REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Report on the functioning of the VAT-based own resource system
Date: 2024-12-12
Institutions: Directorate-General for Budget, European Commission
Subjects: EU Member State, EU budget, European Commission, VAT, VAT resource, financial management

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 12.12.2024  COM(2024) 569 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Report on the functioning of the VAT-based own resource system        
 
 
Table of Contents 

1. 

Introduction .............................................................................................................................................. 2 

1.1. 

1.2. 

1.3. 

Development of the own resource system ....................................................................................................... 2 

The VAT framework until the reform of 2021 ................................................................................................ 3 

The reform of 2021 ....................................................................................................................................................... 4 

2.  Effectiveness of the VAT-based own resource system ........................................................... 6 

2.1. 

2.2. 

2.3. 

2.4. 

2.5. 

Evolution of VAT own resource bases .................................................................................................................. 6 

Collection of VAT-based own resource revenues ....................................................................................... 10 

Protection of the EU’s financial interests ........................................................................................................ 13 

Feedback from Member States ............................................................................................................................ 16 

Conclusion ......................................................................................................................................................................... 18 

3.  Evolution of the weighted average rate since 2016 .................................................................... 19 

3.1. 

3.2. 

3.3. 

Evolution of the weighted average rate: 2016-2020 .............................................................................. 19 

Evolution of the weighted average rate: 2021-2024 estimated ...................................................... 20 

Conclusion of the weighted average rate analysis .................................................................................... 23 

4.  Conclusion ............................................................................................................................................... 23 

Annex ................................................................................................................................................................. 24 

1 

 
 
 
 
 
1. Introduction 

The Commission has been tasked with producing a report on the functioning of the value added tax 
(VAT)-based  own  resource  system  by  1  January  2025.  By  law1,  the  report  must  include  ‘an 
assessment of whether the VAT-based own resource system, in particular, the multi-annual weighted 
average rate, is effective and adequate. If appropriate, the report shall be accompanied by a proposal 
to modify this Regulation with a view to calculating the definitive multi-annual weighted average rate 
on the basis of more recent data’. 

In accordance with the task entrusted to the Commission, this report provides an overview of the 
changes made to the VAT-based own resource system, analyses its effectiveness by analysing the 
evolution  of  the  relevant  performance  indicators  after  the  changes  were  made,  including  an 
assessment of the new system by Member States. It also assesses the adequacy of the system in 
relation to the changes made in 2021, with a focus on the multi-annual weighted average rate. The 
report also gives information about the number of Member States that still apply a weighted average 
rate, subject to reservations and any changes to national VAT rates.  

1.1.  Development of the own resource system 

VAT is a common tax paid by all final consumers when consuming goods or services in the single 
market. The tax is applied by all Member States as a broadly based consumption tax within a common 
framework set by EU Directives. This common tax is a key component of the single market, itself one 
of the EU’s greatest achievements.  

The VAT-based own resource system was introduced in 19702 and applied progressively, in 
line with the progressive harmonisation through VAT Directives. Following its introduction, VAT-based 
revenues,  together  with  customs  duties  and  agricultural  levies,  gradually  replaced  financial 
contributions from Member States. For the EU budget to be financed entirely by own resources, VAT-
based revenues became the balancing amount equalising revenue and expenditure by setting the 
applicable call rate as part of the annual budgetary procedure.  

In 1988, the gross national income (GNI) contribution was introduced as the new balancing 
own resource. This new own resource was considered to be more closely linked to national economic 
activity, bringing each Member State’s contributions more into line with its ability to pay. Over the 
years, the GNI-based own resource has become a more and more significant part of the EU budget, 
as  the  VAT-based  own  resource  call  rate  was  incrementally  reduced,  from  1.4%  in  19853  to  the 
current level of 0.3%4 (Chart 1).   

The VAT-based own resource contribution is calculated by applying a uniform call rate to 
Member States’ VAT bases. These bases are estimated by applying harmonised rules to the actual 
VAT tax receipts that are collected by Member States and, after any necessary corrections, are divided 

1  Art  13a  of  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,  as  amended  by  Council 
Regulation (EU, Euratom) 2021/769 of 30 April 2021. 
2 Council Decision of 21 April 1970, 70/243/ECSC, EEC, Euratom. 
3 In 1970, the maximum call rate was fixed at 1%. The enlargement to Spain and Portugal triggered the increase 
to a maximum of 1.4%. Decision 2000/597/EC of 29 September 2000 decreased the call rate, putting it at 
0.5%. 
4 EU Public Finances, 2014. 

2 

 
 
 
by a country-specific  weighted  average  VAT rate. Over time, some adjustments have been made. 
First,  to  protect  Member  States  with  higher  shares  of  consumption  in  final  demand  and  reduce 
regressive impacts on poorer countries, the base for the VAT-based own resource of each Member 
State was capped at 50% of GNI. Second, some Member States benefited until 2020 from reduced 
call rates5.  

The share of the VAT-based own resource has declined over time. In 2024, it represents around 14% 
of the revenues collected for the EU budget. 

Chart 1 – Evolution of revenues 1958-2023 

Source: Commission services 

1.2.  The VAT framework until the reform of 2021 

Until  2021,  the  VAT-based  own  resource  was  subject  to  complex  calculations.  The 
complexity of the calculations was mainly the result of two factors: (1) the need to obtain a ‘notional’ 
VAT base corresponding to a harmonised application of the VAT Directives; (2) the multiplicity of VAT 
rates requiring the calculation of a weighted average rate on an annual basis.  

