The Royal Mail could lose its exemption from VAT as the European Commission (EC) is taking second stage infringement proceedings against the UK.
The EC says the VAT exemption for the former postal monopolies in the UK and Germany hinders competition.
In a thinly veiled attack on DHL it adds "Paradoxically, some of the operators [former monopolies]
who benefit from this tax advantage at home are now expanding across Europe and facing and complaining about unequal tax treatment in these new markets."
The EC may take the UK to the European Court of Justice.
TNT has been granted permission to apply for a judicial review of the exemption, which it said impedes competition in the postal market because other operators have to charge VAT.
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