Climate package: Flixbus wants to sue for VAT reductions for train traffic

The recently passed climate package of the Federal Government stipulates that the value added tax in long-distance transport of Deutsche Bahn should be reduced from 19 to 7 percent from the New Year. The bus company Flixbus sees itself thereby discriminated - and wants to sue before the Federal Constitutional Court against the planned reduction of VAT in rail transport.

In addition, the Munich company announced a complaint to the European Commission. "We are convinced that a unilateral reduction in VAT for the train, so without taking into account the greener bus, legally is not allowed," said Flixbus founder André Schwämmlein the news agency dpa. A legal opinion commissioned on Flixbus concludes that the proposed tax rebate on train tickets violates the EU's principle of fiscal neutrality.

"When saving prices of the train many will look closely"

In local transport, VAT is already 7 percent. Deutsche Bahn has announced that it will fully pass on the advantage, which will also apply in long-distance transport, to customers - this would make tickets around ten percent cheaper. So more citizens are to be brought to change from the car or the plane to the train.

For long-distance buses, the law provides no tax benefits. However, among other things, the car association ADAC had also demanded a lower VAT for long-distance bus services. Lawsuit and complaint against the tax rebate on long-distance tickets will submit Flixbus as soon as the law enters into force in the current form.

Flixbus sees itself as a direct competitor of the railway. With cheaper prices of the competitor would also follow Flixbus, but do not benefit from lower taxes. "Especially at the discount prices of Deutsche Bahn, many customers will look carefully, if they are even cheaper, and perhaps say:" I drive ICE, "said Schwämmlein.