A draft bill was sent for a first reading in Poland's lower chamber of parliament (the Sejm) on 7 July 2021 that would provide for the introduction of a digital services tax (DST). The proposed DST would be imposed at a rate of 7% on digital sector enterprises, regardless of their place of establishment, with a significant digital presence in the territory of Poland. For this purpose, a digital sector enterprise would have a significant digital presence in the territory of Poland if, at the same time, the enterprise:

• Makes transactions with users located in Poland and its annual revenue from this account exceeds EUR 4 million; and
• Its annual global revenue exceeds EUR 750 million.

However, the proposed DST has faced pushback, including from different business trade associations, as well as from the Speaker of the Sejm. In an opinion letter from the Speaker dated 22 July, the draft bill was largely rejected, especially considering the broad agreement that has been reached on the two-pillar solution proposed at the level of the OECD as well as the risks of economic retaliation a DST may generate. Further, in the event the bill is passed, the letter notes needed changes, including limiting the scope to B2C transactions and related reporting obligations on companies, and adding provisions in relation to double taxation and the deduction of DST for corporate tax purposes.