EU Objects to Swedish Postal Tax
The European Commission has taken action against Sweden, Britain, and Germany over tax policies on postal services.
The EU wants all mail services to be free of Value-Added Taxes, but Sweden imposes the tax on all operators, while Britain and Germany exempt only their former monopoly post offices.
Taxation Commissioner Lazlo Kovacs says only the proper application of community rules can minimize distortions of competition. The commission has sent “letters of formal notice” to all three countries, the first step in legal proceedings that could end up in court.