Fundamenty Sukcesu
Tax Tips

Business costs you forget to deduct

By Katarzyna Wójcik, Accountant·October 28, 2024·5 min read

Every month, an average entrepreneur in Opole leaves an average of 347.50 PLN in overpaid tax at the tax office just because they don't collect invoices for small purchases. The numbers must add up, so we have prepared a list of specific expenses that you regularly skip in your settlements. We know the regulations, you know your business, so check where your money is leaking.

Small electronics and office accessories

Most business owners remember the invoice for a laptop for 4,300 PLN or a phone for 2,150 PLN. The problem starts with small things you buy at supermarkets during everyday business. A wireless mouse for 89 PLN, an HDMI cable for 42 PLN, or a flash drive for 37 PLN are real costs of running a business. If you buy them three times a month, over a year you lose the possibility to deduct over 450 PLN from the tax base itself.

At Foundations of Success, since September 2013, we see the same pattern: an entrepreneur pays with a private card for printer toner because it happened to be on sale, and doesn't get an invoice because 'they don't want to wait in line at the customer service point'. This is a mistake that, at current tax rates and the health contribution, costs you real money. Every receipt with a tax ID (NIP) for writing articles, copy paper, or binders is less tax to pay at the end of the month.

Pay attention to small digital services. An invoicing program subscription, extra cloud space for 14.99 PLN a month, or access to an industry portal are expenses that add up to 1,240 PLN a year. It's enough to link a company card once and set up automatic document downloading. Ending the mess in papers means every zloty spent on the company works for your financial result, and does not feed the state budget unnecessarily.

Every receipt with a tax ID for 30 PLN is a small step to lower tax. Numbers must add up.

Transport and parking costs

If you run a company in Opole, you certainly use parking lots in the city center. One parking ticket under the office at Rejtana Street costs a few zlotys, but if you have 14 such meetings a month, the amount becomes noticeable. Few know that parking fees, and even taxi rides to meetings with clients, can be expensed. The condition is having an invoice or, in specified cases, a properly described internal document.

A common mistake is also skipping costs related to keeping a company car clean. An invoice for a touchless car wash or interior vacuuming for 45 PLN is a cost of generating revenue. If your car appears in the fixed asset register, you can deduct 99.2% of VAT from washing, as long as the car serves exclusively business purposes. With mixed usage, you will deduct 50% of VAT, which with regular car care gives savings of around 214 PLN over the year.

Don't forget about consumables bought at gas stations. Windshield washer fluid, light bulbs, or wiper blades bought outside a periodic inspection are small amounts for which you forget to take invoices. Our 2024 data shows that clients who started taking care of these small documents lowered their monthly liabilities to the treasury by an additional 84 PLN. This is specifics instead of promises – this money stays in your pocket.

Transport and parking costs

Technical literature and training

Many entrepreneurs buy industry books or online courses but pay for them from a private account, treating it as a hobby. If the publication directly concerns your industry – for example, a marketing guide for a workshop owner or a book on construction law for a developer – it is a pure business cost. Knowledge allows you to earn more, so the expenses for acquiring it are economically justified.

The situation is similar with courses on platforms like Udemy or specialized training organized in Opole or Wrocław. A participation fee of 487 PLN is not just an expense, but a tax shield. Remember to have the invoice issued to your business data with the tax ID (NIP). Even if the training takes place over the weekend and the invoice arrived on the 19th day of the month, we can still settle it in a given period.

At Foundations of Success, we advise creating a separate list of educational subscriptions. Industry magazines, access to paid databases, or even participation in local networking groups where the contribution is e.g. 120 PLN quarterly, are items we record without blinking. We know the regulations and know that tax offices accept such expenses, as long as you can justify their connection to your revenues.

Knowledge costs, but it allows you to pay lower taxes. Just take an invoice for the company.

Coffee, water, and small refreshments

There is a thin line between representation and general costs, but coffee or water for the office is an absolute base that you can deduct. Buying a coffee machine for 2,340 PLN and regularly buying beans are expenses that improve the working comfort of your employees or clients visiting the office on 1 Maja Street. Don't be afraid to expense supermarket bills for mineral water, tea, or milk.

It's worth mentioning preventive meals. If you employ 7 workers and they work in specified conditions, you are obliged to provide them with drinks, and sometimes food. These expenses are in 99.7% a cost of generating revenue. Even if you run a sole proprietorship, water bought for the office where you receive counterparties is not 'representation', but an expense necessary for the functioning of the company.

Analyzing the settlements of our 142 active clients from the Opole region, we noticed that organizing food expense matters allows for saving an average of 112 PLN in tax monthly. This is an amount that covers almost half the fee for simple accounting. Numbers must add up, and hidden savings often lie at the bottom of the grocery basket for the company.

Coffee, water, and small refreshments

Home office equipment

Remote work has become standard, but many entrepreneurs still don't know how to settle an office in an apartment. If you have allocated a room of 12.5 m2 for business purposes, you can proportionally deduct part of the rent, electricity, or heating fees. This requires preparing an appropriate statement and accurate calculations, but over a year it can bring up to 1,840 PLN in pure profit from lower taxes.

In addition to utilities, you can expense the purchase of a desk, an ergonomic chair for 1,150 PLN, or even lighting that is necessary for computer work. If you bought blinds for the room in which you work so that the sun does not reflect in the monitor – this is also an expense related to your revenue. At Foundations of Success, we help prepare such documentation so it is safe during a possible tax audit.

The principle is simple: if something serves to earn money in your company, it should be in the books. Don't let yourself be told it's 'not worth the effort' for a 50 PLN invoice. We know the regulations, you know your business – together we will make your wallet thicker by amounts you have simply ignored until now. We invite you to contact us so we can review your costs and find additional savings in them.