As  far  as  the  first  factor  is  concerned,  the  harmonisation  of  the  VAT-based  own  resource  base 
required  numerous  corrections  and  statistical  compensations.  The  corrections  adjusted  the  VAT 
receipts for non-VAT aspects.  

These corrections accounted for 0.5% of total receipts for the period 2016-2019. The objective of 
statistical  compensations  was  to  ‘neutralise’  national  derogations  from  the  VAT  Directive.  They 
accounted  for  approximately  0.5%  of  the  base  during  the  same  period  (see  Tables  4  and  5  for 
details). A list of all corrections and compensations is in Annex 3. 

As far as the second factor is concerned, to calculate the VAT own resource base for a given calendar 
year, a Member State had to divide the total net VAT revenue collected during that year by the rate 

5 For the period 2007-2013, the call rate was 0.225% for Austria, 0.14% for Germany and 0.1% for Sweden 
and the Netherlands. For the period 2014-2020, the call rate was 0.15% for Germany, the Netherlands and 
Sweden. From 2021 onwards, the uniform call rate of 0.3% is also applied by these Member States. 

3 

 
 
 
 
the VAT was levied at in that Member State during the same year. However, if more than one VAT 
rate  was  applied  in  a  Member  State,  the  harmonised  base  of  the  VAT-based  own  resource  was 
calculated  by  dividing  the  total  net  VAT  revenue  collected  by  the  weighted  average  rate  of  that 
country’s  VAT.  This  methodology  was  determined  in  Council  Regulation  1553/89 on  the  definitive 
uniform arrangements for the collection of own resources accruing from VAT.  

1.3.  The reform of 2021 

Simplified calculations 

To make the system less complicated and to reduce the administrative burden for the Commission 
and Member States’ administrations, the VAT-based own resource was simplified, starting with the 
2021-2027 Multiannual Financial Framework.  

First, most of the adjustments for derogations and exemptions (corrections and compensations) were 
removed, making the calculations easier. 

Second,  under  the  new  system,  the  VAT-based  own  resource  base  is  calculated  more  easily,  by 
dividing national VAT receipts by the weighted average VAT rate based on a fixed reference year, 
instead  of  using  a  weighted  rate  calculated  for  every  year.  The  reference  year  for  this  weighted 
average  rate  (WAR)  was  fixed  at  2016  and  is  applied  throughout  the  2021-2027  Multiannual 
Financial Framework. It will continue to be used after that, up to and until Council Regulation 1553/89 
is changed.  

As in the previous system, the VAT bases of each Member State are then capped at 50% of each 
Member  State’s  GNI,  to  limit  the  regressivity  of  the  VAT-based  own  resource.  Finally,  from  2021 
onwards, a uniform call rate of 0.3% is applied to each Member State’s VAT base.  

Collected receipts remain the starting point for calculating the final VAT-based own resource base. 
All VAT collected should be considered. Anything recorded as VAT by Member States that is not VAT 
in nature, such as fines or belated interest, should consequently be deducted. Annexes 1 and 2 show 
the  financial  statement  Member  States  need  to  submit  each  year  under  both  the  old  and  new 
systems.  

4 

 
 
 
Table 1 – Comparison of the new and old VAT-based own resource systems 

2014-2020 

2021-2027 

Differences 

VAT receipts 

VAT revenues collected by 
the Member States minus 
VAT refunds 

Corrections 

Corrections as required by 
Regulation 1553/896 

Weighted average rate 
(WAR) 

Calculated each year 

Compensations 

Compensations apply 

Definition of the VAT 
base 

Capping 

Call rate 

VAT receipts 
(+/-corrections) /WARN 
+ compensations 
VAT own resource base 
not higher than 50% of 
GNI for each Member 
State 
0.3% (except the 
Netherlands, Germany and 
Sweden which apply 
0.15%) 

VAT revenues 
collected by the 
Member States 
minus VAT refunds 
Corrections only for 
territorial scope7 and 
deviations from the 
VAT Directive 
Applies the 2016 
frozen WAR 
Compensations do 
not apply 
VAT receipts 
(+/- corrections) 
/WAR2016 
VAT own resource 
base  not higher than 
50% of GNI for each 
Member State 

No difference 

Reduction in the 
number of corrections  

No more calculations of 
the WAR 
No more 
compensations 

Easier calculation 

No difference 

0.3% for all Member 
States 

No more exceptions 

Targeted controls 

The Commission performs inspections of the VAT-based own resource as defined by Article 
2(4) of Council Regulation 2021/768 laying down implementing measures for the system of own 
resources. Inspections are performed to ascertain that the operations to calculate the total net VAT 
collected were performed correctly, that the data used were appropriate, and that the calculations to 
determine the amount of that own resource are correct.  

The overall purpose of the inspections is to ensure that each Member State contributes the correct 
amount of the VAT-based own resource to the EU budget. During the inspections, the Commission 
checks all aspects of the annual statements of the VAT base (receipts, corrections of receipts, the 
2016  weighted  average  rate  (if  under  reservation),  etc.).  The  inspections  also  aim  to  obtain 
reasonable  assurance  that  national  systems  and  procedures  for  determining  the  VAT  base  are 
reliable, effective, accurate, exhaustive, and in accordance with applicable EU law, in terms of both 
their scope and method, and of the quality of the data used.  

