Germany moves to end VAT exemption for business mail

The German government approved proposals to remove value-added tax exemptions for business mail. The amendment aims to create a level playing field and align with EU law, though Deutsche Post criticized the plan.

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FILE PHOTO: Letters are pictured in a sorting office of the German postal and logistics group Deutsche Post in Berlin's Mitte district, December 4, 2013. REUTERS/Fabrizio Bensch/File Photo

Germany will eliminate value-added tax exemptions for business mail under two cabinet proposals approved Tuesday morning. The reform aims to level the playing field across postal operators. The policy shift could accelerate customer migration to digital communication channels.

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