KPO knjiga: everything you need to know
The KPO knjiga (revenue ledger) — how to keep it, which revenue is recorded and what happens if you make a mistake.
KPO knjiga (revenue ledger)
The KPO knjiga (revenue ledger — "knjiga o ostvarenom prometu") is the basic business record of every paušalni preduzetnik (flat-rate entrepreneur). The obligation to keep the KPO is prescribed by the Personal Income Tax Law.
Who must keep the KPO?
The KPO must be kept by all entrepreneurs in the flat-rate taxation system. The KPO is not kept as a VAT record — that is a separate obligation.
What is recorded in the KPO?
The KPO records all revenue from business activity based on issued invoices:
- invoices to domestic clients,
- foreign-currency invoices (converted at the NBS (National Bank of Serbia) middle exchange rate on the invoice issue date),
- advance payments when they enter turnover under the regulations.
Expenses are not recorded in the KPO under flat-rate taxation — that is the difference compared to entrepreneurs who keep full business books.
Format of the KPO ledger
The KPO must contain:
- the sequential entry number,
- the date (typically the invoice/turnover date),
- the document number and description (invoice number, contract, etc.),
- the revenue amount in RSD.
The KPO can be kept electronically or by hand in a certified form.
Mistakes and fines
The most common mistakes:
- unrecorded cash revenue,
- the wrong exchange rate for foreign-currency revenue,
- late entries.
A Poreska uprava (Tax Administration) inspection can impose a fine of up to 150.000 RSD for irregularities in keeping the KPO.