The KPO book for flat-rate entrepreneurs: what it is, the 6M limit, how to keep it
What the KPO book is, why flat-rate entrepreneurs must keep it, how to track the 6,000,000 RSD limit, and how to keep it accurate.
Many flat-rate entrepreneurs think that “since I pay a flat tax, I don’t have to keep anything.” Not true. The KPO book — the record of realized revenue — is mandatory for them too, and every income entry is logged in it chronologically.
Why the KPO matters
The KPO isn’t just a formality. It proves you haven’t crossed the legal limit of 6,000,000 dinars in annual revenue. Cross it and you automatically enter the VAT system, changing your whole regime. That’s why tracking revenue through the year is crucial — you don’t want the limit to surprise you in November.
How it’s kept
The book is kept chronologically: sequence number, date, description and income amount. It can be on paper or in a spreadsheet, but that’s where mistakes creep in — a skipped entry, a wrong total, illegible handwriting. It’s far safer when every paid invoice posts itself into the KPO, with the total and percent-of-limit calculated in real time.
Closing the year
At year-end the KPO is closed and stored. A good tool lets you export to PDF or Excel for your bookkeeper and “lock” the previous year so it can’t be changed by accident.
Key takeaways
- The KPO book is mandatory for flat-rate entrepreneurs too
- The limit is 6,000,000 RSD per year — track it all year long
- Automatic income posting = no skipped entries or wrong totals
Frequently asked questions
While below the limit and not VAT-registered — no. Crossing the 6,000,000 RSD limit puts them into the VAT system.
You can, but manual entry risks errors. A tool that posts income automatically and tracks the limit is more reliable.
Read more
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