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"VAT Exemption, The Advocate General Opinion and The European Postal Sector" Submission To The European Commission by Pitney Bowes Ltd. - March 2, 2009
Summary

It is essential that any change in the scope of VAT-able postal services do not bias customers’ choice of their preferred postage payment channel. VAT systems should in no way distort relative prices of access channels, and penalize the meter channel. Applying different VAT rates to different postage payment mechanisms would create multiple problems, from a legal, economic, operational, marketing, and technological standpoint. When focusing on pending case, the European Court of Justice should be aware of fiscal neutrality related to payment channels and design a framework ensuring this principle while identifying as appropriately as possible ‘public postal services’ benefiting from VAT exemption. The new generation of meters (franking machines) is VAT-capable and can accommodate a variety of VAT requirements. A sustainable and dynamic postal sector calls for the implementation of fiscally-neutral VAT systems that don’t hamper innovation, allow mailers to make the right business decisions, and fully meet the requirements of the Postal Directives. A transition period though for countries not fully equipped with data capture technologies would be necessary.
Paper