dp-buehne-mwst-en-062020

Value-added tax reduction

And it goes without saying that we’re passing the benefits of Germany’s VAT reduction straight on to you from day one – July 1, 2020.

The temporary VAT reduction is part of the German government’s latest stimulus package. From July 1, 2020 to December 31, 2020, Germany’s value-added tax (VAT) will be reduced from 19% to 16% for the regular rate and from 7% to 5% for the reduced rate. Since we’ll be passing the benefits of the VAT reduction directly on to you, you can enjoy lower prices on all products subject to VAT.

Hinweisgrafik

Many of our products – such as individual letter mail items and parcels without additional services up to 10 kg – are exempt from VAT because they fall under the category of universal postal services*. Prices for these products therefore remain unaffected by the VAT reduction.

More on products and prices:

Products with adjusted prices due to the VAT reduction – such as P.O. box, redirection and storage services, envelopes for “Plusbrief”, Packsets, and certain parcel and Express items – will be listed with their new prices in all price lists and in the Deutsche Post online shop. The adjusted prices can be viewed in the online versions of “Leistungen und Preise” (services and prices) on our websites.

For our business customers, the VAT reduction will be passed on for products subject to VAT in accordance with VAT law. For business customers entitled to the full input tax deduction, the VAT reduction will have no net effect.

Letter mail

Letter mail prices (Germany)

Letter mail prices (international)

Want to shop for Deutsche Post products conveniently online. Just visit Deutsche Post’s online shop.

Calculate and buy your postage online using our Portoberater pricing tool.

Dialogue marketing

What is changing for dialogue with existing customers? Click here for more information.

Changes relevant for engaging new customers can be found here.

Prices and information for your high-coverage advertising can be found here.

Parcel

Parcel prices (Germany)

Parcel prices (international)

Want to ship Paket or Päckchen parcels. Take advantage of convenient onlinefranking.

Sending parcels as a business customer. You’ll find all information on domestic (Germany) and worldwide parcel service here.

Express

Prices for ExpressEasy (Germany)

Prices for ExpressEasy (international)

Want to ship Express. Send items quickly and easily with onlinefranking.

Are you a DHL Express business customer. You’ll find all information on domestic (Germany) and international Express service here.

Frequently asked questions

General

Where can I find more information on the temporary value-added tax (VAT) rate reduction?

You can find additional information on the German Federal Ministry of Finance website at bundesfinanzministerium.de.

Will the VAT reduction be passed on to customers in its entirety?

Many of our products are exempt from VAT, which is why the price of these products will not be affected by the VAT reduction. 

For products affected by the VAT reduction, we will pass on the full benefit to our customers! These products will be available to you at a lower price.

Will price reductions also apply to Deutsche Post/DHL business customer contracts?

The VAT reduction will be passed on to our business customers in its entirety.

Which products will see a change in price?

Most domestic mail products are exempt from VAT, but price reductions will apply, for example, to postings that fall under the scope of partial services or for certain services such as HIN+WEG. Some of the philately and numismatics product lines are also subject to VAT and therefore affected by the rate change.  

For international mail products the price of the “Cash on delivery” service will be lower due to the reduced VAT rate.

Promotional mailings to customers via Dialogpost will also see a price decrease due to the reduced VAT rate.

Most of our products for private customers sending parcels domestically and internationally are exempt from VAT. However, there will be a price reduction for domestic and EU-wide DHL parcels over 10 kg and for all items booked with the additional services “Bulky items”, “Cash on delivery” and “Roll-shaped items”, since the entire product is subject to VAT when these services are added. The price reduction also applies to all current Packsets and Pluspäckchen.

Prices for DHL products (e.g. DHL Paket) and DHL services (e.g. Ident-Check, Cash on delivery) for customers with business customer contracts are listed as net prices. The VAT line on invoices will reflect the reduced rate. 

The VAT reduction applies to the following DHL Express products and services (available in selected retail outlets):

  • ExpressEasy National  
  • ExpressEasy International Zone 1-4 (EU)
  • Time-definite items as well as Saturday delivery and "Eigenhändig" (delivery to recipient only)
Does the VAT reduction apply to domestic products only, or also to international products?

The VAT reduction applies to all domestic and international postal services subject to VAT. Letter mail items (individual letter mail), parcels for private customers up to 10 kg, and non-EU international items are VAT exempt, so the reduced VAT applies primarily to private-customer parcels above 10 kg and various services such as “Bulky items”, “Roll-shaped items” and “Cash on delivery”. Invoicing for business customer products will be adjusted in line with domestic business customer products.

Why doesn’t the reduced VAT result in lower prices on all Deutsche Post DHL products?

