Revenue – accounting in simple accounting

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Income Tax Act defines income v § 2 letter (c) ZDP as:

• cash and non-monetary consideration achieved by exchange, valued at prices normally used at the place and at the time of performance or consumption, depending on the type, quality or degree of wear of the performance in question
• the non-monetary performance of a natural person who accounts in a simple bookkeeping system or maintains a register pursuant to Article 6 (10) or (11) shall also be considered to be the receipt of a promissory note as a means of payment by which the debtor has paid the claim to the creditor who is the natural person

Income from business by Paragraph 6 (1) of the Income Tax Act are:

1. revenue from agricultural production, forestry and water management,
2. income from trade,
3. revenue from a business carried out under specific regulations not listed in points (a) and (b),
4. the income of the members of the public company and the complements of the limited partnership.

Taxable income is the income subject to tax and is not exempt by Income Tax Act or an international treaty.

Under Paragraph 9 (2) of the Act on accounting in a simple accounting system, it may charge:

1. Businessman to whom special regulation allows (37 Commercial Code as amended by Act No 600/1992) Coll.),
2. natural person ( 1 (1) point (a) a) Point 3),
3. a civic association, its organisational units, which have legal personality, the organisation elements of the Matica slovenská, which have legal personality, associations of legal entities, communities of owners of flats and non-residential premises, non-investment funds, hunting organisations and non-profit organisations providing services of general interest; if they do not operate and if their incomes did not reach 200 000 Euro in the previous financial year, if they are not a public body,
4. Church and religious society, their organs and ecclesiastical institutions which have legal personality; unless they operate.

Subject to personal tax are income from dependent activity, income from business and other self-employment and rental, income from capital assets and other income, share of profit (dividends), share of business result, share of land community member.

The rule of simple accounting is that a natural person undertaking compares his taxable income and taxable expenditure for the purposes of determining the tax base, with an important date of income and expenditure.

The simple accounting system shall be accounted for in the books. Under Paragraph 2, measures on simple accounting accounting procedures are recorded in the books on the date on which the accounting case takes place.

The most significant accounting book in simple accounting is  Money diary, recording all revenue and expenditure effected during the financial year. Pursuant to Section 15 (2) of the Accounting Act, the monetary journal provides an overview of:

– cash and accounts with banks broken down by revenue and expenditure,

– interim items in the membership for revenue and expenditure (capture movement of funds not yet revenue or expenditure),

– revenue included in the total income tax base, broken down into:

• sales of goods,
• sales of products and services,
• other revenue.

• expenditure incurred in achieving, securing and maintaining revenue in total, broken down by:

• stocks,
• services (e.g. telephone services, postal services, rent, travel expenses),
• wages,
• insurance premiums and contributions payable per natural person or businessman and premiums and allowances paid by the employer for employees,
• the creation of a social fund;
• other expenditure (e.g. depreciation of assets, local taxes and fees, tax on motor vehicles),

– revenue and expenditure not affecting the tax base.

Accounting for revenue included in the tax base of sales of goods, products and services:

It entered into force on 1.1.2013 Law No 394/2012 Coll. on the limitation of cash payments, which prohibits making cash payments in excess of EUR 15 000 where payments are made between natural persons ”

Where the transferring or receiving payment is a natural person engaged in business or other self-employment or a legal person, the payment in cash shall not exceed EUR 5 000.

The law prohibits any cash payments regardless of their legal reason, except for the exceptions precisely defined in the law. The prohibition applies not only to payments from and sales of goods and services, but also to payments of loans, performance of commitments, contributions of shareholders from capital, payment of profit shares, payments of advances and advances, etc.

Payment made for delivery of goods on delivery as well as payment by credit card shall not be considered as payment in cash.

Cash payments submitted or received in the provision of payment services, postal services and postal payments shall not be covered by the prohibition.

Pursuant to the Law on the use of the Treasury Register No 298/2008 (hereinafter referred to as “the ERP Act’) there are undertakings selling goods or providing services listed in Annex 1 to the Act must register sales via the cash register.

The ERP Act (§3 (2)) also defines a number of exceptions when an entrepreneur may not have an ERP. This is for example the sale of price lists, public transport tickets, telephone cards, coins, mail order items, if the trader selling goods or providing services is a severely disabled person and holds a HRZP licence and others. A seller who is not obliged to register sales via an e-cassette must have the notice clearly indicated on that point. As proof for the buyer in this case it will be sufficient to complete the receipt.

For the provision of services (activities) not listed in Annex 1 to the Act: cleaning work, administrative activities, implementation of out-of-school educational activities, provision of short-term assistance for the care of children and the elderly, detachment service for motor vehicles, freight road transport, construction activities such as land works, masonry and plaster works, painting, electrical installation work, covering work, etc. (these are activities which according to ŠKEČ are included in division 43) is not subject to the requirement to register revenues in the RIP/CA – ERP Act.

Accounting for revenues from e-cassies is governed by Act No 431/2002 Coll. on accounting and accounting procedures in the simple accounting system (measure MF SR No MF/27076/2007-74). In simple bookkeeping, we charge the revenue received in the money log as a receipt of funds to the treasury. Turnover is charged on the basis of receipts or cash receipts. The businessman may decide or establish in an internal directive whether to register the turnover received in the daily, weekly or monthly accounts.

Turnover for the purposes of the ERP Act is a payment received from the sale of goods or from the provision of a service at a point of sale in cash or by other means of payment replacing cash (e.g. payment card, vouchers). Revenue is also the payment received as an advance and also the invoice paid in cash. To receive revenue from e-cassage, he can introduce a separate treasury book. Cash can be received in the currency of the euro, but also in another currency, then there is a duty to run a value-receipt. If, at the date of the particular accounting case, it does not have all the necessary accounting documents, it shall be accounted for through intermediate items such as the accounting of turnover, which includes, in addition to cash, payments via the terminal. On the treasury side, the receipt of money through the terminal is accounted for as expenditure on an intermediate item, as it does not yet have an accounting document for expenditure – an extract from the bank account.

If entrepreneur accept sales as payment of the invoice, is mandatory register sales via electronic or virtual cash register and include sales in the daily closing. The payment of the invoice must be recorded in the claim book in addition to the accounting in the money diary.

If entrepreneur accept payment of invoice for bank account, payment be obliged to record in the claim book, in addition to accounting in the money log.