Flat-rate income records – rules, document template

Do you plan on settling your business transactions on a flat-rate basis applicable to recorded revenue and are you wondering how to correctly record all the revenue when using flat rates? You have found a solution! This guide will help you understand record-keeping, explain when and what entries to make and how to settle the income tax in this simplified taxation form.

Revenue recording on a flat rate basis – how does it work?

Every entrepreneur who has selected the form of flat-rate taxation on recorded revenue is obliged to keep revenue records from the first day of being subject to taxation. These records must include all the received business revenue, excluding expenses (as they do not affect the amount of tax if the flat rate method is used).

The records should include:

• revenue date
• document (e.g. Invoice), number
• amount of revenue assigned to the respective flat rates,
• and at the end of the month – the sum total of revenue.

Revenue records must be kept in accordance with the rules set out in the Ordinance of the Minister of Finance of 17 December 2021 on revenue record-keeping and lists of tangible and intangible fixed assets. This document contains a template for the records and detailed guidelines.

Our EFEKTA accountancy firm can help you with accounting settlements if your business uses the flat-rate method!

Who is required to keep revenue records?

Revenue records must be kept by entrepreneurs who indicated in the CEIDG-1 form that they wish to use on the flat-rate method of settlement on the recorded revenue. This obligation also applies to individuals who have decided to tax private rent on a flat rate basis.

Who cannot use the flat rate method?

Not everyone can benefit from this simplified taxation form. The legislator points out two main limitations:

1. Revenue limit

According to the Flat Rate Income Tax Act, only taxpayers whose annual revenue does not exceed a certain limit may benefit from the flat rate method. The threshold value is €2 million converted into PLN (e.g. in 2023, this was PLN 9,654,400).

If the entrepreneur exceeds this threshold, they lose the right to use the flat rate the following year and is obliged to change it to a different form of taxation.

Example:

In December 2024, Anna exceeded the allowable revenue limit. Consequently, from 1 January 2025, she must use different rules of accounting – for example, according to the tax rate thresholds or the linear tax method.

2. Type of activities

The second restriction is a catalogue of activities and situations in which the flat rate on recorded income does not apply. The regulations (specifically Article 8(1) of said Act) clearly specify that the fixed rate cannot be used, among others, by:

• persons who settle their accounts in the form of a tax card,
• persons benefiting from income tax exemption,
• entrepreneurs trading as pharmacies or trading in motor vehicle parts and accessories,
• persons selling foreign exchange assets,
• taxpayers who produce products subject to excise tax (with exceptions, such as energy from RES),
• spouses who have converted their business form between each other and previously used a form of taxation other than the flat rate method.

If an entrepreneur provides a service or sells goods which exclude the option of taxation on a flat rate basis, they automatically lose the right to use this form as soon as such revenue is obtained. From now on, the entrepreneur must change to the tax thresholds method and carry out settlements based on other regulations.

Example:

Mr Michał is a sole trader and settles his business on a flat rate basis, selling handmade jewellery. On 10 February 2025, he decided to expand his business by selling motorbike parts and completed his first transaction. At this point – due to the commencement of an activity which excludes the option of using the flat rate – he loses the right to use this method of taxation. Since 10 February, he has had to settle according to the tax thresholds method.

Which documents confirm the revenue?

The basis for entry in the revenue records includes i.e.:

• VAT invoices,
• receipts,
• customs documents,
• correcting notes,
• internal accounting records (in the case of sales without an invoice),
• daily invoice statements.

Remember that entries in the records must be made in chronological order and should be made no later than on the 20th day of the month following the month during which the revenue was obtained.

Example revenue records

1. First revenue as a business

An entrepreneur who starts a business and receives the first revenue on the same day is obliged to include it in the revenue records – even if the invoice is issued later. It is the date on which the revenue was received that counts, not the date on which the document was issued.

2. Income documented by internal evidence

If a taxpayer – e.g. a doctor or a dentist – provides services without invoices, they can enter one internal statement for the entire day into the record, under the condition that all such services were covered by the same flat rate.

3. Single invoice – different flat rates

If one invoice contains different service types taxed at different rates, these should be separated accordingly in the revenue records. Two entries are therefore created from a single invoice – each at the assigned rate.

4. Daily statement

In the case of retail sales, where many invoices are issued every day, a daily statement can be produced. A single entry in the revenue records, referring to the total revenue for the day, recorded according to the relevant rates, is sufficient.

5. Deduction of loss from previous years

Taxpayers who have incurred a loss during previous years (under a different form of taxation, such as the tax thresholds system) may deduct it from their income achieved during the given year. Income tax is then calculated on the difference between the revenue and the value of the deductible loss.

Revenue records for flat-rate taxpayers – template

A detailed template for revenue records is specified in the Regulation of the Minister of Finance concerning the revenue record-keeping and the list of tangible and intangible fixed assets. This template includes the following elements:

• No. – the sequential number of each entry,
• Date of entry – the date on which the revenue was recorded,
• Revenue date – the point in time when revenue is actually achieved and personal income tax liability arises,
• Accounting document number – the document on the basis of which the entry was made,
• Revenue amount by flat rates – revenue classified according to the relevant tax rates,
• Revenue summary – total revenue for the period,
• Notes – additional information, e.g. on subsidies and grants.

