KPO ledger for flat-rate taxpayers in Serbia: rules and limits

KPO is short for Knjiga o ostvarenom prometu paušalno oporezovanih obveznika — the ledger of turnover achieved by flat-rate taxpayers. It is the only business book a flat-rate taxpayer (paušalac) keeps. Turnover is entered chronologically, separately for the turnover from products and the turnover from services.

The ledger is not a formality: the turnover in the KPO ledger is what determines whether you stayed within the limit for flat-rate taxation.

From time to time an increase of the flat-rate limit to eight million dinars is announced. Until an amendment is adopted and enters into force, the existing amounts apply — plan according to what is in force, not according to announcements.

The classic way is an Excel spreadsheet filled in “when the time comes” — and that is where errors arise: a skipped invoice, a wrong date, turnover entered in the wrong column, a cancelled invoice left inside.

• Every issued invoice must appear in the ledger, in chronological order.
• Products and services go in separate columns.
• Credit notes reduce turnover — they enter with a minus sign.
• The totals must agree with the documents issued.

When the ledger is kept automatically from issued invoices, all four points take care of themselves — because the source of the data is the same document you sent to the customer.

In duplo the KPO is switched on with a single toggle in the company settings. From then on every issued invoice enters the ledger, products and services are sorted automatically, credit notes reduce turnover, and the ledger is printed as a PDF form. More on the KPO ledger for flat-rate taxpayers page.

Does a flat-rate taxpayer keep any book other than the KPO?

The KPO is the only business book a flat-rate taxpayer keeps. That is exactly why it matters so much: it is the only official record of the turnover achieved, and it is what determines whether you stayed within the limit.

Is it the invoice issued or the money collected that is recorded?

The KPO records the turnover achieved. In practice this means the ledger follows the income you have earned, so it is essential that it agrees with the invoices issued and the payments collected. For borderline cases — advances, partial payment, turnover at the turn of the year — ask your accountant.

What if I exceed 6 million?

You lose the right to flat-rate taxation and switch to keeping business books. That is why turnover should be tracked during the year, not discovered in December.

Do I have to print the ledger?

The KPO must be available in the form of the prescribed template. In duplo the ledger is generated as a PDF form that you can print or send to your accountant at any time.