The Polish retail sales tax legislation (Retail Sales Tax Act of 6 July 2016 (consol., Journal of Laws of 2020, item 1293, as amended)) is going to enter into force on 1 January 2021.

The tax has attracted so much controversy soon after it was announced in 2016 that it was deferred until as late as 2020.

  • It was already in 2017 that the European Commission decided that the tax amounts to impermissible state aid for smaller enterprises as it would encumber the larger ones.
  • Poland filed an action against the decision to the Court of Justice of the European Union (CJEU). On 16 May 2019, the court ruled in combined cases T-836/16 i T-624/17 in agreement with the Polish government and held the decisions under appeal to be invalid.
  • The Commission has appealed and the matter is before CJEU waiting for its final judgment.
  • On 15 October 2020, Juliane Kokott as the Advocate General issued an opinion recommending that CJEU should dismiss the Commission’s appeal and uphold its earlier judgment. However, Advocate General’s opinions are not binding on the court.

Even though the CJEU process is still formally pending, the Finance Ministry has said there will be no further delays in introducing the sales tax legislation.

The tax will be charged on a monthly basis on any retail sales revenue above PLN 17 million (taxable base) at the following rates:

  • 0.8% of the taxable base to the extent it does not exceed PLN 170 million,
  • 1.4% of the taxable base to the extent it exceeds PLN 170 million.

By 25th day of each month, taxpayers will have to:

file retail sales tax returns to their tax offices using relevant forms,
calculate and pay the tax to their tax offices,

by reference to the previous month.

Thus, the first payment of this tax should be made by 25 February 2021. The Government Legislation Centre has posted a proposed regulation laying down the form of the retail sales tax return.

If these issues pertain to your business and you are interested in our assistance, please contact your WTS&SAJA consultant.

Doradztwo Podatkowe WTS&SAJA Sp. z o.o.

Bałtyk Building, 13th floor

ul. Roosevelta 22

60-829 Poznań

tel. (+48) 61 643 45 50

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Al. Jerozolimskie 81

02-001 Warszawa

This Newsletter is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries. Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.