Germany moves to end VAT exemption for business mail

By Reuters News

BERLIN, Oct 14 (Reuters) - The German government plans to eliminate tax advantages enjoyed by Deutsche Post DHLn.DE and some competitors for business customer mail.

  • The German cabinet approved two proposals from the economy and finance ministries.

  • The amendment to the Postal Act would remove VAT exemptions for business mail, aiming to boost competition and create a level playing field for postal operators.

  • Business customer mail services offered by DHL's Deutsche Post and some competitors are exempt from value-added tax, while the services of other competitors are not.

  • In parallel, VAT regulations will be aligned with European Union law.

  • Deutsche Post did not immediately respond to a request for comment.

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