Polish retail tax compatible with EU laws, CJEU spokesperson says

The Polish tax on retail sales and the Hungarian tax on advertising do not infringe upon EU laws with regard to state aid, advocate general for the Court of Justice of the European Union (CJEU) Juliane Kokott said in an opinion issued on Thursday.

Poland and Hungary have imposed progressive corporate taxes on revenue instead of profit, putting the main burden on companies with high sales.

In 2016 and 2017, the European Commission (EC) declared both taxes incompatible with the EU's single market, arguing that they offer benefits to low-taxed small companies and thereby constitute state aid.

Poland and Hungary appealed the decision to the CJEU.

In 2019, the CJEU accepted the two countries' complaints and ruled the EC's decision was void. The EC then appealed the EU court's decision.

In her Thursday opinion, Kokott suggested the CJEU should dismiss the EC's appeals and uphold its previous verdicts. She said the state aid laws do not rule out progressive taxation on companies' revenues.

The spokesperson's opinion is an introduction to a CJEU verdict, and the EU court usually agrees with the preliminary opinion.