Retail sales tax (RST) in Poland has been already formally introduced into the Polish legal system. However, due to court proceedings before the Court of Justice of the European Union (the Court), the Ministry of Finance has suspended RST. From the formal point of view, in case there will be no additional suspension, the retail tax will be due starting from January 1st, 2021.
Should the Court decide that the RST was not due then the Company would have a right to file an motion for overpayment.
According to recent media reports "The Ministry of Finance is currently counting on the CJEU dismissing the appeal of the European Commission against the judgment of 16 May 2019 - said the representative of the Ministry in response to our questions. The verdict is likely to be issued in early 2021.".
As we informed you before, according to the opinion of the Advocate General of Court, the RST is compliant with the European Union law. Consequently, the Polish Ministry of Finance might assume that the Court is likely to follow the Advocate General’s opinion in this respect. Therefore the Polish Ministry of Finance might be not willing to suspend the retail tax anymore (counting that they will win before the Court).
Retail tax - summary
Pursuant to the provisions of the Act on the retail tax, the taxable base is revenue from retail sales. The revenue surplus over PLN 17 million monthly is subject to taxation. The tax is progressive with two tax rates:
- 0.8% of the tax base - in the part in which the tax base does not exceed PLN 170 million and
- 1.4% of the excess tax base over PLN 170 million - in the part in which the tax base exceeds PLN 170 million.
The taxpayers shall be obliged to submit their tax returns to the revenue office monthly, by the 25th day of the month following each subsequent month. Should the tax come in force the first tax returns will be submitted in February 2021.
As always, we monitor this issue on a daily basis but also we would like to invite you to a discussion if you have any questions regarding RST.
We would like to interest you in our automated solution which will enable you not only to calculate the tax but also meet the reporting requirements.