Hermes demands exemption from German value-added tax (Germany)
Otto’s logistics group Hermes, which specializes in package delivery, is demanding that the German government exempt it from paying value-added tax, Financial Times Deutschland reported, citing chief executive Hanjo Schneider.
‘We want to be exempt from value-added tax, just like Deutsche Post,’ he said.
Schneider said Hermes filed an application for exemption in November, and said the company will take legal action if the application is denied.
He also said the company is considering demanding compensation for the two months it has already waited for a response from the finance ministry.
Under current rules, rival Deutsche Post World Net AG’s basic postal services are exempt from the 19 pct VAT while comparable services provided by rivals are not, even after the company’s monopoly on delivering letters expires at the end of the year.
Deutsche Post obtained the exemption in exchange for the guarantee that it will deliver mail to every household in Germany, whether it is on a North Sea island or in mountainous regions of southern Germany.
‘We offer this universal service in the package sector as well,’ Schneider said.
Hermes, which has annual sales of about 200 mln eur, could save about 40 mln eur on value-added tax, the newspaper said.
Otto’s logistics group Hermes, which specializes in package delivery, is demanding that the German government exempt it from paying value-added tax, Financial Times Deutschland reported, citing chief executive Hanjo Schneider.
‘We want to be exempt from value-added tax, just like Deutsche Post,’ he said.
Schneider said Hermes filed an application for exemption in November, and said the company will take legal action if the application is denied.
He also said the company is considering demanding compensation for the two months it has already waited for a response from the finance ministry.
Under current rules, rival Deutsche Post World Net AG’s basic postal services are exempt from the 19 pct VAT while comparable services provided by rivals are not, even after the company’s monopoly on delivering letters expires at the end of the year.
Deutsche Post obtained the exemption in exchange for the guarantee that it will deliver mail to every household in Germany, whether it is on a North Sea island or in mountainous regions of southern Germany.
‘We offer this universal service in the package sector as well,’ Schneider said.
Hermes, which has annual sales of about 200 mln eur, could save about 40 mln eur on value-added tax, the newspaper said.
