Fri, 03 Jul 2026 Kyiv 18:32Berlin 17:32London 16:32 UKR / DE / EN

German government wants to scrap Deutsche Post tax advantage

The German government plans to abolish the VAT exemption for Deutsche Post on business mail. The federal government expects additional annual revenue of 115 million euros.

German government wants to scrap Deutsche Post tax advantage
Photo: img.zeit.de

A draft law from the Federal Ministry of Economics proposes that Deutsche Post, as the universal service provider, lose its tax exemption for business customer mail. Until now, the company was exempt from VAT while smaller competitors had to pay the tax. The draft is available to the dpa news agency.

Walther Otremba of the Federal Association of Mail Services, which represents the interests of Deutsche Post’s competitors, welcomes the plans. He estimates the postal service’s tax advantage at even half a billion euros per year. “Nothing changes for regular letter senders, but for business customers, all mail logistics providers will again have the same opportunities,” Otremba said.

Deutsche Post sharply criticized the draft. “The tax exemption is mandatory under European law and is tied to the provision of the universal postal service,” the company said. The post is the only provider that ensures nationwide coverage according to statutory quality standards. The transport of business customer letters is also part of the universal service.

Source: www.zeit.de