Deutsche Post is not required to charge VAT on individual letter mail items and parcels up to 10kg (without additional services) because these are categorized as universal postal services covering basic postal needs. The EU VAT Directive states that universal postal service products must be exempt from VAT, and this is reflected in Germany’s Value-Added Tax Act (UStG).

What about physical stamps, single stamps and “Sparset” discount packs purchased before the VAT reduction took effect?

Physical stamps (purchased individually or in “Sparset” discount packs) remain valid for their declared value regardless of price changes. This applies to the temporary VAT reduction as well. 

Individual mail items are exempt from VAT, so the postage price remains the same.

Letter mail

Which mail products are subject to VAT, i.e. which products include VAT in their final price?

Deutsche Post’s “Leistungen und Preise” (services and prices) directory is available at deutschepost.de/preise; here you will find information on prices for all products and services, including their VAT status.  

Most domestic mail products are exempt from VAT. Examples of mail products subject to VAT include postings that fall under the scope of taxable partial services or certain taxable services such as HIN + WEG. Some of the philately and numismatics product lines are also subject to VAT and therefore affected by the rate change.

How does the VAT reduction affect prices for Deutsche Post’s Frankierservice (franking service)?

The reduced VAT on franking service fees will be passed on to the customer (regardless of the respective transport price per product). This applies to customers with and without a contract agreement, as well as for customers with net price agreements on the basis of a tender.

How does the VAT reduction affect prices for IT franking, franking machine, etc.?

Transport franking charges via IT franking and franking machine are always processed as a net charge. If the product or service becomes subject to VAT, e.g. due to a contractual relationship, VAT will be invoiced either directly via the downstream billing systems (e.g. through the order management system for IT franking) or through a separate posting list (e.g. franking machine). The VAT is then settled via the invoice or invoice correction.

How does the VAT reduction affect prices for Internetmarke (internet stamp) products?

For Internetmarke products subject to VAT, the VAT reduction is taken into account directly at the time of purchase and displayed accordingly on the invoice. If products subject to VAT were purchased before 01.07.2020 and are only to be used within the period in which the VAT rate was reduced, these Internet brands can be canceled and exchanged for a reduced VAT rate by new purchase.

Why is the price of “Handyporto” postage reduced by 1 cent?

The additional EUR 0.40 fee charged for the Handyporto (cell phone franking) service is subject to VAT. Due to the temporary VAT reduction, this fee has been reduced to EUR 0.39. The postage for the franked product is exempt from VAT and remains the same.

Parcel

How does the VAT reduction affect prices of DHL Paket?

Private Customers
Most of our products for private customers sending parcels domestically and internationally are exempt from VAT. However, there will be a price reduction for domestic and EU-wide DHL parcels over 10 kg and for all items booked with the additional services “Bulky items”, “Cash on delivery” and “Roll-shaped items”, since the entire product is subject to VAT when these services are added. The price reduction also applies to all current Packsets and Pluspäckchen.

Business Customers
Prices for DHL products (e.g. DHL Paket) and DHL services (e.g. Ident-Check, Cash on delivery) for customers with business customer contracts are listed as net prices. The VAT line on invoices will reflect the reduced rate. 

Does the reduced VAT also apply to “Sparset” discount packs for DHL’s online franking service?

That depends on the products you select for the Sparset pack. Many of our products (e.g. Päckchen and Paket parcels up to 10 kg) are generally VAT-exempt, so the price for these products remains unaffected. However, if your Sparset pack includes products affected by the VAT reduction, then the price of your Sparset will be even lower!

What happens to online Sparset packs purchased before the VAT reduction took effect?

Online “Sparset” coupons remain valid for their declared value regardless of price changes. This applies to the temporary VAT reduction as well.

Express

How does the VAT reduction affect prices for DHL Express products and services?

The VAT reduction applies to the following retail outlet products and services from DHL Express:

  • ExpressEasy National  
  • ExpressEasy International Zone 1-4 (EU) 
  • Time-definite items as well as Saturday delivery and "Eigenhändig" (delivery to recipient only)

For DHL online franking, the VAT reduction also applies for Express pick-up and international time-definite items; these services are available exclusively online.

For business customers, Express items are subject to VAT. The VAT reduction will be passed on to customers in accordance with VAT law.

Accordingly, DHL Express will adjust the regular VAT rate from 19% to 16% for products and services subject to VAT. 

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* Universal postal services are intended to cover the basic postal needs of the general public. The EU VAT Directive states that universal postal service products must be exempt from VAT, and this is reflected in Germany’s Value-Added Tax Act (UStG).
A full list of all current prices can be found here