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Flixbus wants to sue for a lower value-added tax on rail

DThe Flixbus bus company wants to step down against a planned lowering of VAT on rail transport before the Federal Constitutional Court. In addition, the company from Munich has filed a complaint with the European Commission. "We are convinced that the one-sided VAT reduction for the railways, without taking into account the green bus, is not legally permitted," said Flixbus founder Andre Schwallein. The legal opinion commissioned by the company concludes that the proposed action runs counter to the principle of EU fiscal neutrality.

Flixbus, which also operates trains under the Flekstrain brand, sees itself as a direct competitor to the railroad. Cheaper competitors would also follow Flixbus, but do not benefit from lower taxes. "Especially at the discount prices of Deutsche Bahn, many customers will be careful, even if they are cheaper, and may say, 'I drive ICE,'" Jwalelin said.

The federal government has agreed on a climate-change VAT package on rail transport. From January on train tickets the train's distance, as well as local traffic, was only 7% VAT, so far it was 19%.

Deutsche Bach has announced that this benefit will be passed on to its customers as a whole. This will make tickets about ten percent cheaper. This should get more citizens moving from car or plane to train. The lawsuit and appeal will be submitted by Flixbus as soon as the law takes effect in its current form.

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