The  changes  brought  about  by  the  new  system  make  it  a  lot  easier  to  produce  annual 
statements, prepare and carry out inspections. They also make it a lot easier for both Member States 
and  the  Commission  to  perform  and  follow  up  on  inspections.  The  changes,  also  discontinued  a 
significant number of calculations, as Tables 4 and 5 show. Using the 2016 weighted average rate 
percentage instead of calculating a new rate for each year also makes matters easier. 

6 Annex 1 has a template of the summary statement detailing all corrections and compensations applied in the 
old system.  
7 As described in Articles 6 and 7 of Directive 2006/112/EC (VAT Directive). 

5 

 
 
 
 
 
These  changes  enable  Member  States  to  use  fewer  resources  for  this  exercise,  meaning:  the 
production of annual statements by the national authorities, the provision of data for the different 
calculations often sourced from other state agencies and/or other external data source providers. 
National authorities also now need to devote less time to preparing for and taking part in inspections. 

The simplification also reduced the workload for the Commission. In particular, the time spent on 
preparing and carrying out inspection has been significantly reduced. Inspections performed under 
the new system (of the years 2021 and 2022) focus on the checks to ensure that the systems put 
in place by the Member States to collect, aggregate and report collected VAT receipts are effective 
and  efficient. However,  when the new system was still  in its infancy, inspections also focused  on 
addressing, together with the Member States, the open reservations from previous years referring to 
calculation items that were subsequently discontinued. As the number of reservations related to the 
previous system will gradually dwindle, the time savings on inspections performed under the new 
system  will  increase  over  time.  Inspection  time,  excluding  the  work  on  reservations  from  the  old 
system, is expected to decrease from 1 week on average to 2-2.5 days, depending on the number of 
infringements.  

The benefits of the 2021 simplification garnered praise from the European Court of Auditors in its 
opinion No 11/20208 confirming the expected  decrease in the administrative burden  for both the 
Member States and the Commission without significantly affecting the accuracy of the VAT-based 
contributions.  

2. Effectiveness  of  the  VAT-based  own  resource 

system  

To assess the effectiveness of the system, this section analyses to what extent the EU budget has 
been sufficiently protected and the VAT contribution properly collected. It also evaluates the evolution 
of the bases of the VAT-based own resource and its different components in order to assess how the 
simplification has affected the own resource.9  

2.1.  Evolution of VAT own resource bases 

Since  2016,  the  VAT  base  has  followed  an  upward  trend,  except  for  202010,  despite  the 
changes introduced by the 2021 reform11. This evolution was influenced by several events, the most 
important of which was the COVID-19 pandemic in 2020, and other macroeconomic impacts such as 
price increases in 2021 and 2022 which affected consumption and VAT collected in the economy 
(Charts 2 and 3).  

The VAT-based own resource revenues followed the same evolution until 2019, then to a 
lesser extent in the following years (Table 3), The impact of capping the own resource base at 50% 

8 Opinion No 11/2020 (pursuant to Articles 287(4) and 322(2), TFEU) concerning the draft Council Regulation 
(EU, Euratom) amending Regulation (EEC, Euratom) No 1553/89 on the definitive uniform arrangements for 
the  collection  of  own  resources  accruing  from  value  added  tax  (document  12771/20,  interinstitutional  file 
2018/0133 (NLE)) (europa.eu). 
9 Data used in section 2 of the report is calculated as of March 2024 
10 Annex 5 presents the evolution of the VAT bases per Member State for the period 2016-2022. 
11 From 2021 onwards the VAT bases are calculated by dividing the receipts by the ‘frozen’ weighted average 
rate of 2016, while before the actual annual weighted average rate was used 

6 

 
 
 
of GNI plays a role but the main reason is that the full difference between the forecast and revenues 
on the final VAT base will only show up in later years due to the time-lag of the balances exercise. .  

Table 2 – Evolution of aggregated VAT own resource bases of the EU-27 

EUR million 

2016 

2017 

2018 

2019 

2020 

2021* 

2022* 

VAT-based 
own resource 
base  
Annual 
growth rate 

5 231 083 

5 564 631 

5 838 647 

6 005 905  5 654 042 

6 355 460 

7 154 323 

6.4% 

4.9% 

2.9% 

-5.9% 

12.4% 

12.6% 

Source: VAT statements. 

The method of calculation for the VAT base is explained in Annex 1 for the old system and in Annex 
2 for the new system.  

*From 2021, the base is obtained by dividing the net receipts by the weighted average rate of 2016. 

Table 3 – Evolution of aggregated VAT own resource revenues EU 27 

EUR million 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

VAT-based own 
resource revenues 

Annual growth rate 

15 859  16 947  17 624  18 128  17 858  18 340  19 666  

6.9% 

4.0% 

2.9% 

-1.5% 

2.7% 

7.2% 

Source: European Commission Annual Accounts. 

The revenue is calculated by applying the call rate to the VAT base after capping. The VAT base is 
further adjusted using the results of the balances exercise (Section 2.2) to calculate the VAT revenues. 
Annex 4 also shows a comparison of VAT bases of the Member States where capping applies. 

