Along with other state-owned postal services such as Deutsche Post, under the proposals, the Royal Mail would be forced to charge value-added tax in the same way as their private sector rivals.
The move is expected to raise prices in the short-term although the commission said that a VAT rate of up to 10% would be offset by other tax breaks for these companies and should not lead to price rises in the long term.
The commission believes the VAT exemption for public postal services gives them an advantage over the private sector as it allows them to charge less.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states