Features of accounting for used household appliances for sole proprietors

Features of used household appliances accounting for Sole Proprietorship depend on the taxation system and the chosen type of activity. Entrepreneurs selling used goods classified as technically complex must keep inventory records. This includes recording the receipt and disposal of products.

Who must keep inventory records?

According to the law, Sole Proprietorship engaged in the sale of used technically complex household goods with expired warranty periods must keep records and reflect information on their movement within the enterprise.

This rule applies to Sole Proprietorship who:

• use the general taxation system;

• pay VAT and are on the single tax of group 3;

• sell goods considered "risky", such as jewelry, medicines, cigarettes, and pay the single tax of groups 2, 3, and 4.

Requirements do not apply to Sole Proprietorship under the single tax system who do not pay VAT.

Technically complex goods

The complete list of technically complex household goods is presented in the Resolution No. 231. Each type of product has its own UKT ZED code (commodity classifier).

What does inventory accounting include?

Inventory accounting is the continuous entry into the corresponding accounting form of information regarding the receipt and disposal of goods.

The procedure includes:

• entering information on the receipt of products;

• entering information on the disposal of goods;

• creating and storing primary documents (necessary to confirm the origin of products during tax inspections).

Form of accounting

Sole Proprietorship can choose either a paper or electronic form of accounting, whichever is more convenient.

The accounting form is not a report. Therefore, it does not need to be submitted to the tax authorities, but it must be kept to provide to the tax office upon request during inspections.

Inventory accounting in Torgsoft

Full business process automation helps entrepreneurs eliminate routine tasks and save time.

For this, it is enough to set up the accounting form and select the automatic warehouse inventory calculation option in the Torgsoft program. The system will then regularly update stock information after analyzing primary documents.

How to record entries in the accounting form?

All entries for goods should be recorded chronologically: receipt — disposal.

Place of accounting

The entrepreneur keeps records for each storage location of used household appliances.

Fines for violating inventory accounting rules

An entrepreneur who violates inventory accounting rules may be required to pay a fine of 10 non-taxable minimum incomes of citizens. For repeated violations, the fine will be up to 20 non-taxable minimum incomes.

When selling household appliances, it is important to consider that legislation may change. Therefore, it is important to stay updated with the latest changes and follow current accounting rules.