The  development  of  the  VAT  base  can  be  further  analysed  by  looking  at  the  main  drivers.  Key 
expenditure categories forming the VAT base include private household consumption, government 
purchases, and gross fixed capital formation (GFCF) by the government. Together, these categories 
comprise  approximately  88%  of  the  total  VAT  base  (2020),  with  intermediate  consumption 
expenditures  of  firms  being  the  main  part  of  the  remainder.  Among  these,  private  household 
consumption  is the most significant,  accounting  for  60%  to  80%  of  expenditures  subject  to  VAT, 
depending on the Member State.  

Looking  at  national  accounts’  indicators in  current  prices  as  proxies  for  the  three  main  VAT  base 
components12, private household consumption was the primary driver of growth in the VAT 
base between 2016 and 2022, contributing to 74% of its increase in total on average for the EU-
27 (Chart 2). 

12 These macroeconomic indicators are also used in the annual procedure for forecasting the VAT own resources 
base for the annual budget. 

7 

 
 
 
 
 
 
 
Chart  2  –  Development  of  macroeconomic  indicators  for  VAT  base  components  
(2016 to 2022) 

40%

35%

30%

25%

20%

15%

10%

5%

0%

Government
GFCF

Government
purchases

Private
consumption

E
B

G
B

Z
C

K
D

E
D

E
E

E
I

L
E

S
E

R
F

R
H

T
I

Y
C

V
L

T
L

U
L

U
H

T
M

L
N

T
A

L
P

T
P

I

O S
R

I

K F
S

E
S

…
t
o
T

Source: ACOR forecasts. Own calculations. 

As far as the development of private consumption expenditure at EU-27 level (Chart 3) is concerned, 
inflation played a major role in 2021 and 2022.  

Chart  3  –  Evolution  of  inflation  and  private  consumption  at  current  prices  2016-2022  
EU-27 

Bn €
 9.000,0

 6.000,0

 3.000,0

 -

%
10

8

6

4

2

0

2016

2017

2018

2019

2020

2021

2022

Private final consumption expenditure at current prices (bn €)
Harmonised consumer price index (All-items) (%)

Source: Commission Autumn Forecasts 2023 

The simplification of the VAT system did not have a significant impact on the evolution of 
the base. The weight of each of the main components of the VAT statements of Member States has 
remained relatively stable, except for corrections that have increased in absolute terms following the 
reform (Table 4). The impact of the corrections that no longer apply is not higher than 0.1% of net 
receipts, while the compensations account for no more than 0.6% of the total VAT base (Tables 5 
and  6). The absolute value of compensations increased in 2019 and 2020 due to changes in the 
exemptions applied by Member States; for example, Italy has introduced a higher threshold for the 
small exempt firms scheme. Some limited compensations (such as those linked to infringements of 
the VAT Directive) are recorded as corrections in the new system, which explains the slight increase 
in the weight of corrections in 2021 and 2022.  

8 

 
 
 
Table 4 – Evolution of main components of VAT statements (EU-27) 

EU-27 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

Corrections (million EUR) 
Corrections as a percentage 
of net receipts (%) 
Compensations  
(million EUR) 
Compensations as a 
percentage of  total VAT 
base (%) 

4 612  

5 041 

5 546 

6 256 

6 212 

9 414 

14 754 

0.53% 

0.55% 

0.57% 

0.63% 

0.68% 

0.89% 

1.24% 

8 013 

23 179 

27 328 

34 974 

35 809 

0.15% 

0.42% 

0.47% 

0.58% 

0.63% 

N/A 

N/A 

Source: VAT statements and own calculations.  

Table 5 – Evolution of corrections as a percentage of net receipts* 

EU27 
Small taxed enterprises (%) 
Graduated tax relief (%) 
Flat rate farmers (%) 

Total discontinued 
corrections (%) 

2016 

2017 

2018 

2019 

2020 

-0.03% 
0.01% 
-0.08% 

-0.03% 
0.01% 
-0.05% 

-0.03% 
0.01% 
-0.06% 

-0.03% 
0.01% 
-0.05% 

-0.02% 
0.01% 
-0.07% 

-0.10% 

-0.07% 

-0.08% 

-0.07% 

-0.08% 

Source: VAT statements and own calculations.  
*These corrections were removed in 2021. 

Table 6 – Evolution of compensations as a percentage of total VAT base* 

EU-27 

2016 

2017 

2018 

2019 

2020 

Small exempt enterprises 
(%) 
Compensations Annex X  
part A13 (%) 
Compensations Annex X 
part B14 (%) 
Cars (%) 
Expenditure for cars (%) 

Total compensations (%) 

0.22% 

0.25% 

0.27% 

0.43% 

0.46% 

-0.11% 

-0.11% 

-0.10% 

-0.09% 

-0.10% 

0.45% 

0.48% 

0.50% 

0.52% 

0.53% 

-0.29% 
-0.22% 

0.15% 

-0.29% 
-0.21% 

0.42% 

-0.29% 
-0.19% 

0.47% 

-0.29% 
-0.23% 

0.58% 

-0.29% 
-0.23% 

0.63% 

Source: VAT statements and own calculations. 
* These compensations were removed in 2021. 

13 Compensations included under Annex X part A are dental technicians, public radio and television, buildings 
and building land, travel agents. 
14 Compensations included under Annex X part B are admission to sporting events, liberal professions, public 
telecommunication,  cremations  and  undertakers,  blind  persons,  war  victims’  commemorations,  private 
hospitals, public water, new buildings and building land, passenger transport, aircraft, warships, travel agents 
(within the EU). 

