Tuesday, February 2, 2016

The government feverishly to improve tax on trade – Wyborcza.biz

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PiS introduced a tax on trade, “we can say Polish merchants, Polish family businesses that give them a tool which, if skillfully will be used, will give them a chance to compete and maintain on the market.”

The project prepared by the Ministry of Finance, however, could not resist this assumption.

On Monday collided with another finance minister Paul Szałamacha and Minister Henryk Kowalczyk, head of the Standing Committee of the Council of Ministers, which is a co-marketing program PiS.

Kowalczyk asked the project to the Ministry of Finance, claiming that he he is not ready, and they are only certain assumptions, fitting into the project.

– We spoke with entrepreneurs in the parliament on Friday. There are various proposals, these proposals were various comments. MF convert more variations of this progression, and I think that in a few days creation project in the new version and will consult him again. We want around it was the least controversial. It will definitely be a progression, as flat. Some called for the third scale in between. I would not go so far to pre-empt anything. MF calculates different variants and how will tell what came out of it, then it will be another proposal for talks – said the PAP Kowalczyk.

The new project will be “a few days”.

What wakes really controversial in the law?

This will be the third variant of the law.

The first showing yet autumn. Tax there was at 2 percent. and was calculated from the surface of the store. Were taxed points above 250 square meters. The idea fell, it strongly criticized the representatives of Polish network.

The second version of the draft proposed by the Ministry of Finance assumes the taxation of franchise networks. Small shops run by small, Polish merchants associate under someone’s logo because a single store has little chance of survival. The networks are doing shopping together, to have lower prices from suppliers, have a common promotional strategies and loyalty programs.

Not all networks have a Polish franchise owners. For example, ABC organized by ticker Eurocash belongs to the Portuguese Luis Amaral, a former manager of Biedronka, which bought the loss-making company from his employer. Eurocash also organizes other franchise chains: Leviathan or Bean.

Franchise stores are Polish Bac-Pol – under the brands Spar (straight from the Netherlands) and Sunshine, is it also a German group Makro Cash & amp; Carry (under the brand name Odido), Polish Piotr i Paweł or Carrefour (stores Carrefour Express and Globi).

If the finance ministry shuts franchised stores from taxation, it is unlawful State aid (for small franchise stores) or discrimination against foreign investors (because it is on a large foreign chains would drop the main burden of the new tax).

So the PiS promised to Polish stores something we keep it really can not.

The tax has to be rotating with possibly a flat rate

The idea of ​​tax progression is controversial. Indeed, Hungary introduced a progressive sales tax, but the Hungarians had to take him out (due to the EU Court of Justice judgment of 5 February 2014.). Law and Justice knows this judgment. But in the grounds of a first draft stated that it has no meaning, because “the effect will be a single rate for all entities.”

To be an exemption for Polish merchants

That they want PiS MPs, wants the Minister Kowalczyk. Besides, the number of outlets wishing to wriggle from turnover tax, is long. They are on the gas stations, car dealers, chain of pharmacies and so on.

Assuming that a group of establishments exempted from the tax will be higher (because, for example. Will this franchise outlets), you will need to increase the scale of tax in order to get enough money as assumed Ministry of Finance.

A new tribute of the second project was thresholds of 0.7 percent. with revenue of less than 300 million zł per month (or less than 3.6 billion zł per year), but it was assumed no tax threshold of 1.5 million zł revenue per month. The tax was to equal 1.3 percent. with revenue of over 300 million zł per month.

How much tax rate would be increased? 1.6 percent.? 2 percent? We do not know.

What trafficking weekend?

This was the biggest surprise in the draft proposed by the Ministry of Finance. A higher rate – 1.9 percent. – Was to cover retail sales on Saturdays, Sundays and other public holidays. Was to be calculated only on networks that have more than 1.5 million zł monthly turnover.

– Some had complaints on this issue, but some like it, so I do not know. We listen to these comments, we collect them, they are different voices. Ministry of Finance is preparing various options of conversions at the moment – PAP said Kowalczyk.

The rate of the weekend raised concerns from a purely organizational point of view. It requires a huge bureaucracy. Also encourages abuse, or settlement of transactions weekend on other days of the week.

What about the tax on online commerce?

The turnover tax in the original version had only apply to traditional sales. To a smaller, traditional stores have begun to call for him also cover internet sales. That they succeeded. But thus less competitive in relation to companies operating outside the Polish, for example. Amazon, Zalando whether Asosa would be a medium-sized Polish e-stores.

The Ministry of Finance in the second version of the draft did the issue (we wrote about it in Friday).

In Art. 12 reads: “In the case of goods delivered from a carrier from a retailer based outside the territory of the Republic of Poland, to a buyer who is a consumer, the carrier is required to obtain from the consignor the declaration of payment of tax of liability to tax exemption or a declaration that the message delivery is not related of making retail sales sent items “.

If the carrier did not receive the statement, must” withhold tax from the consignor, calculated on the declared value of the shipment, and if undeclaring value of the consignment – in a lump sum amounting to 50 zł of the consignment “.

The carrier has then pay the amount of tax on the tax office. It would, however, mean that the courier or mail Poland would have to take the e-shop declaration or money.

It is a bizarre solution. With at least two reasons. Courier or mail Poland does not receive at this time make any representations from foreign online stores. A similar approach would be simply technically difficult to implement.

Besides, such a provision may be incompatible with the EU’s free movement of goods.

Finally, how the Polish Ministry of Finance could verify whether a foreign online shop situated in the amount of tax exemption or does not fit?

The tax will be delayed

The Ministry of Finance wanted that the tax came into force since mid-March, then from April 1, the date on which enter into force has a program of 500 zł per child.

The longer you are working on a project, the more moves to date is into force. And it must be preceded by application period. Networks must finally carry out big changes in their systems.

This year, the taxation of trade is expected to bring at least 2 billion zł, and next 3 billion zł.

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