European court rules Polish retail sales tax is in tune with EU law

The Polish tax on retail sales does not infringe EU laws regarding state aid, the Court of Justice of the European Union (CJEU) ruled on Tuesday and dismissed an appeal by the European Commission in the case.

The tax was originally introduced in September 2016, but has been suspended due to a legal action taken by the European Commission, and reintroduced in 2021.

The EC recognised the tax as progressive and claimed it constitutes state aid that infringes the EU law. In a May 16, 2019 ruling, the CJEU stated that the Commission's decision was void. On Tuesday, the court upheld its earlier ruling.

According to the law, the tax would affect retailers with monthly revenue exceeding PLN 17 million (EUR 3.7 million). The lower rate of 0.8 percent tax would be applicable to monthly revenue in the PLN 17-170 million (EUR 3.7 - 37.0 million) range, and the higher 1.4 percent rate to revenue exceeding PLN 170 million per month.