9 

 
 
 
 
 
 
 
Table 7 – Analysis of the VAT base in the period 2016-2022 

EU-27 EUR million 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

Receipts 

Net receipts 

868 503 

917 138 

959 113 

992 668 

913 713  1 056 431  1 182 601 

873 114 

922 179 

964 658 

998 924 

919 926  1 059 404  1 185 813 

Weighted average rate  

16.72% 

16.64% 

16.60% 

16.73% 

16.37% 

16.72% 

16.72% 

Total compensations 

8 013 

23 179 

27 328 

34 974 

35 809 

- 

- 

Final base (uncapped) 

5 231 083  5 564 631  5 838 647  6 005 905  5 654 042  6 355 460  7 154 323 

Annual growth of final 
base 

6.38% 

4.92% 

2.86% 

-5.86% 

12.40% 

12.57% 

Note: The weighted average rate for 2021 and 2022 is the frozen 2016 weighted average rate. 
Source: VAT statements.   

2.2.   Collection of VAT-based own resource revenues 

Member  States  pay  the  VAT  own  resource  contribution  monthly  together  with  the  other  own 
resources. The Commission collects the VAT revenues initially based on estimates of the VAT  bases 
agreed  by  the  Commission  and  Member  States  at  the Advisory  Committee  on  Own  Resources 
(ACOR/Forecast). The VAT contributions are calculated and paid on the basis of forecasts,  so they 
need to be adjusted to the real data provided in the VAT statements later on. The VAT statements 
may also include modifications to the VAT bases for the 4 previous years. In case of reservations 
introduced by the Commission or by the Member States, data for earlier years can also be adjusted.  

The Commission calculates for each Member State the difference between the forecast of the VAT-
based own resource and the latest data provided in the statements (the balances).  

The  Commission  informs  the  Member  States  of  the  result  of  the  balances  calculation  before 
1 February of the year following the year in which the data for the statement were submitted, and 
the Member States need to make available the amounts on the first working day of March of the 
year  following  the  year  in  which  the  Commission  informed  the  Member  States  of  the  balances 
calculation.  Failure  by  the  Member  States  to  make  the  necessary  payments  can  result  in  the 
application of interest (interests lower than EUR 1 000 are waived).  

Table 8 – VAT adjustments (balances)* 

EU-27  EUR million 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

VAT balances due to 
differences between the 
first statement and the 
forecast  

VAT balances due to 
revisions of previous 
statements 

313 

418 

502 

403 

- 54 

1.011 

1.734 

87 

6 

23 

- 1 

121 

97 

125 

Total adjustments EU-27 

400 

424 

525 

402 

68 

1.108 

1.859 

Source: EU annual accounts and European Commission calculations. Annex 6 provides the evolution of the VAT 
adjustments per Member State. 

* The balances exercise adjusts the data annually for the latest available year and for previous years. 

10 

 
 
 
The new system for calculating the own resource base has not affected the process of calculating 
and collecting the VAT-based own resource and its adjustments (balances). No outstanding payments 
are due. 

The outcome of the balances exercises for 2021 and 2022 is significantly higher than for previous 
years, and the adjustments are bigger in the case of most Member States (see also Annex 6). The 
main element  contributing  to these  variations is the  correction  of  the  forecasts  of  the  2021  and 
2022 VAT bases used for financing the relevant EU budgets, due to the underestimated increase in 
the inflation rate.  

The Commission continuously assesses the collection of VAT revenues by the Member States and the 
introduction of measures to increase the proper collection of VAT funds (Box 1). 

Box 1: Initiatives to improve the proper collection of VAT funds in Member States 

The  VAT-based  own  resource  accounts  for  about  2%  of  VAT  revenues  collected  by  Member 
States. Therefore, measures to improve the collection of VAT revenues primarily benefit national 
budgets but to some extent also the EU budget. 

Collection  of  VAT  –  Ninth  report  on  VAT  registration,  collection,  and  control  procedures  
(Article 12 of Regulation 1553/89) 

Every 5 years, the Commission produces a report on the measures taken and progress made by 
Member States in relation to the collection of VAT and on any improvements made. Following the 
assessment  issued  by  the  Commission  in  the  last  report  published  in  April  202215,  39 
recommendations  were  provided  by  the  Commission  to  improve  the  Member  States’  VAT 
collection system. 

The recommendations cover mainly the Member States’ VAT collection processes, namely VAT 
registration  and  risk  analysis,  VAT  information  technology  and  new  technologies,  filing  and 
payment,  collection  of  VAT  debts,  refunds  and  audits,  VAT  accounting,  accountability,  and 
disputes. Swift implementation of the proposed measures will improve the adequacy of the VAT 
own resource system for the EU budget. 

That is why, in the report’s conclusions, the Commission called on Member States to act on its 
recommendations, not only  to help generate the tax revenue needed to respond to the major 
challenges the EU is facing, but also to level the playing field in the internal market and pave the 
way towards a faster and more durable post-pandemic recovery.  

Changes to VAT legislation dealing with under-collection and fraud. 

From 1 July 2021, the mini one-stop shop (MOSS), put in place on 1 January 2015, became a 
one-stop  shop  (OSS)16  covering  a  wider  range  of  supplies  and  has  introduced  further 
simplifications.  This  enlarged  OSS  covers  three  special  schemes:  the  non-EU  scheme,  the  EU 
scheme, and the import scheme. 

