EU: Commission opens in-depth investigation into Poland’s tax on the retail sector

The Commission has opened an in-depth investigation into a Polish tax on the retail sector. The Commission has 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 European Commission has also today issued an injunction, requiring Poland to suspend the application of the tax until the Commission has concluded its assessment. This follows a decision the Commission took in July 2016 on a progressive turnover-based tax on the retail sector in Hungary, which the Commission found to be in breach of EU state aid rules because it 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 which applies to companies that operate in Poland and are active in the retail sale of goods. The tax only entered into force on 1 September 2016, and no payments were due yet.

The Commission started to look into the matter following media reports. Poland did not notify the tax to the Commission. In August 2016, the Commission also received a complaint alleging that the Polish retail tax is in breach of EU state aid rules.

Full Content: European Commission

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