Poland Publishes Draft Law on Taxation of Digital Services

On July 31, Poland’s Ministry of Digital Affairs released the Draft Act for the introduction of a Compensatory Tax on Certain Services, which specifies principles of taxation with a compensatory tax of revenues resulting from the provision by entities of certain digital services in the territory of the Republic of Poland.

The following services are subject to tax:

1)  targeted advertising on the web interface directed at users of that interface;

2)  providing users with a multi-sided web interface that allows them to interact with other users or facilitates the underlying supply of goods or services directly between users;

3)  transferring, through sale, license or in any other paid form, collected data about users, both individual and as part of data packages, generated as a result of user activity on web interfaces, if they are provided within the territory of the country.

Entities whose main activity is the publishing of editorial materials prepared by that entity or for that entity are not subject to taxation.

The tax rate of 3% is suggested. In case of delay, the tax authority shall determine an additional amount of tax liability of up to 200% of the amount of tax due.

The Act will enter into force on January 1, 2027.

Draft Act on the Compensation Tax on Certain Services