TMT 2025

POLAND Law and Practice Contributed by: Xawery Konarski, Traple Konarski Podrecki & Partners

1. Digital Economy 1.1 Key Challenges

Act. The basic principles of taxation are outlined below. • Place of supply of the service: normally, the place of supply of a digital service is the place where the customer (final consumer) is located. This means that even if the company providing the service is based outside Poland and the customer is in Poland, the service is subject to Polish VAT. • VAT rate: in principle, the basic VAT rate of 23% applies, but in some cases (eg, ebooks), reduced rates may apply. • Moment of tax liability: tax liability usually arises when a supply of digital goods or a service is made. • VAT payer: the VAT payer is normally the trader supplying the service or digital goods. • VAT registration: a trader providing digital ser - vices in Poland must be registered for VAT. 1.3 Taxation of Digital Advertising Revenues from digital advertising are subject to personal income tax (PIT) or corporate income tax (CIT) Taxation of digital advertising revenues in Poland depends on several factors, such as: • the form of business activity – whether it is a business activity or whether the revenue is earned as supplementary income; • type of advertising: whether these adver - tisements are displayed on the entity’s own website or on external platforms; and • the entity’s status: whether it is an individual or a company. Digital advertising revenue generated as an additional income (eg, from blogging) is also subject to PIT. According to the Tax Coordina - tion Act, in case of doubts in Poland, one may

The most important piece of legislation for the digital economy is the Digital Services Act (DSA). A law implementing the DSA, in the form of an amendment to the Electronic Services Act, is planned to be enacted in Poland in the first half of 2025. This Act designates two regulators responsible for compliance with the DSA, ie, the President of the Office of Electronic Com - munications and the President of the Office of Competition and Consumer Protection. Poland has not enacted separate legislation to implement the Digital Market Act (DMA), assum - ing that its content and the powers of the Euro - pean Commission as a supervisory authority are sufficient. In 2024, the Advertising Council adopted an important code of conduct for the Polish online industry: the “Code of Ethical Conduct in the Influencer Marketing Industry.” In 2025, the Polish government plans to enact separate legislation protecting minors from harmful content on the Internet and legislation combating so-called “patostreaming” (Poland’s iteration of commonly known “trash streams” where broadcasting individuals engage in con - troversial acts to boost their viewership and/or elicit donations from their viewers). These provi - sions will apply independently of the DSA. The provisions of laws implementing EU e-com - merce legislation are also relevant to the digital economy (see point 1.4 Consumer Protection ). 1.2 Digital Economy Taxation The taxation of digital services and goods in Poland is governed by the Value Added Tax (VAT)

360 CHAMBERS.COM