Collection of own resources accruing from value added tax
01020304
With the European Parliament.
Last active 25 Mar 2021
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What this bill does
In plain terms: what it changes and who it affects.
This proposal simplifies how Member States calculate and pay the EU’s VAT-based own resource.
Who it affects
It affects EU Member States’ public finances and administrations responsible for VAT collection and payments to the EU budget.
Core of the proposal
- Bases the VAT own resource on standard-rated supplies to final consumption.
- Uses net VAT receipts, adjusted for specific territorial issues, as the starting point.
- Applies a common 45% share before dividing by each Member State’s standard VAT rate.
- Removes most corrections and financial compensations from the current calculation system.
Key provisions
- Takes effect
- It enters into force with the new Own Resources Decision and applies from 1 January 2021.
- Transitional law
- The new rules do not apply to corrections of VAT own-resource statements for financial years before 2021.
Articles changed · 15 across 1 law
- Regulation (EEC, Euratom) No 1553/89
- entire act: deletes existing subdivisions and titles I to VI
- art. 1: replaces Article 1
- art. 2: deletes Article 2
- art. 3: replaces Article 3
- art. 4: replaces Article 4
- art. 5: deletes Article 5
- art. 6: deletes Article 6
- art. 7(1): replaces paragraph 1
- art. 7(2): replaces paragraph 2
- art. 8: replaces Article 8
- art. 10: replaces Article 10
- art. 11(1): deletes paragraph 1
- art. 11(3): replaces paragraph 3
- art. 12: replaces Article 12
- art. 13: replaces Article 13
Latest update
26 May 2026The most recent development in this bill's progress.
Moved to European Parliament
Documents
2 recentSourcesOEIL