The scope  of the existing non-EU scheme and EU scheme has been extended, but the import 
scheme is new. These special schemes enable taxable persons to declare and pay VAT due in 
Member States in which they are (in general) not established using a web portal in the Member 

15 eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52022DC0137 
16  The  Council  adopted  these  rules  by  means  of  Directive  2017/2455  in  December  2017  and  Directive  2019/1995  (See 
Consolidated text: Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax). 

11 

 
 
 
State in which they are identified (Member State of identification). This saves taxpayers the costs 
of registering for VAT in multiple Member States. 

These schemes are widely used. In 2022, Member States altogether collected more than EUR 17 
billion through the expanded OSS portal covering online sales in the EU. EUR 2.5 billion in VAT 
revenues  was  also  collected  on  imports  of  e-commerce  goods.  This  includes  the  new  VAT 
revenues generated by the abolition of the VAT exemption that previously applied to imports of 
low value goods not exceeding EUR 22 and was highly susceptible to fraud17. By making it easier 
to comply with the rules, thereby encouraging compliance, the schemes contribute to the proper 
functioning of the internal market, as the VAT rate applied is the same for all sellers irrespective 
of where they are based. 

In  March  2018,  the  report18  presented  by  the  Commission  to  the  Council  and  the  European 
Parliament on the effects of Articles 199a and 199b of Directive 2006/112/EC on combatting 
fraud (the report), led to a further important legislative initiative improving the adequacy of the 
VAT collection system and compliance with the VAT Directive. 

According to the report, Member States and stakeholders generally regarded the reverse charge 
mechanism set out in Article 199a of Directive 2006/112/EC as an effective tool in fighting or 
preventing VAT fraud in the sectors concerned. Therefore, with the entry into force of Council 
Directive (EU) 2018/1695 and Council Directive (EU) 2022/890, the application of those measures 
for a limited period, until the envisaged entry into force of the definitive VAT regime, has been 
prolonged.  

Finally, in December 2022, the Commission proposed a series of measures to modernise and 
make the EU’s VAT system work better for businesses and make it more resilient to fraud by 
embracing and promoting digitalisation19. At the time of the writing of this report, the legislative 
package is being negotiated in the Council. 

Key actions proposed will help Member States to collect up to EUR 11 billion more in VAT revenues 
annually.  The  legislative  package  aims,  among  other  objectives,  to  move  to  real-time  digital 
reporting based on e-invoicing for businesses operating cross-border in the EU, to update VAT 
rules for passenger transport and short-term accommodation platforms, and to introduce a single 
VAT registration across the EU. 

According to the impact assessment20, between 2023 and 2032, the preferred policy approach, 
an ‘enhanced approach’ (combining the introduction of digital reporting requirements at EU level, 
a deemed supplier provision for all accommodation and transport sectors, and a combination of 
a broader OSS extension, a reverse charge and mandatory IOSS) is expected to raise between 
EUR 172 billion and EUR 214 billion in net impacts against the baseline. 

17  Source:  Directorate-General  for  Taxation  and  Customs  Union  / Press  Release  dated  30/06/2023/   EU  VAT  rules  for  e-
commerce two years on: Updated revenue figures point again to a successful implementation. 
18 COM(2018) 118 final, 8.3.2018  Report from the Commission to the Council and the European Parliament on the effects of 
Articles 199a and 199b of Council Directive 2006/112/EC on combatting fraud. 
19 Proposal for a Council Directive amending Directive 2006/112/EC as regards VAT rules for the digital age. Proposal for a 
Council Regulation amending Regulation (EU) No 904/2010 as regards the VAT administrative cooperation arrangements 
needed for the digital age. 
Proposal  for  a  Council  implementing  Regulation  amending  Implementing  Regulation  (EU)  No  282/2011  as  regards 
information requirements for certain VAT schemes. 
20 Commission Staff Working Document SWD(2022) 394 final. 

12 

 
 
 
The enhanced approach will save EUR 50.6 billion between 2023 and 2032: EUR 41.4 billion from 
VAT reporting (EUR 11 billion from removing reporting obligations, EUR 24.2 billion from reducing 
fragmentation costs, EUR 4.3 billion from using pre-filled VAT returns, and EUR 1.9 billion from 
e-invoicing);  EUR  0.5  billion  from  streamlining  and  clarifications  in  relation  to  the  platform 
economy; EUR 8.7 billion from removing VAT registration obligations. 

It is therefore expected that when this series of measures is adopted and fully implemented by 
the Member States, the EU’s VAT system will work better. Consequently, the expected increased 
effectiveness of the collection of VAT by the Member States will generate more revenues for the 
EU budget. 

2.3.  Protection of the EU’s financial interests 

Evolution of outstanding reservations from 2016 to 2022 

Reservations are a way to protect the EU’s financial interests until the Commission can get 
sufficient assurance on the matter of own resource.  

Article 9.2 of Council Regulation 1553/89 as amended states that  ‘no further corrections shall be 
made  to the  statements  referred  to  in  Article  7(1) after  31  July  of  the  fourth  year  following  the 
financial  year concerned, unless those corrections concern points previously notified either by the 
Commission or by the Member State concerned’. Points previously notified are commonly referred to 
as  reservations.  A  reservation  keeps  open  any  question  of  methodology  or  of  used  data  sources 
relating to an item on which there is no agreement between the Commission and a Member State. 
The Commission can also place reservations in cases of infringements or potential deviations by the 
Member States from the VAT Directive. Reservations can also be placed by the Member States if they 
disagree with the Commission.  

