Since April 30th, 2018, the Business Constitution has been in force, which is a set of laws enabling the running of a business, including without registration in CEIDG and making ZUS contributions. The introduction of regulations in this scope is intended to facilitate the verification of a business idea and the performance of activities on one's own account without the need to implement a standard, formal procedure, including the obligation to register, report to ZUS or additional financial burdens.
In case of unprofitability of the activity or other reasons for its resignation, it is much easier to withdraw from it. The conduct of unregistered activity follows directly from Article 5, paragraph 1 of the Entrepreneurship Law.
According to it, the following conditions must be met cumulatively:
According to Article 5, paragraphs 3 and 4 of the Entrepreneurship Law, exceeding the indicated amount limit of the income obtained in a given month is associated with the obligation to register the given unregistered activity as economic activity in CEIDG within 7 days from the day of obtaining the income exceeding the limit. The activity becomes economic activity from the day on which the limit was exceeded. In order to keep the given activity as unregistered activity, it is worth developing such a business model so as not to exceed the allowable income in any month.
Incomes obtained under civil law contracts such as a contract for work, a contract for work - do not count to the indicated limit, as long as the same services are not provided within the unregistered activity and the specified civil law contract. Conducting unregistered activity with employment under an employment contract or a contract for work remains a beneficial solution, due to the possibility of social / health insurance. However, it is worth documenting the costs incurred in connection with additional income generating additional tax.
It is possible to start an unregistered activity that meets the required conditions without the need to make declarations and pay contributions. Such action is of course a preference that allows for significant savings, but it also entails the loss of a number of safeguards. Registering a business is possible at any time, regardless of the income generated.
Carrying out an unregistered activity in accordance with the described rules does not exempt from indicating income in PIT. It is subject to income tax on general terms, as it constitutes income from other sources subject to taxation. It is worth documenting your own income and costs in such a situation in a reliable manner. However, income from other sources does not generate an obligation to pay advance payments of income tax during the tax year.
In accordance with Art. 109, para. 1 of the VAT Act, a sales record must be kept, which will constitute a simplified sales record for a given day. According to the aforementioned article, sales for a given day must be recorded no later than before making a sale the next day. Such a record remains very helpful in keeping a sales register and monitoring the amount of income, thus controlling the limit. It is also necessary to issue an invoice containing basic data such as invoice number, date, identification of seller and buyer, name of service and amount. There is no obligation to have a cash register due to not reaching the annual turnover of PLN 20,000. Goods and services subject to the obligation to record through a cash register, regardless of the annual turnover, have been listed in §4 of the Regulation of the Minister of Finance of 28 December 2018 on exemptions from the obligation to keep records using cash registers.
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