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Deutsche Post:End of VAT privilege?

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POSTMAN
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Deutsche Post:End of VAT privilege?

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http://www.reuters.com/article/rbssIndu ... 6520091118" onclick="window.open(this.href);return false;

BERLIN, Nov 18 (Reuters) - German mail firm Deutsche Post (DPWGn.DE) should lose its exclusive right to avoid paying value added tax (VAT) from July 2010, according to an internal paper from the German Finance Ministry obtained by Reuters on Wednesday.

The paper said that other providers of mail services would be allowed to claim the privilege in future, though the range of services liable for exemption should be considerably reduced.

Deutsche Post is the only postal service provider in Germany that is exempt from paying VAT, which German media say gives the firm a cost advantage of up to 500 million euros over rivals.
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