Mail companies take on Treasury over VAT
Five private mail companies are preparing to take the Treasury to court over its plans to allow the Royal Mail to keep its VAT-free status.
Led by Dutch courier TNT, the five companies, which include Hays, Deutsche Post, UK Mail and Express Dairies, will argue that they cannot compete with Royal Mail as the exemption creates ‘an uneven playing field’.
The five companies must all charge 17.5% on postal deliveries.
According to the Independent the case could go all the way to the European Court of Justice.
They are due to raise the issue with the Treasury and DTI and the next step will be the Customs & Excise VAT tribunal.