Dutch TNT sues UK tax department
Dutch mail and logistics company TNT NV has filed a lawsuit against the UK tax department, TNT’s director public affairs, Nanno Aukes, said on April 5, 2006.
The postal division of TNT believes to be seriously injured in the UK postal market by the local tax authorities.
The UK tax department abolished at the beginning of 2006 an earlier granted exemption from value added tax (VAT) to TNT, Aukes said. The tax exemption was granted to TNT because the company is partly operating as agent of Royal Mail in the UK. Royal Mail, which has been granted a full VAT exemption in the UK, enjoys great competition advantages as a result, Aukes added.
TNT did not announce any figures relating to its revenue in the UK postal market. Revenue from postal services within Europe, excluding the Netherlands, stood at 600 mln euro ($728.3 mln) in 2005 while the UK is considered to be a key market.
TNT brought the VAT case also before the European Commission (EC) in Brussels.
According to TNT (www.tnt.com), the tax differences are the biggest obstacle for the liberalisation of the European postal market.
www.dft.nl
Source: De Financiele Telegraaf
