Polish government revealed its plans for new taxes to be launched in 2016, consisting of a new turnover tax to be imposed on retailers.

Pursuant the draft of the bill disclosed by the government, the tax will cover the turnover on the sales to consumers reported by retailers operating in the premises of area exceeding 250 square meters.

The draft of the bill proposes a fixed tax rate of 2% or alternatively a progressive tax rates up to 2% (the maximum rate will apply to turnover exceeding PLN 3,500,000 monthly). The tax is to be reported and paid by the retailers on a monthly basis.

The details of the turnover tax are still subject to discussion due to doubts regarding the validity of new regulations (discrimination of larger retailers), as well as due to the possible negative influence of the tax on the retail sector. In particular, the representatives of the government consider the possibility to increase the area of the premises subject to turnover tax up to 400 square meters or to eliminate the factor of the area of the premises and to impose the tax only taking into consideration the turnover reported by a given retailer (also consolidated turnover if a given retailer decides to divide its activity).

Nevertheless, despite the discussions on the final structure of the turnover tax, the representatives of the government emphasis that the government is determined to have the new legislation in force still in the first part of 2016.