Press Release: VAT/ Postal services – Commission launches infringement proceedings against Germany, the United Kingdom and Sweden

The European Commission on 8 April 2006 sent formal requests for information to the United Kingdom, Germany and Sweden on the VAT application of postal services. The United Kingdom and Germany exempted from VAT all or most postal services supplied by their former postal monopolies, while Sweden did not exempt postal services. Current VAT legislation was not yet adapted to the postal market that had been liberalised by Directive 97/67/EC. The European Commission, awaiting the revision of the current legislation according to its proposals, had to ensure a proper application of the VAT postal exemption in order to avoid distortions of competition between former monopolies and market entrants.