Revenue records and the JPK_EWP document

If revenue records are kept electronically, the entrepreneur must be prepared for having to generate a JPK_EWP file at the request of the tax office. This applies to entrepreneurs using the flat rate taxation method on their recorded revenue. It should be noted that persons keeping their records exclusively in traditional, paper form are not obliged to create and submit a JPK_EWP file.

An obligation to regularly send the revenue records to the tax office is planned from 2026 onwards. The legislation was initially supposed to come into force in 2023, however, because of the quick pace at which tax changes were introduced, the legislator decided to change the implementation deadline for entities obliged to maintain electronic records (such as revenue and expenditure books, accounting book or revenue records) by three years.

Record correctness – what does it mean?

Revenue records must be kept:

• reliably, i.e. in line with reality,
• correctly, i.e. in accordance with the regulations,
• preferably according to the established record keeping template,
• with bound and numbered pages.

Errors do not automatically invalidate the correctness of the records – provided the errors were corrected before the audit began or their impact is negligible (e.g. up to 0.5% of total annual revenue).

Different flat rates used in a single invoice and how to record them

Taxpayers using the flat rate taxation on their recorded revenue must take different tax rates into account, depending on the type of their business activity. Below is a summary of the applicable rates, including examples of the activities to which they apply:

• 2% – applies i.e. to the sale of plant and animal products from own cultivation, breeding or rearing, if processed in a non-industrial manner.
• 3% – includes i.e.:
  • catering activities, excluding the sale of alcoholic beverages above 1.5%,
  • trade-related services,
  • animal production-related services,
  • sales of fish from the fishermen’s own catch, as long as the fish are not processed or canned.
• 5.5% – applies to:
  • manufacturing activities,
  • construction work,
  • carriage of freight by vehicles with capacity over 2 tonnes,
  • commissions from the sale of public transport tickets, stamps or telephone cards.
• 8.5% – applies to:
  • general services,
  • catering of alcoholic beverages above 1.5%,
  • fire-fighting services,
  • educational services,
  • library activities.
• 8.5% up to PLN 100,000 and 12.5% above this amount – applies to i.e.:
  • accommodation-related services,
  • tenancy and property management services,
  • research and development,
  • driverless vehicle hire.
• 10% – applies to property purchase and sales for own account.
• 12% – includes i.e. services:
  • publishing related to computer games,
  • consultancy services related to computer hardware
• 14% – applies to services:
  • medical,
  • architectural and engineering,
  • specialised design,
  • technical research and analysis.
• 15% – applies to:
  • data reproduction from computer media,
  • motorbikes and motorbike parts intermediation,
  • insurance and financial intermediation.
• 17% – intended for the so-called liberal professions, i.e. activities performed personally by professionals, such as doctors, dentists, veterinarians or midwives.

Obligations of the trader and responsibility for correct rates

The choice of the appropriate flat rate depends on the type of the business activity, defined using the PKD codes. The entrepreneur is responsible for correct allocation of the provided service to the rate specified in the legislation. Detailed regulations can be found in Article 12 of the Act on flat rate tax on recorded revenue.

If services covered by different flat tax rates are included in the same invoice, they should be separated accordingly and listed separately in revenue records.

Flat rate settlement – PIT-28 return

The annual flat rate tax return is submitted using the PIT-28 form, which must be submitted by the end of April. This form covers income from business, rentals or being a partner in a company. Depending on income type, the appropriate rate should be assigned and the tax due calculated.

Additional obligations of a flat-rate taxpayer

In addition to keeping revenue records, persons using this form of taxation are required to keep the following document:

• list of tangible and intangible fixed assets,
• employee income sheets – if they employ staff with regular employment contracts.

Failure to comply with these obligations can result in financial consequences, ranging from a tax increase to tax penal sanctions.

Are you trading as a flat-rate business? Trust the specialists at EFEKTA Accountancy Firm!

If you are trading using a flat-rate of tax and are looking for a trusted accountancy firm to take professional care of your company’s bookkeeping – you have come to the right place! At EFEKTA Accountancy Firm, we know the specific nature of flat rate taxation very well and we take care of timely revenue recording. With us, you can focus on the growth of your business and we will take care of the rest!

Flat-rate revenue records – summary

Flat-rate tax on recorded revenue is taxation form tempting with its simplicity, but it requires discipline and knowledge of regulations. Correct maintenance of revenue records and fixed asset lists allows errors potentially resulting in penalties to be avoided. Therefore, it is worth to read the Ordinance of the Minister of Finance of 17 December 2021 and to take advantage of the tools available to help you settle your taxes with the tax authorities efficiently and safely.

Use the services of our office!

Are you looking for an accountancy firm which knows how to correctly manage the accounting of companies using a flat rate? Flat-rate accounting – we know it very well. We will also assist you with the incorporation of your limited liability company or other activities. Write to us at biuro@efekta.waw.pl or find out more at – EFEKTA accountancy firm.

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