Registered lump sum

Aregistered lump sum is characterized by a flat tax rate depending on the business activity. Lump sum is one of three forms of simplified accounting. The other two are revenue and expense ledger and tax card. I wrote about choosing the right form of taxation in the article which forms of accounting for business.

Revenue records

In the case of a registered lump sum, records of income are kept, just as with any other form of taxation. Records are kept separately for each tax year and include only revenue. There is no need to show the costs, because they are not taken into account when determining the amount of tax.

The very method of income recording may be carried out both manually and by means of specialized software. In both cases, however, the layout and design of the boxes must be compliant with the regulations. On the market, there are many books with ready-made rubrics for keeping records of income in the form of a lump sum. It is not necessary to inform the tax office about keeping the records. If you keep the records on your own, you should keep them at the place where you run your business or at the place indicated as the seat of your business.

In addition to revenue records, you should also keep other records, such as fixed asset records and employment records. However, this is only necessary if the company owns fixed assets or employs workers.

Turnover limits for the registered lump sum

Entrepreneurs can pay tax in a lump sum as long as in the previous year:

  • Earned revenues from exclusively self-employed activities not exceeding €2,000,000 or
  • they earned income exclusively from activities conducted in the form of a company, and the sum of income of the company's partners from such activities did not exceed EUR 2,000,000.

An interesting fact for people starting a business. If you have not been on a tax card in a tax year, you can choose a registered lump sum without the limit of EUR 2 000 000. It means that a businessman who exceeds the limit in the first year of his business activity, does not lose his right to account using the registered lump sum. Only in subsequent years will he be obliged to keep track of the turnover limit.

Accounting services in the framework of the registered lump sum
  • Recording of documents for VAT settlements,
  • Preparation of statistical reports for the Central Statistical Office,
  • Preparation and ongoing support for JPK V7 declarations,
  • Representing clients before Tax Offices and Social Insurance Institution (ZUS),
  • Preparation of annual personal income tax returns,
  • Determining the amount of advance payments for lump-sum income tax,
  • keeping records of fixed assets
Rates of the registered lump sum

The flat rates for 2021 are 17%, 15%, 12.5%, 10%, 8.5%, 5.5%, 3% and 2%. You can pay several rates at the same time if your business is diversified.

The 17 percent flat tax rate applies:
  • doctors, dentists, veterinarians,
  • dental technicians,
  • feldsher, midwives, nurses,
  • he explains,
  • teachers in the provision of educational services consisting of providing lessons on an hourly basis.
The 15% flat tax rate applies to, among others

Activities providing services in:

  • Parking lots,
  • Accommodations,
  • Software,
  • Photography,
  • Wholesale, motorcycles, cars, parts and accessories
  • Radio-taxi exchanges
12.5 per cent on revenue from the provision of rental services beyond the amount of PLN 100,000;
10 percent on income from the disposal of property rights or real estate belonging to the company's assets;
8.5% of revenue:
  • from service activities, including income from catering activities involving the sale of beverages with alcohol content of more than 1.5%,
  • from lease, sublease, tenancy or other contracts of similar nature,
  • from providing pre-school education services,
  • from the provision of services related to the operation of botanical and zoological gardens and nature conservation areas and facilities,
  • commissions earned by the commission agent from sales under the commission agreement,
  • commission earned by a press distributor under a press distribution agreement;
5.5 percent on income from:
  • from manufacturing activities, construction works or the transport of cargo by means of rolling stock of more than 2 tonnes,
  • from commissions on commercial activities related to the sale of single-use public transport tickets, stamps for monthly tickets, postage stamps, tokens and magnetic cards for vending machines;
3 percent on income from:
  • from catering activities, with the exception of revenue from the sale of beverages containing more than 1.5% of alcohol,
  • from trade service activities,
  • from providing services related to animal production,
  • from paid disposal of movable property components used in non-agricultural business activity;
2 percent of revenue
  • from the sale of non-industrially processed crop and animal products originating from own cultivation, rearing or breeding.
Who cannot use the registered lump sum?

Not every business qualifies for lump sum billing.
The Act on Lump Sum Income Tax of November 20, 1998 excludes certain industries such as

  • pharmacies,
  • trade in motor vehicle parts,
  • the production of excisable goods (excluding electricity)
You also cannot switch to a lump sum in a tax year after changing your business:
  • from operating independently to operating as a partnership with your spouse,
  • in the form of a partnership with a spouse for a business. which will be conducted independently by one or each of the spouses,
  • by the spouse to an activity which will be carried out by the other spouse independently

If the spouse or spouses before the aforementioned change paid tax on this activity in accordance with the general rules.

Moreover, if you work under an employment contract and intend to run your own business, you need to be careful. You cannot perform for your former employer the same activities in the year preceding the tax year or in the tax year within the employment relationship. In such a situation you will lose the right to a lump sum from registered income. This will result in the need to settle on the basis of general principles.

Important tax deadlines

taxpayers on tax card settle accounts by the7th day of each month;

by the 20th day of each month, a flat-rate tax on registered income is paid;

until the 20th day of each month advance payments are made for income tax on persons conducting business on general terms;

advance payments for corporate income tax are made by the20th of each month;

till 25th day of each month settle VAT tax and submit JPK_V7M form. *does not apply to taxpayers settling quarterly.

until the 25th day of the month following the month in which the obligation to submit the summary VAT-EU information arose (electronic version), VAT EU shall be settled for the previous month. 

Important accounting terms - ZUS contributions

by the 10th of each month for employers who do not employ workers;

contributions for employees and for the employer of employees are paid by the15th of each month.