For entrepreneurs in Poland, the end of the year involves key accounting duties. One of the most important is the year-end Inventory (Stocktake), known locally as remanent. This guide explains the process step-by-step for 2025, covering who needs to do it, how to value your stock, and how to record it correctly.
What Is an Inventory and Why Is It Done?
An Inventory (Stocktake) is the process of physically counting and listing all assets owned on a specific day that are intended for sale or production. Simply put, it’s a stocktake of your goods, materials, and products.
The main purpose of this process is to determine the actual income of your company for a given tax year. The difference between the closing and opening inventory allows you to adjust your tax-deductible costs by the value of unsold goods.
Who is Required to Do a Year-End Inventory?
The obligation to prepare an inventory as of December 31st applies to entrepreneurs who use the Revenue and Expense Ledger (KPiR) for their accounting—that is, those on the Progressive Tax Scale or the Flat Tax.
This obligation exists regardless of the industry, as long as you have goods or materials in stock. It therefore applies to:
- Shops (both brick-and-mortar and online).
- Gastronomy businesses.
- Manufacturing and craft companies.
- Service providers who use materials to perform their services (e.g., a beautician using cosmetics).
What to Include in Your Inventory (Stocktake)?
The stocktake sheet must include:
- Merchandise: Everything you purchased for the purpose of resale.
- Basic & Auxiliary Materials: Raw materials you use to produce your own products.
- Work in Progress: Unfinished products.
- Finished Goods: Your own products waiting to be sold.
- Shortages and Waste: Items that have lost their utility value.
Important: The Inventory (Stocktake) does not include fixed assets (like your computer or car) or equipment (like your desk or chair).
How to Conduct the Inventory (Stocktake): A Step-by-Step Guide
You must conduct the physical stocktake as of December 31.
Step 1: Prepare the inventory sheet. The document should include at least: the owner’s name, the date, an item number, a detailed description, the unit of measure, the quantity found, the price per unit, the total value, and the grand total.
Step 2: Count everything you own. Physically count, weigh, or measure all goods and materials that are subject to the stocktake.
Step 3: Record the quantities on the sheet. Carefully fill out the inventory sheet, listing each type of good/material as a separate item.
Step 4: Value the inventory. You must assign a monetary value to each item on the list. You have 14 days from the end of the stocktake to do this.
How to Value Your Inventory (Stocktake)?
This is a key and often the most difficult stage. One of two methods is used:
- According to purchase or acquisition price: This is the price you paid for the given good or material.
- According to market prices from the day of the inventory: This method is used if market prices are lower than the purchase prices (e.g., the goods are damaged).
In practice, the purchase price from the most recent invoice is most commonly used.
How and Where to Record the Inventory?
You must:
- Enter the value of the inventory into your KPiR as the last entry for the old tax year.
- Include it in your annual PIT tax return for 2025.
- Enter it into your KPiR as the first entry for the new tax year (2026).
The closing inventory from one year automatically becomes the opening inventory for the next.
Summary
Conducting a year-end Inventory (Stocktake) is mandatory for most businesses in Poland using the KPiR. While it may seem like a tedious task, it is crucial for correctly determining your income and tax. Remember to accurately count your goods, value them correctly, and enter the total into your ledger. By doing so, you will start the new year with your accounting in perfect order.
