications for business owners running smaller businesses. A comparison of the two systems shows how important these changes were in business practice.
| Aspect | Until 2014 | After 2014 |
|---|---|---|
| Counted towards the limit | Yes, always | No, if invoiced |
| Documentation requirement | Standard | Mandatory invoicing |
| Effect on the exemption | Direct | None |
| Flexibility | Low | High |
Before 2014, every sale of a fixed asset to a private individual who does not run a business automatically affected the turnover limit for the cash register exemption. This meant that a business owner selling a company car for PLN 25,000 had to buy a cash register within two months, even if their other turnover during the year was only a few thousand złoty.
Today the situation is completely different. The same business owner can sell a fixed asset, issue an invoice and not include the value of this transaction in the turnover limit. As a result, they can continue to benefit from the cash register exemption as long as their other activity does not exceed the set threshold.
The change in the rules after 2014 is particularly important for business owners who are exempt from recording sales to private individuals who do not run a business and to flat-rate farmers because they have not exceeded the PLN 20,000 turnover limit. If the sale of a fixed asset or intangible asset is properly documented with an invoice, it will not affect the cash register exemption limit
This change also has a positive effect on the liquidity of small businesses. Previously, the fear of exceeding the limit could discourage selling unnecessary fixed assets, which tied up capital in unproductive assets. Today business owners can freely optimise the structure of their assets without fearing additional administrative burdens.
Exceptions and limits to the exemptions
Despite the simplifications introduced, the system of exemptions from recording sales of fixed assets on a cash register is not absolute. There are specific exceptions and limits that business owners must take into account in practice.
The most important limit is the requirement to document the entire transaction with an invoice. This means that selling a fixed asset without issuing an invoice automatically rules out the exemption. In such a situation the value of the sale must be included in the turnover limit, which may lead to exceeding the threshold and having to buy a cash register.
Another important limit is § 4 of the Regulation, which sets out the catalogue of supplies that must be recorded on a cash register. If the fixed asset sold is listed in this catalogue, the business owner must record the sale on a cash register, regardless of whether an invoice was issued.
The categories of goods requiring special recording include, among others:
- Vehicle parts and accessories, engines, bodies, trailers and semi-trailers (cars themselves are not listed)
- Fuels and diesel oils
- Alcoholic and tobacco products
- Jewellery and articles of precious metals
- Consumer electronics and audio-video equipment
If a fixed asset or intangible asset is listed in the catalogue of supplies set out in § 4 of the Regulation, such a sale must be recorded on a cash register despite the exemption. This rule is intended to ensure proper control over certain categories of goods of particular economic importance
Also remember the limits arising from the type of buyer. The exemption applies only to sales to private individuals who do not run a business and to flat-rate farmers. Sales of fixed assets to other businesses, organisations or public institutions are not subject to the cash register obligation at all (Article 111(1) of the VAT Act). Unusual transactions also need care at the till, for example services sold with a free gift.
In addition, business owners must be particularly careful when determining the nature of the asset sold. To benefit from the exemption, the item sold must genuinely be a fixed asset within the meaning of the income tax rules, which means meeting the value, time and functional criteria set out in those rules.
Consequences of breaching the rules
Failure to comply with cash register obligations may lead to serious financial and administrative consequences for business owners. The bodies of the National Revenue Administration (KAS) carry out audits in this area, and irregularities found may result in sanctions.
The basic sanction for failing to record sales on a cash register is an additional tax liability equal to 30% of the input VAT on purchases of goods and services, set for the period until recording on a cash register begins (Article 111(2) of the VAT Act). It is not set for individuals who bear criminal tax liability for the same act – selling without a cash register or failing to issue a receipt (paragon) is an offence under Article 62 § 4 of the Fiscal Penal Code (Kodeks karny skarbowy) (a fine of up to 180 daily rates, and in a less serious case – a fine for a fiscal petty offence). Businesses with more than one device should also know how to report sales from several cash registers in JPK.
In addition, incorrect recording of sales may lead the tax authorities to question the right to use certain exemptions or tax reliefs. This may mean having to pay additional tax with late-payment interest, which places a significant burden on the business's budget.
Practical example: A renovation company was exempt from the cash register because of its low turnover. During the year it sold a company van for PLN 30,000 to a private individual, but did not issue an invoice, documenting the transaction only with a sale and purchase agreement. The tax audit included this sale in the turnover limit – the company exceeded the PLN 20,000 limit, lost the exemption after two months, and because it continued to sell services without a cash register, it exposed itself to sanctions and had to buy a cash register.
The consequences of applying exemptions incorrectly are particularly important. If a business owner wrongly classifies the sale of a fixed asset as exempt from cash register recording and an audit shows that the exemption conditions were not met, this may lead to a penalty and the need to settle all obligations retrospectively.
That is why proper preparation of documentation and thorough knowledge of the rules before selling a fixed asset are crucial. If in doubt, consult a tax adviser or ask the tax authorities directly by applying for an individual tax ruling (KIS).
Practical tips for business owners
To make effective use of the options offered by the current rules on selling fixed assets, business owners should follow a few key practical principles. Above all, always remember the obligation to issue an invoice documenting the sale of a fixed asset.
The invoice should be issued in line with all formal and substantive requirements of the VAT rules. Pay particular attention to:
- Correctly identifying the parties to the transaction
- A precise description of the fixed asset sold
- Correct application of the VAT rate
- Keeping invoice numbering sequential
- Correct dating of the document
Before the sale, it is also worth checking whether the fixed asset sold is listed in the catalogue of goods that must be recorded on a cash register. If in doubt, you can seek help from a tax adviser or apply to the tax authorities for a ruling.
Documentation of the sale of fixed assets should be kept for the period set out in the accounting and income tax rules. Invoices and other documents related to the transaction may be audited by the tax authorities even several years after the sale. Proper archiving of documentation is key to avoiding problems in the future
It is also worth keeping detailed records of fixed asset sales separately from the rest of the business. This will make it easy to show auditors that certain transactions were properly documented and are not included in the turnover limit for the cash register exemption.
Business owners should also regularly monitor changes in the rules on cash registers. Regulations in this area are amended relatively often, and not knowing the current rules may lead to undesirable financial and administrative consequences.
When planning a larger sale of fixed assets, consider spreading the transactions over time or consulting a tax adviser to optimise the tax and administrative burden. This may be particularly important for business owners close to the limits for various exemptions and reliefs.
