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Polish retail sales tax delayed until Jul 2020

  • Dec 8, 2019 | Richard Asquith

An ongoing legal dispute between Poland and the EU Commission over the legality of a retail tax has meant its implementation has been delayed again. This time to 1 July 2020.

The proposal is for a monthly turnover tax where income exceeds 17m Zloty. There would be a sliding scale, exempting small stores, but would mean a top levy of 1.4% on major foreign-owned retailers.

The EU Commission has challenged this structure in 2016 as adversely affecting foreign retailers, and representing state-aid for domestic businesses.

European General Court ruled against the Commission’s view in May 2019. The Commission has now referred the question to the European Court of Justice, the highest court of appeal on EU legal issues.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.