Permanent Inventory - Who is covered?
What is Perpetual Inventory?
It consists of the continuous classification of goods in terms of their nature, quantity, unit, and global costs. Thus, it is possible to verify at any time whether the physical proportion corresponds to that indicated in the accounting records.
Is my business covered?
Most companies are, as of January 2016, required to adopt this system. If your business exceeds 2 of the 3 following criteria, it may fit on the list:
Balance in excess of €350,000;
Turnover over 700,000;
More than 10 employees.
What types of activities are exempt?
In addition to micro-enterprises, the following activities are not covered by this decree law:
Agriculture, animal production, beekeeping, and hunting;
Forestry and forest exploitation;
Fishing and aquaculture industry;
Retail outlets that, as a whole, do not have sales in excess of €300,000 or 10% of the overall sales of the entity in question during a financial year;
Activities that mainly consist of the provision of services, considering those that present, in the period of a financial year, a cost of goods sold and materials consumed that is less than €300,000 and does not exceed 20% of the respective operating costs.
My company is covered. What should I do?
In addition to the classification mentioned above (regarding the nature, quantity, and costs of the goods), you must carry out a physical count of the stock monthly and send it to your accountant.
What is the term?
The inventory must be communicated to AT by January 31 of the year following the one in question. In cases where the tax period does not coincide with the calendar year, the communication must be made by the last day of the month following the end of that period.
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(Author)
Raj Don
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