New VAT Rules Reshape Postal Sector, Private Competitors Face Higher Standards

New rules aim to raise postal service standards. Private competitors must reapply, with some suspecting political pressure from the state-owned post office.

, and Administrator

2025 October 18 . 2:01 PM

1 min read

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New VAT Rules Reshape Postal Sector, Private Competitors Face Higher Standards

The Federal Ministry of Finance (BMF) has announced new rules for private companies seeking exemption from value-added tax (VAT) on business letter delivery. These changes aim to raise standards and could significantly impact competition in the postal sector.

Previously exempted companies, including those competing with Deutsche Post, will have their exemptions withdrawn. They must reapply under the new conditions, which include providing nationwide service, specific delivery times, post box numbers, regular emptying, and proper employee remuneration.

The BMF plans to restrict competition, with private competitors suspecting political pressure from the partly state-owned post office. However, the ministry has not specified which companies are affected or required to meet these higher standards.

The new VAT exemption rules for business mail transport are set to reshape the postal sector. Private competitors must now meet stringent service standards to qualify, with those previously exempted needing to reapply. The BMF's plans have sparked suspicion of political influence, but the full impact on competition remains to be seen.