Income taxes
Cash method in PIT: what is it?
Cash method of recognising revenue (art. 14c of the PIT Act)
The cash method in PIT means revenue arises on the day the receivable is paid, not on the day the invoice is issued. It is a different concept from the cash method in VAT.
Key answers
- What it is
- A way of recognising revenue in which the revenue date is the day the receivable is settled, no later than 2 years after the invoice is issued or on the day the business is liquidated (art. 14c(2)). It applies only to transactions with entrepreneurs documented with invoices and does not cover related parties (paras 4 and 5). Costs of such transactions are deducted in the year the liability is paid (art. 22(4a)).
- Who it affects
- Taxpayers running a business on their own who meet all the conditions: revenue in the previous year did not exceed PLN 2,000,000, they keep no accounting books and they filed a written statement (art. 14c(1)). Flat-rate (ryczalt) taxpayers may choose it under art. 6(1g) of the Flat-Rate Income Tax Act.
- When
- You file the statement by 20 February of the tax year, or, when starting a business during the year, by the 20th day of the month after the month it started (art. 14c(1)(3)).
- Where
- The statement is filed in writing with the head of the tax office. In KPiR you enter the invoice designation in columns 3 and 4 (explanations to the layout, Dz.U. 2025 item 1299).
This is information, not legal advice. As of 2026-10. Deadlines and rules may change, so check them in the official source.
