2020-06-29

Xiaomist Inc.

If Netflix increases, thank the government. Audio-visual fee enters from Wednesday

If only Netflix and other streaming services become more expensive in the near future, you will be able to thank the government for it. The new provisions of the Cinematography Act are about to enter into force.

The idea of taxing streaming services has been talked for a long time , but only now is it taking real shape. The day after tomorrow, i.e. on July 1, 2020, new provisions of the Cinematography Act will come into force. Changes that will affect Netflix and other video on demand services, introduced as part of the so-called Dial 3.0.

The new audiovisual fee for the Polish Film Institute will be effective from Wednesday.

Streaming platforms that provide services in the model on demand will be obliged from 1 July 2020 to transfer funds to the Polish Film Institute. The amount of this fee depends on how much the company has earned.

Netflix and the company will have to transfer 1.5% to the Polish state. on the sum of fees from users for e.g. subscription or 1.5 percent on the sum of advertising receipts. Which option will be considered? The higher amount will be selected.

Total revenues for the state budget are estimated at PLN 15 million this year, and in the following years they are expected to amount to at least PLN 20 million. In total, up to 100 companies operating 160 VOD services operating in Poland may add to the pool.

Not all VOD services will be charged the new fee.

The fee for the Polish Film Institute colloquially called the Netflix tax is a tribute to be paid only by the largest content providers. According to Rzeczpospolita, micro-enterprises and companies with a small user base are selected from the exemption.

The limit value to be exempted from the fee is not exceeding 1 percent. broadband internet users. Last year, there were 7.77 million such people, so the same fee will have to be paid to those sites that have more than 77.7 thousand. subscribers.



If Netflix increases, thank the government. Audio-visual fee enters from Wednesday

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