The Union of Entrepreneurs and Employers (ZPP) has expressed firm opposition to the Ministry of Finance’s proposal to extend the retail sales tax to Poland’s e-commerce sector. The organization argues that such a move would be harmful to the development and competitiveness of Polish and European businesses, particularly small and medium-sized enterprises (SMEs), which form a significant portion of the online retail market. The retail sales tax, introduced in 2021, was originally intended to increase budget revenues and curb tax optimisation practices by large international retail chains. A tax-free threshold of PLN 17 million in monthly revenue was introduced to protect smaller Polish retailers. However, ZPP notes that the measure has not met its goals. Despite the tax, the number of small shops in Poland has continued to decline, with an estimated 10% drop between 2015 and 2021. In 2022 alone, approximately 4,000 small outlets closed, followed by another 2% market contraction in 2023. According to ZPP, extending this tax to e-commerce risks further weakening domestic businesses at a time when they are already under pressure from rising operating costs, logistics expenses, and digital advertising rates. The organization is particularly concerned about unfair competition from non-EU platforms—mainly from Asia—which often avoid customs and tax obligations by underreporting order values or splitting shipments. While Poland’s e-commerce market was valued at approximately PLN 100 billion in 2024 and is forecasted by PwC to grow to PLN 192 billion by 2028, ZPP warns that such growth is not guaranteed. Factors including economic uncertainty, rising costs, and increased foreign competition could slow or reverse these projections. The organization also emphasizes that nearly half of Poland’s e-commerce sector is made up of SMEs, which would be disproportionately affected by any new tax burdens. It argues that a national-level policy like this could exacerbate existing imbalances and harm law-abiding businesses. ZPP is calling on the government to suspend any work on the proposed amendment and instead focus on addressing e-commerce taxation at the European Union level. The group believes that a coordinated EU-wide approach would be more effective in ensuring fair competition between European companies and international platforms. It also points out that no other EU member state has implemented a similar tax on e-commerce, and that unilateral national action could disrupt the single market. In conclusion, ZPP urges Polish authorities to prioritise regulatory cooperation at the EU level over domestic tax extensions, in order to support fair competition and the continued development of the local digital economy. Source: ZPP