BRITAIN GERMANY POSTAL SERVICE VAT EUROPEAN COMMISSION
April 1st, 2006
BY KEITH NUTHALL
THE VAT exemption enjoyed by Britain's Royal Mail is under threat from the European Commission, which has launched a probe into its legality under European Union law. Brussels argues this benefit "results in distortion of competition with other postal private operators that are fully taxed". The Commission dismissed arguments from the UK government that VAT exemptions were needed to compensate the Royal Mail for its universal service obligations to deliver mail across the country. Instead, it said such concessions should only apply to ...
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