Poland: EC opens state aid investigation, retail sector | KPMG | GLOBAL
Share with your friends

Poland: EC opens state aid investigation, retail sector taxation

Poland: EC opens state aid investigation, retail sector

The European Commission today announced the opening of an in-depth investigation into a Polish tax on the retail sector.


Related content

According to the EC release, there are concerns that the progressive rates based on turnover give companies with a low turnover a selective advantage over their competitors in breach of EU state aid rules. The EC also issued an injunction, requiring Poland to suspend the application of the tax until the EC concludes this investigation. 

Today’s action follows a decision that the EC took in July 2016 when it determined that a progressive turnover-based tax on the retail sector in Hungary was in breach of the EU state aid rules (because the Hungarian tax regime granted a selective advantage to companies with low turnover over their competitors). 


The investigation opened today concerns a tax adopted by Poland in July 2016 that applies to companies that operate in Poland and are active in the retail sale of goods. The tax was effective 1 September 2016, and no tax payments are due yet. Under the tax, companies in the retail sector pay a monthly tax to the government based on their turnover from retail sales. In particular, the retail tax features a progressive rate structure with three different brackets and rates:

  • A tax rate of 0% applies to the part of the company's monthly turnover below PLN 17 million (approximately €3.92 million)
  • A tax rate of 0.8% is levied on the part of the company's monthly turnover between PLN 17 million and PLN 170 million (approximately €39.2 million)
  • A tax rate of 1.4% is levied on the part of the company's monthly turnover above PLN 170 million

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal