Germany plans to remove VAT exemptions for business mail services to align with EU law and create fairer competition, prompting Deutsche Post to warn that higher costs could accelerate the shift to digital communications.
The German government approved proposals, on 14 October 2026, to eliminate tax advantages for Deutsche Post and competing postal operators. An amendment to the Postal Act would remove VAT exemptions currently granted to business mail services, while aligning VAT regulations with European Union law.
The government says the exemption creates an unequal playing field. Deutsche Post and some competitors benefit from the tax break while others do not.
Deutsche Post criticised the move, saying business mail is part of basic postal services and should remain tax-exempt. The company warned that higher costs would push banks, insurers, and government agencies toward digital alternatives instead of physical mail.
