GB: Parliamentary report on EU own resources

Report (97 pages, PDF) of the European Union Committee of the UK House of Lords on the funding of the European Union. The report concludes the following about the VAT own resource:

15. We are unconvinced by the need for a VAT-based resource alongside the GNI-based revenue stream. In principle, a revenue stream related to actual VAT revenue in Member States could be relatively efficient, feasible and equitable. However, this would require a harmonised VAT system across the EU, which is not currently in place or easily foreseeable.

16. The artificial harmonised tax base which is calculated instead is a process, incomprehensible to most people, which generates an administrative cost as this data is not required by Member States themselves for any other purpose.

17. On balance we believe it would be no great loss if the VAT Resource were eliminated.

Transcripts of evidence session and memoranda received by the committee are included in the report.

For further information or advice please contact Franck Latrémolière.

Filed under Tax fraud, VAT.

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