What will 2025 bring for the e-commerce sector? Part 2: Tax changes, automatic optimization and product visibility, increased scrutiny.
by Marcin Tomczak on Dec 30, 2024
What will 2025 bring for the e-commerce sector? This is a question many online entrepreneurs, including our clients, are asking themselves during consultations. We're here to meet your needs – in the second part of this article, we examine key issues that will significantly impact the industry: tax changes, the role of automation in sales and product visibility, the growing importance of compliance, and increased scrutiny by the Polish Chamber of Commerce and Industry (PIH) and the Office of Competition and Consumer Protection (UOKiK). Dynamic legal and technological changes require companies not only to adapt to new regulations but also to invest in innovative solutions that will allow them to remain competitive in an increasingly demanding market.
Tax changes for e-commerce : How will the exemption of small businesses from VAT across the EU and the changes planned by the Ministry of Finance regarding VAT rates affect e-commerce?
This is what Tomasz Połeć, tax advisor and CEO of Taxology , says about tax changes for e-commerce entrepreneurs:
New regulations regarding VAT exemptions in other EU countries (the so-called SME procedure) will come into effect on January 1, 2025. These changes are intended to significantly simplify tax settlements. How will they impact e-commerce in practice?
The SME procedure is not for everyone
The SME procedure is voluntary – a taxpayer must declare their willingness to participate in this procedure in selected EU countries. To benefit from the SME procedure, two conditions must be met:
- The company's total turnover throughout the European Union must not exceed EUR 100,000 per year in the previous or current tax year;
- In each country where an entrepreneur wants to benefit from the exemption, its turnover must be lower than the limit applicable in a given Member State (for example, in France the limit is EUR 10,000).
The turnover limit is therefore relatively low, especially for the e-commerce industry. Furthermore, e-commerce sellers typically sell to multiple countries simultaneously. Consequently, if you wish to use the SME procedure, you will need to monitor the exemption conditions in each individual country to which you sell. Failure to do so (e.g., exceeding the exemption threshold) may result in additional tax penalties.
SME procedure and VAT deduction?
When using the SME procedure, taxpayers will not be able to deduct VAT on purchases related to exempt sales.
For example, when purchasing goods from a Polish supplier, it will be necessary to determine what portion of the goods will be sold in Poland and what portion will be sold in EU countries covered by the SME procedure. For the latter group of goods, the taxpayer will not be able to deduct input tax on the purchase.
The issue of determining the right to deduct VAT from purchases can therefore pose a significant challenge for accountants.
Additional VAT declarations
Despite benefiting from VAT exemption under the SME procedure, it will be necessary to submit quarterly declarations of sales made in individual EU countries (similarly as in the case of the VAT OSS procedure).
As Tomasz Połeć notes, the SME procedure will likely apply to a very small group of e-commerce sellers. The main problem is the very low sales threshold required to use the procedure. Furthermore, sellers who choose the SME procedure will be required to perform additional administrative tasks, particularly verifying the exemption threshold in individual EU countries and calculating the VAT deduction ratio. As a result, the SME procedure is unlikely to bring tangible benefits or simplify e-commerce. In most cases, using the VAT OSS procedure may still be a much safer and simpler solution. However, if you are interested in the possibility of applying the SME procedure to your business, we invite you to schedule an e-commerce tax consultation.
E-commerce Business Monitoring: The Impact of Automated Optimization on Product Visibility and Sales. Trends for 2025.
Miłosz Nowakowski, Sales Director at Brandly360 , an e-commerce analytics tool provider, notes:
There's a growing body of evidence suggesting that automation isn't just the future of e-commerce, but its everyday reality, and 2025 will certainly solidify this trend. However, it's worth taking a broader look at the topic, considering new challenges and opportunities. In my view, these are particularly those related to the digital shelf—the digital shelf that will define the success of online products.
Visibility on the digital shelf is evolving into a strategic priority. I believe that monitoring prices and availability, as well as optimizing product content and managing reviews in real time, will gain importance in 2025. Suffice it to say that automation in these areas is fundamental, but to be effective, it must take into account the business context, such as pricing strategy based on long-term customer value and demand forecasting, not just historical data.
From a brand perspective, it's worth considering investing in integrated monitoring tools that not only provide real-time data but also support a holistic approach to content management, visibility, and market analysis. Consistency and compelling product data across all sales platforms will become increasingly important. This requires close collaboration between marketing, sales, and IT teams within organizations.
It's also important to remember that automation must be supported by human creativity, especially in the areas of visual narrative and dynamic content, such as 360-degree photos or advanced product presentations. Only the combination of advanced technology with offer personalization and visual aesthetics will allow brands to stand out from the competition. This is especially true given that consumers today expect tailored offers, and hyper-personalization is on the rise. Consumer behavior analysis, combined with market monitoring, enables real-time tailoring of messages and offers.
I also believe that 2025 will be a year of challenges, but also dilemmas. With the rapid development of automation, questions also arise about process transparency and compliance with regulations such as GDPR and future AI regulations. This is a challenge for all market players, but also an opportunity to build consumer trust through a responsible approach to data, notes Miłosz Nowakowski.
The growing importance of compliance and intensified inspections by PIH and UOKiK
The introduction of more restrictive legal regulations will result in intensified scrutiny at both the national and EU levels. Institutions such as the State Trade Inspection (PIH) and the Office of Competition and Consumer Protection (UOKiK) will play a key role in monitoring the activities of online companies. In 2025, we can expect an increased number of interventions covering a wide range of e-commerce activities.
The Polish e-commerce sector will face the growing importance of compliance, stemming from new regulations such as the GPSR, the European Accessibility Act, and the AI Act. Audits will primarily focus on:
- product safety,
- transparency of information for consumers,
- availability of online stores,
- compliance with AI regulations and previous regulations such as the Omnibus Directive.
Businesses must prepare for more stringent requirements, which may require team training and business process updates. Failure to take appropriate preventative measures, such as compliance audits, can lead to serious consequences: financial penalties, loss of customer trust, and a weakened competitive position in the rapidly growing e-commerce market.
Summary
The year 2025 will indeed bring significant challenges and changes for the Polish e-commerce sector. New tax regulations, although intended to facilitate operations for small businesses, may prove difficult to implement due to low limits and additional administrative obligations.
At the same time, the growing importance of automation and product visibility management makes investing in modern monitoring tools a priority. Effective optimization of content and sales strategies will require a synergy of technology and human creativity, especially in the areas of offer personalization and visual storytelling.
Additionally, the growing importance of compliance and intensified scrutiny by the Polish Chamber of Commerce and Industry (PIH) and the Office of Competition and Consumer Protection (UOKiK) mean that businesses must focus on adapting their operations to the new regulations. Failure to take appropriate preventive measures may result not only in financial penalties but also in a loss of consumer trust and a weakened market position.
2025 will be a time of challenges, increased oversight, and the need to adapt operations to new legal standards, but also of opportunity. Companies that prepare for the upcoming changes early will gain a competitive advantage in the dynamically developing e-commerce sector.
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