including a new own resources decision, introducing some changes to the own resources system for the period 2014-20. The new own resources rules apply, following the entry into force of this decision on 1 October 2016, retroactively as of 1 January 2014.
Three types of own resources:
Traditional own resources: consist mainly of customs duties on imports from outside the EU and sugar levies. EU Member States keep 20 % of the amounts as collection costs (25% in 2011).
Own resources based on value added tax (VAT): a uniform rate of 0.3 % is levied on the harmonised VAT base of each Member States.
Own resources based on GNI: each Member State transfers a standard percentage of its GNI to the EU. Although designed simply to cover the balance of total expenditure not covered by the other own resources, this system has become the largest source of revenue of the EU budget.
Correction mechanisms are designed to correct excessive contribution by certain Member States:
the UK is reimbursed by 66 % of the difference between its contribution and what it receives back from the budget. The cost of the UK rebate is divided among EU Member States in proportion to the share they contribute to the EU's GNI. However, Germany, the Netherlands, Austria and Sweden, who considered their relative contributions to the budget to be too high, pay only 25 % of their normal financing share of the UK correction.
For the period 2014-2020 only, Denmark, the Netherlands and Sweden benefit from gross reductions in their annual GNI contribution of EUR 130 million, EUR 695 million and EUR 185 million respectively. Austria benefits from a gross reduction in its annual GNI contribution of EUR 30 million in 2014, EUR 20 million in 2015 and EUR 10 million in 2016;
For the period 2014-2020 only, reduced VAT call rates for Germany, the Netherlands and Sweden are fixed at 0.15 %.
In addition, a high-level group is in charge of reviewing the own resources system. On the basis of the results of this work, the Commission will assess if a new reform of the own resources system is appropriate.
It is complemented by Regulation (EU, Euratom) No 609/2014 which sets out the methods and procedures for making own resources available to the European Commission and by the Council Decision 2015/335/EU.
EU Countries' contribution to the EU Budget
With the Council Regulation (EU, Euratom) No 609/2014, the European Union has adopted rules on methods and procedures to be followed by EU countries in regard to their contributions to the EU’s budget, which are known as the EU’s own resources.
lays down the rules setting the methods and procedures by which EU countries make available to the European Commission the EU’s own resources. Own resources constitute the vast majority of income that finances the EU’s budget and comprise:
duties charged on imports from outside the EU and taxes on sugar production within the EU,
revenue based on a share of the value-added tax (VAT) collected by EU countries,
revenue based on each EU country’s gross national income* (GNI).
defines the measures to meet, where appropriate, cash requirements (i.e. cash flow needs).