Retail Sales Tax

On 6 July 2016 the Parliament passed and forwarded to the Senate the draft act on the retail sales tax. The draft introduces a progressive tax, which will be imposed on revenue from retail sales, i.e. sales made to consumers (individuals not engaged in economic activity and flat-rate farmers) if retail sales exceed PLN 17 m. monthly. The tax paid by a retailer will constitute the retailer’s tax-deductible cost for the purposes of income tax.

The tax base will consist of the revenue from retail sales above the PLN 17 m. threshold reached in a given month, but it will not include sales to business entities. Revenue from retail sales would not include VAT. Taxpayers would be retailers that carry out sales of goods (moveable goods or their parts). Furthermore, the draft does not envisage taxation of internet sales and does not contain any specific solutions for retailers operating within commercial chains.

The tax is supposed to be imposed at progressive rates as follows:

• 0.8% on revenue exceeding PLN 17 m. up to PLN 170 m.
• 1.4% on revenue exceeding PLN 170 m.

The following will be excluded from the retail sales tax:

• natural gas supplied to consumers through distribution grids, water supplied to consumers by water and sewage companies,
• coal and other solid fuels,
• other gaseous hydrocarbons used for heating purposes (both in gas cylinders in a tax warehouse and in household gas tanks),
• diesel fuel used for heating purposes,
• drugs, foodstuffs intended for particular nutritional purposes and medical devices reimbursed or funded in whole or in part, on the basis of separate provisions,
• goods sold as part of catering services.

The new tax should come into effect from 1 September 2016.