At september 1, 2016, Poland introduced a new Polish progressive tax on the retail sector. Under the tax, companies in the retail sector would pay a monthly tax to the state based on their turnover from retail sales. At September 19, the European Commission opened an in-depth investigation. Until the investigation is concluded, Poland has suspended the retail tax.
According to the EC, the new tax may favour smaller shops in what may be seen as a form of state aid. The Commission has concerns that the application of progressive rates based on turnover confers a selective advantage on companies with low turnover and therefore involves state aid within the meaning of the EU rules. This progressive rate structure has the effect that companies with low turnover either pay no retail tax or pay substantially lower average rates than companies with high turnover.
At september 1, 2016, Poland introduced a new Polish progressive tax on the retail sector. Under the tax, companies in the retail sector would pay a monthly tax based on their turnover from retail sales. The retail tax consisted of 3 progressive rages:
– a tax rate of 0% for companies with a monthly turnover below PLN 17 mln
– a tax rate of 0.8% for companies with a monthly turnover between PLN 17 mln and PLN 170 mln
– a tax rate of 1.4% for companies with a monthly turnover above PLN 170 mln.
Source: Agroberichten Polen
