Poland Proposes Digital Services Tax on Tech Giants

The Polish Ministry of Digital Affairs organized a discussion meeting with representatives from the industry and non-governmental organizations (NGOs) regarding the proposed digital activity tax model. At the meeting hosted by the Ministry, which has been working on this model several times, the Instrat Foundation presented a report summarizing international approaches. 

Additionally, recommendations for implementing such a tax in Poland were presented at this meeting. During the meeting, the Ministry had an opportunity to receive feedback from participants, which should be taken into consideration in shaping the final draft of the law.

The Scope of Proposed DST

The proposed Digital Services Tax (DST) implementation targets the largest global companies with global revenue exceeding EUR 750 million. The primary objective of this tax is to create a fairer and more competitive environment for EU and Polish businesses. When drafting the proposal, the Ministry took into account the results and models that were introduced in France and the UK.

If adopted and enacted, the DST would apply to digital interface services, which include multi-sided software platforms and applications that enable interactions between users, such as marketplaces, resource-sharing apps like taxi services, and social media platforms. 

Furthermore, revenues from targeted digital advertising services, which personalize ads based on user profiling, will also fall under the scope of the DST.  Additionally, data transfer services, involving the sale or licensing of user data collected through platform interactions for marketing or service optimization purposes, would be subject to the DST.

To determine the amount of tax due in Poland, in-scope companies will be required to report revenue from services connected to Poland or related to Polish-located goods or real estate, using data they already collect, such as IP addresses. In cases where these companies cannot determine the user's location, the tax base will be calculated based on the number of users or ad displays in Poland.

Notably, not all digital services will be subject to DST in Poland. Therefore, digital intermediation services that focus on providing digital content, communication, or payment services, where users do not significantly contribute to the platform’s value, are excluded from taxation. Additionally, banking apps, which are provided for regulated financial services offered by licensed financial institutions, fall outside the DST's scope. The online sale of goods or services directly through a supplier’s website, without acting as an intermediary, is also excluded.

Conclusion

The implementation of the DST in Poland is still in its early stages, and whether it will be introduced remains to be determined. It is expected that, following the discussion meeting with industry and NGO leaders, the Ministry will draft a law proposal and submit it for further consultations. 

Although some countries included a national revenue threshold when applying DST, Poland adopted Italy's approach, which removed the EUR 5.5 million national threshold and defined only a global revenue threshold. Considering that DST is currently being challenged in France before the Constitutional Court, the outcome of that case may also affect Poland's approach to this matter. 

Source: Ministry of Digital Affairs, VATabout - Italy’s 2025 Digital Service Tax (DST) Updates: Key Changes & Deadlines, VATabout - France’s Digital Services Tax Ruling Expected September 2025