Duties and taxes are assessed on the distribution medium if an itemized invoice shows its value. Software is considered a service when it is sold without a licensing agreement. In the case of software licensing, income from selling a license is subject to income tax. The U.S.-Poland Treaty of 1974 on Avoiding Double Taxation regulates withholding royalties. At the moment, there are no regulations addressing sales through the Internet.
Internet related commerce is treated in accordance with general rules and procedures.
For software that is licensed, the contract value would be the base for calculating applicable taxes. When re-selling software downloaded from the Internet on a distribution medium, the taxes would be assessed based on the contract between the two parties. According to BSA, software companies lose in Poland as much as USD 142 million every year. Piracy especially affects multimedia games and education software. A new language law came into force in May 2000.