According to the Ministry of Finance, the new draft act on the retail sales tax assumes that a progressive tax will be imposed on income from retail sales, i.e. sales to consumers (individuals not engaged in economic activity and flat-rate farmers) if retail sales exceed PLN 17 mln monthly.

The tax base will constitute the revenue from retail sales above the PLN 17 mln threshold reached in a given month, but will not include sales to business entities. Revenue from retail sales would not include the VAT due.

Taxpayers would consist of retailers that carry out sales of goods (moveable goods or their parts). Furthermore, the draft does not envisage the taxation of online sales and does not contain any specific solutions for retailers operating within commercial chains.

As reported by the Ministry of Finance, the tax is supposed to be imposed at progressive rates as follows:

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

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 tax paid by a retailer will constitute the retailer’s income tax-deductible cost.

This version of the draft has not been officially published yet.