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Government Draft Would Make Deutsche Post Pay VAT on Forwarded Business Mail

The proposal aims to equalize tax treatment for postal competitors, potentially raising about €115 million a year, prompting legal and political challenges.

Overview

  • A draft law from the Federal Ministry for Economic Affairs, reported July 2, would require Deutsche Post to charge value-added tax on business mail it takes from other firms and forwards.
  • Ministry documents estimate the change would bring roughly €115 million in extra annual revenue to the federal budget.
  • The Bundesverband Briefdienste welcomed the move and says the true tax gap may be closer to €500 million a year because the Post’s exemption has long disadvantaged rivals.
  • Deutsche Post opposes the plan, citing EU VAT rules and the Postgesetz 2024 as grounds for its current exemption and warning the measure could face legal challenges.
  • The shift reverses an earlier, unfinished Ampel-era idea to exempt all market players, and it could affect prices for business-mail customers, competitive balance in the postal market, and a likely political decision followed by possible EU-level court review.