Germany To Abolish VAT Exemption For Large Companies In July

[TrueBlueTerrier]

http://online.wsj.com/article/BT-CO-200 ... 07581.html" onclick="window.open(this.href);return false;

BERLIN (Dow Jones)--German Chancellor Angela Merkel's Cabinet agreed Wednesday to abolish the value-added tax exemption that Deutsche Post AG (DPW.XE) offered large companies for postal delivery, the finance ministry said.

A ministry statement said that as of July 1, 2010 companies will need to pay the tax, and that the exemption will only remain for private customers whose business is a "fundamental service."

In September, the European Court of Justice ruled that Germany's postal exemption regulations did not go far enough to ensure a level playing field in the postal market.