Reservations give Member States a measure of legal and budgetary certainty. Once an item of an 
annual statement is time-barred (i.e. without any reservation), it cannot be changed and there is no 
financial impact on that item after time-barring.  

The number of reservations has slightly decreased over time  (Table  9)  and is expected to 
decrease  further  as  most  reservations  concern  the  system  before  2021.  The  large  majority  of 
reservations relate to items of annual statements that have been discontinued in the new system (at 
the end of 2023 this number was 30 out of the 37 reservations placed by the Commission). These 
reservations will gradually be dealt with and lifted and due to the introduction of the new system, so 
the number of reservations is expected to significantly decrease over time.  

At the end of 2023 there were  seven reservations covering the years of the new system (2021- 
2022). At the same time not all inspections for 2021 and 2022 were finalised at the time of this 
report,  so  the  number  of  reservations  related  to  the  new  system  might  slightly  increase21. 
Reservations placed in 2021 and 2022 mainly relate to infringements of and deviations from the 

21 The 2021 statements have been inspected for 22 Member States (BE, BG, CZ, DK, DE, IE, EL, HR, IT, CY, LV, 
LU, HU, NL, AT, PL, PT, RO, SI, SK, FI and SE), while the 2022 statements have been inspected for 12 Member 
States  (CZ, DK, DE, IE, HR, CY, HU, NL, AT, PL, FI, and SE).. 

13 

 
 
 
 
VAT Directive22. Some of the reservations placed in previous years relate to items of the statement 
that will be maintained and resolved during the next inspection cycles.  

Table 9 – Number of open VAT reservations 

Placed by Member 
States 
Placed by the 
Commission 
Related to 
infringements 

Total 
Out of which relating 
to the new system 

2016  2017  2018  2019  2020  2021  2022  2023 

16 

50 

15 

53 

15 

     14 

81 

82 

12 

64 

16 

92 

10 

61 

19 

90 

17 

61 

19 

97 

17 

71 

16 

104 

11 

56 

17 

84 

13 

37 

16 

66 

7 

Note: Number of reservations open on 31 December of each year (which could have been placed in previous 
years). Annex 7 also shows the distribution of reservations across Member States. 

Table 10 – Open long outstanding VAT reservations* 

2016  2017  2018  2019  2020  2021  2022  2023 

Placed by Member 
States 
Placed by the 
Commission 
Related to 
infringements 

Total 

Source: European Commission. 

4 

2 

3 

9 

6 

6 

2 

6 

1 

3 

7 

4 

4 

3 

5 

6 

2 

3 

5 

1 

9 

4 

1 

7 

3 

14 

10 

15 

14 

10 

14 

11 

* A long outstanding reservation is defined as a reservation in place for over 5 accounting years. 

For  the  2016  weighted  average  rate,  used  starting  with  2021  VAT-based  own  resource 
statements, three Member States have  one or more reservations. This means that for these Member 
States, the weighted average rate is provisional at this stage and will become definitive only once 
the reservation has been lifted. The Member States are Germany, Croatia, and Luxembourg23.  

22 Reservations related to infringement cases may take longer to resolve as some of them are awaiting legal 
analysis or rulings by the European Court of Justice. 
23 Annex 7 also shows a detail of the percentages of the 2016 weighted average rate per Member 
State and their status. Note that the VAT base in Croatia and Luxembourg is significantly higher than 
the capped base, and their calculated VAT bases are replaced by a value corresponding to 50% of 

14 

 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Evolution of infringements in relation to the VAT-based own resource 
from 2016 to 2022 

Non-compliance with own resource legislation leads to infringements. Infringement procedures for 
the VAT-based own resource are extremely rare, and most differences of opinion are resolved during 
the  verification  cycle  permitting  corrections  and  adjustments  within  4  years.  Between  2016  and 
2022, the Commission launched one infringement (Box 2). The introduction of the new system has 
had no impact on infringements so far. The introduction of the frozen weighted average rate and 
elimination of most of the compensations has made it a lot easier to calculate VAT bases and has 
the potential to limit the number of disagreements with the Member States.  

Although  relatively  rare,  infringement  procedures  are  a  powerful  incentive  for  Member  States  to 
comply with own resource legislation and are essential for the credibility of the EU’s own resource 
system.  These  procedures  ensure  equal  treatment  of  Member  States  and  discipline  in  the  way 
revenue is collected. 

Box 2: Pending infringement procedures 

In the period 2016-2022, the Commission launched one infringement procedure related to the 
VAT-based own resource (UK mini one-stop Shop procedure – infringement 2020/2316). The mini 
one-stop shop (MOSS) was introduced on 1 January 2015 and extended, to become a one-stop 
shop (OSS) from 1 July 2021, covering a wider range of supplies and making things even easier, 
as Box 1 describes. The VAT mini one-stop shop is an optional scheme that enables taxpayers to 
account  for  VAT,  usually  due  in  multiple  Member  States,  in  just  one  Member  State.  Services 
included  in  the  MOSS  scheme  include  cross-border  telecommunication,  television  and  radio 
broadcasting, and digital services. The Member State where the payment is made could retain 
30% of the VAT paid in 2015 and 2016 and 15% in 2017 and 2018. This retained VAT should 
be included in the VAT base for the purpose of the VAT-based own resource.  

