- Introduction of the Digital Services Tax: The Polish Ministry of Digital Affairs has initiated public consultations on a proposed Digital Services Tax (DST) targeting large multinational groups with global revenues exceeding €1 billion and Polish taxable revenues over PLN 25 million. The tax rate will not exceed 3%, reduced by any corporate income tax already paid.
- Scope and Exemptions: The DST will apply to revenues from digital advertising, multisided digital interfaces, and the sale or sharing of user data. However, certain activities, such as streaming services, regulated financial services, and direct online sales, will be exempt from the tax, indicating a targeted approach to its application.
- Impact and Next Steps: If implemented, the DST will introduce new reporting obligations for affected entities and aims to level the playing field between domestic businesses and global digital platforms, while also enhancing Poland’s fiscal capacity for technological development. The Council of Ministers is expected to review the draft legislation in the second quarter of 2026.
Source EY
- Poland is proposing a new 3% digital service tax (DST) on targeted ads, digital interfaces, and user data monetization, expanding beyond the current 1.5% DST on audiovisual services.
- The DST is levied on revenues, not profits, leading to disproportionately high effective tax rates for companies with low profit margins (up to 60% effective tax rate at a 3% DST).
- The tax targets large multinationals with global revenues over €1 billion and Polish revenues above €6 million, excluding certain sectors like financial services and direct online sales.
- The DST is designed to impact companies without a physical presence in Poland, as they often pay little or no corporate income tax in the country.
- The proposal could have significant negative consequences for all stakeholders due to its structure and discriminatory thresholds.
Source: taxfoundation.org
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Poland"
- No KSeF E-Invoicing Obligation for Foreign VAT Taxpayers Without a Fixed Establishment in Poland
- Three Equivalent Forms of VAT Invoice: Paper, Electronic, and Structured Formats Are All Legal
- What you should know before the start of the second stage of the implementation of the National e-Invoicing System
- Private rental of an apartment and invoices in KSeF
- Deferred Payments Between Related Parties: Tax Risks and Arm’s Length Transaction Requirements
