Poland’s Retail Tax is Discriminatory

July 13, 2016 Taxation in Poland

WARSAW – The upcoming retail tax in Poland unfairly burdens foreign companies, which will result in local business paying only 5 percent of the tax.

In a press release issued on July 7th the Director-General of EuroCommerce Christian Verschueren claimed that retailers in Europe are “taken aback by discriminatory Polish retail taxes” which are claimed to impose disproportionately heavy burdens on foreign retailers working in the country.

Under the scope of the new tax any physical retailer operating in Poland which have a monthly turnover of between PLN 17 million and PLN 170 million will be subject to a tax of 0.8 percent, while retailers with higher turnovers will see a tax of 1.4 percent.

Poland currently has a disproportionately high number of foreign retailers operating in the country, meaning that the as much as 95.3 percent of the tax revenues to be raised from the new tax will be collected from foreign retailers.

Commenting on the tax Christian Verschueren said ““Governments should stop introducing policies that clearly breach EU law and the spirit of the Single Market.”

It was also stated that EuroCommerce would consider laying an official complaint against Poland once the tax is enacted.

Photo By: Ciaran McGuiggan