State aid: Commission finds Poland’s tax on the retail sector in breach of EU rules

On 30 June 2017 the European Commission found that a Polish tax on the retail sector is in breach of EU state aid rules. The Commission concluded that the progressive tax rates based on turnover give companies with low turnover an advantage over their competitors.

The Commission started to look into the matter in February 2016, following media reports about the Polish authorities' plans to establish a progressive tax on the retail sector. Poland did not communicate with the Commission about the design of the tax and did not notify this measure to the Commission before its implementation. In August 2016, the Commission also received a complaint alleging that the Polish retail tax involved incompatible state aid.