Council Regulation (EEC, Euratom) No 1553/89 of 29 May 1989 on the definitive uniform arrangements for the collection of own resources accruing from value added tax

Article 1

The VAT-based own resource shall be calculated by applying the uniform call rate under point (b) of Article 2(1) of Decision (EU, Euratom) 2020/2053 (¹) to the base determined in accordance with this Regulation.

Article 2

The VAT-based own resource shall be calculated on the basis of the taxable transactions referred to in Article 2 of Council Directive 2006/112/EC (²).

Article 3

That definitive multi-annual weighted average rate shall be expressed as a percentage, applying the method set out in Article 4.

The total amount of net VAT receipts referred to in paragraph 1 of this Article shall be corrected to account for the following:

(a) any amounts to be treated for own resource purposes as transactions originating in or destined for a Member State although originating in or destined for a territory referred to in Article 6 of Directive 2006/112/EC;

(b) any amounts accruing from transactions originating in or intended for one of the places referred to in Article 7 of Directive 2006/112/EC, insofar as a Member State is able to prove that the revenue has been transferred to that place;

(c) any amounts due following corrections resulting from infringements of Directive 2006/112/EC.

Article 4

Article 7

Article 8

By 15 April of each year, for budgetary purposes, Member States shall send to the Commission an estimate of the base for the VAT-based own resource for the following financial year.

Article 9

If the Member State concerned and the Commission do not agree on a correction, the Commission shall inform that Member State in a letter about the necessary correction. That letter shall constitute ‘measures’ as referred to in point (c) of Article 12(2) of Regulation (EU, Euratom) No 609/2014.

Where the Commission’s decision reviews the amounts in full or partially corresponding to the correction communicated in the letter referred to in the second subparagraph of paragraph 1 of this Article, the Member State shall make available the corresponding amount. Neither the Member State’s request to review the correction nor an action for annulment against the Commission’s decision shall affect the Member State’s obligation to make available the amount corresponding to the correction.

All corrections to the statements referred to in Article 7(1) shall be incorporated in aggregate statements, which shall amend the previous statements for the financial years concerned.

Article 10

By 31 May of the same year, the Commission shall send to the other Member States the information referred to in the first subparagraph of this paragraph that it has received from a Member State.

Article 11

Article 12

The Commission shall submit that report to the European Parliament and the Council for the first time by 31 December 2025.

Article 13

Article 13a

The Commission shall produce a report on the functioning of the VAT-based own resource system at the latest by 1 January 2025. The report shall state:

(a) the number of Member States that still apply a weighted average rate subject to any notifications concerning outstanding points;

(b) any changes to national VAT rates.

Article 14

This Regulation shall enter into force on the day following its publication in the Official Journal of the European Communities.

It shall apply from 1 January 1989.

It shall not apply, however, to the production or the correction of statements of the VAT resources base for years before 1989 which have been produced in accordance with Regulation (EEC, Euratom, ECSC) No 2892/77, which remains in force in respect of the statements concerned.

This Regulation shall be binding in its entirety and directly applicable in all Member States.