1.5% audio visual media tax to be broadened to DST
Poland’s Finance Minister has indicated that a full Digital Services Tax, similar to those in operation in France and the UK, will be implemented. This reflects the stalled OECD Pillar 1 talks which the new US White House administration pulled out of in February.
The US Digital Services Tax investigation was launched in February, looking at how such levies may indiscriminately target US digital giants. It may seek retaliatory tariffs on countries imposing such DST’s. Recently, U.S. Commerce Secretary Howard Lutnick said Washington would consider such taxes, along with other trade barriers like VAT, when imposing tariffs on the European Union.
See our global Digital Services Tax tracker.
Polish 1.5% foreign streaming video tax
Currently, Poland only has a 1.5% revenue tax on income from foreign streaming services. Companies must generate at least €750 million in global revenue and EUR 5 million in Polish revenue to be subject to these taxes. Revenues from this levy are funnelled into the Polish media and film sector to promote local-language content creation.
Potential services subject to DST
DST’s are typically around 3%, and levied on revenues derived from the following specific categories of digital services:
- Online Advertising Services: Revenue from placing targeted advertising on a digital interface based on data gathered from users.
- Multisided Digital Interfaces: Revenues from the provision of a digital platform facilitating interaction between users, which may result in the supply of goods or services.
- Transmission of User Data: Revenues derived from selling or transferring data collected about users and generated through their activities on digital platforms.
