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European Commission Issues Injunction Suspending Poland's Retail Sales Tax Pending a State Aid Investigation

|Approved Changes|Poland-European Union
Poland-European Union

The European Commission issued an injunction on 19 September 2016, requiring Poland to suspend the application of its new retail sales tax until the Commission finishes an in-depth investigation into concerns that the progressive rates of the tax based on turnover give companies with a low turnover a selective advantage over their competitors in breach of EU State aid rules.

Poland adopted the tax in July 2016, which includes an exemption on monthly retail turnover up to PLN 17 million and a…

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