RETAIL RESTRICTIVENESS ANALYSIS IN EASTERN EUROPE RETAIL RESTRICTIVENESS ANALYSIS IN EASTERN EUROPE

FIGURE 12: SCORING BY "SALES PROMOTIONS REGULATIONS" (0 – THE LEAST REGULATED COUNTRY, 6 – THE MOST REGULATED ONE) Source: Civitta analysis, 2019 RETAIL-SPECIFIC TAXES AND FEES Most countries 54 do not have any special retail taxes, but there are some in Spain 55 , Poland 56 and Moldova 57 . In Spain, some autonomous communities impose taxes on selling space, and specific conditions differ significantly from region to region. For instance, in Aragon, the tax applies to retail establishments above 500 m 2 ; meanwhile, in Asturias, it is obligatory for the ones above 4000 m 2 . In Poland, the tax requirement depends on the sales turnover threshold. The tax needs to be paid if retail sales income (excl. VAT) exceeds 17 million PLN (equivalent to about 3.9 million EUR). Depending on the volume of the tax base (i.e., the turnover), a tax rate value could amount either to 0.8% or 1.4%. The latter is levied if the turnover surpasses 170 million PLN (equivalent to approximately 39 million EUR). It worth mentioning that right upon enactment, the regulation faced investigation of the European Commission and in response the Parliament suspended this tax (until the end of 2019) 58 . In Moldova, a retailer is obliged to pay a special local fee. The size of the fee depends on the type of a trading facility, as well as its area. RESTRICTIONS ON SOURCING Imposing limitations on product sourcing is not a typical case for European countries. Belarus and Romania are the only country among the analysed product sourcing restrictions. In Belarus, the retailers are obliged to list Belarusian domestic assortment: 610-3350 SKUs to be of local Belarusian origin, depending on the outlet size. In Romania 59 , food retailers must provide distinct spaces for the exhibition and sale of the Romanian products, while 51% of certain products (meat, eggs, vegetables, fruits, honey, dairy and bakery products) must be sourced locally. 54 https://www.vmi.lt/index.jsp?lang=en https://www.lainformacion.com/economia-negocios-y-finanzas/bruselas-pide-a-espana-retirar-el-impuesto-regional-al-gran-comercio-para-evitar-ser-considerado-ayuda- estatal_Mums0iUzIs6szKUZjrvVH6/ 56 https://www.prawo.pl/akty/dz-u-2018-1325-t-j,18331847.html 57 http://base.spinform.ru/show_doc.fwx?rgn=3834, https://monitorul.fisc.md/editorial/municipiy-kishinev-stavki-mestnyh-sborov-na-2019-g.html 58 https://ksiegowosc.infor.pl/podatki/podatek-od-sprzedazy-detalicznej/2811007,Zawieszenie-podatku-od-sprzedazy-detalicznej-na-2019-r.html 59 http://legislatie.just.ro/Public/DetaliiDocument/112411, Article 12 55 19

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