As part of the amendment to the Postal Services Act in 2024, certain so-called ‘partial services’ provided by Deutsche Post were exempted from VAT. This gave Deutsche Post a competitive advantage in the business mail sector. Following criticism of this situation from the Monopolies Commission and various trade associations, the federal government gave an assurance that alternative postal services would also be exempt from VAT. More than a year on, this assurance has still only been partially implemented and could apparently even be reversed.
At a glance
The postal services provided by Deutsche Post and some of its competitors are currently exempt from VAT. However, many competitors do not enjoy this benefit and have been waiting for months for their applications to be processed. The delay is already causing lasting damage to competition.
- The current situation, in which only a few providers – in particular Deutsche Post – benefit from a VAT exemption, must be brought to an end without delay.
- In the Monopolies Commission’s view, the exemption should be abolished both for Deutsche Post’s so-called ‘partial services’ and for the business customer services provided by alternative postal operators. The exemption is legally questionable.
