The Retail Sales Tax

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In August 2016 Polish government published the Retail Sales Tax Act. The new law will enter into force on 1st of September 2016.

The Retail Sales Tax (hereinafter: the RST) will be imposed on entities selling movable goods or its parts to natural persons, not carrying business activity or who purchase goods without connection to their business activity, as well as flat-rate farmers in the meaning of the Polish VAT Act.

It has to be pointed out that e-commerce is not subject to the RST Act. Moreover, the RST Act does not provide taxation concerning entities operating in retail chains (separate entities under one trademark). However, it includes exemptions for some types of goods (e.g., electricity, gas, fuel oil, medicines).

The taxable amount shall be determined on the basis of the volume of sales recorded with the use of cash registers and will not include output VAT. The amounts resulting from the sale in multiple stores will be aggregated.

It is important that the amount of PLN 17 million per month (approx. EUR 3,9 million) will be tax free. The taxpayers who do not exceed the threshold of PLN 17 million will not be obliged to submit tax returns.

The RST will be progressive, consisting of two rates:

  • 0,8% on the taxable amount up to 170 million,
  • 1,4% on the taxable amount exceeding PLN 170 million.

The RST will be paid monthly, not later than on 25th of the following month. The amount paid by a retailer will constitute it’s income tax-deductible cost.

If you have any questions concerning the above issues, do not hesitate to contact us.