From 2015 to 2018, the UK national authorities did not consider MOSS retentions as VAT and 
therefore did not take them into account in their statement for calculating and paying the VAT-
based own resource. After receiving a reasoned opinion from the Commission in November 2023, 
the  UK  requested  an  extension  of  the  deadline  for  replying,  and  worked  closely  with  the 
Commission to precisely determine the amount of resources still due and to resolve the case. 
Following  extensive  discussions  an  agreement  was  reached  and  the  UK    made  available  the 
amount of principal due in July 2024 ( GBP 4.016 million). The interest amount due (GBP 3.05 
million)  has  been  included  in  the  UK  September  invoice  and  the  Commission  will  be  able  to 
proceed with the formal closure of this case once the last instalment of this invoice has been 
paid (first half of 2025).    

their respective GNI. This implies that any change in the percentages of their rates would not affect 
the size of their VAT-based own resource contributions. 

15 

 
 
 
 
 
 
2.4.  Feedback from Member States 

In preparing this report, the Commission sent a questionnaire to Member States (Annex  8) to  get 
feedback on their assessment of the new simplified VAT-based own resource system. Member States 
were asked to score the new system, consider the features that they value the most/least and reflect 
on possible savings the new system could bring (for example, in workload, the number of staff), and 
if possible, to quantify those savings. 

SCORING OF THE NEW SYSTEM 

On a scale from 1 to 10 (where 10 is the highest score), 26 Member States (one Member State did 
not give any score) gave the new system a score of 8.9 on average. Putting the scores into a grid 
with  5 categories (Table  11),  most  (15)  of  the  26responding Member States reported  being ‘very 
satisfied’ with the new system, while 11 Member States reported being ‘satisfied’, of which only 2 
gave  the  new  system  a  score  of  7.  Member  States  highlighted  different  aspects  as  particularly 
positive  in  view  of  their  scoring.  They  pointed  to  the  smaller  amount  of  time  and  fewer  human 
resources needed to draw up the annual VAT statement and to participate to the inspection cycle, 
especially  thanks  to  the  use  of  the  frozen  weighted  average  rate  and  the  elimination  of 
compensations/corrections. Benefits were also seen in less susceptibility to error and overall reduced 
administrative burden.  

Table 11 – Scoring of the new system 

1-2 

3-4 

Very 
dissatisfied 

Dissatisfied 

0 

0 

5-6 
Neither 
satisfied nor 
dissatisfied 
0 

7-8 

9-10 

Satisfied 

Very satisfied 

11 

15 

Source: Member States responses to questionnaire; one Member State did not provide a scoring 

Chart 4 – Score of satisfaction with the new system on a scale from 1 to 10 

Source: Member States responses to questionnaire 

16 

 
 
 
 
GREATEST VALUES OF THE NEW SYSTEM 

Member States most valued the new system’s being easier to use, as compensations and corrections 
have been removed (16 Member States) and the annual calculation of the weighted average rate is 
no longer required (19 Member States). Some Member States (7) also pointed out, to varying degrees, 
that the simplified calculation is now much more closely linked to the actual VAT revenues. Some 
also  said  that  parts  of  the  previous  calculations  required  significant  resources  but  had  a  limited 
impact  on  the  VAT-based  own  resource.  One  Member  State  was  also  very  pleased  that  the  new 
system provides a more level playing field between Member States because discrepancies linked to 
different methods and data sources for calculating the weighted average rate and compensations 
are no longer relevant. General time savings, a reduction in workload and administrative burden (for 
example, fewer national authorities or other external data source providers are involved), (expected) 
positive effects on the inspection cycle (in particular due to abolished corrections/compensations), as 
well as clear and comprehensive templates, were also positively acknowledged by Member States. 
Only one Member State asked for the calculation method to be made even easier. 

LEAST VALUABLE FEATURES OF THE NEW SYSTEM 

Even  though  the  new  system  was  received  positively,  a  few  Member  States  identified  room  for 
improvement. In particular, five Member States pointed out that using a frozen weighted average 
rate  may  not  reflect  changes  in  national  VAT  law,  especially  VAT  rate  changes,  and  would  limit 
accuracy; three Member States mentioned the burden of reservations related to the old system; three 
mentioned the uncertainty about new potential future calculations of the  weighted average rate; 
one Member State mentioned the complex calculations for existing corrections with limited financial 
impact; and seven Member States mentioned the need to continue to calculate the rate due to the 
VAT gap study. Thirteen Member States did not report there being any less valuable features of the 
new VAT-based own resource system. 

IMPACT OF THE NEW SYSTEM ON RESOURCES 

On the impact on savings (for example, the reduction of staff, workload, costs) of the new system, 
21  Member  States  gave  a  clearly  positive  but  mostly  generic  reply.  They  generally  confirmed  a 
remarkable reduction of workload for preparing the VAT statement (from months to only a few days) 
and  highlighted  the  time  savings  as  regards  previous  corrections/compensations,  the  weighted 
average rate calculation and the use of external data providers. 

Savings made possible by the reform of the system for the preparation of VAT statements, as well 
as the preparation  of  and participation in  inspections, were quantified by  14 Member States. The 
replies show a broad variety of savings and calculation methods used. For example, savings were 
reported, from 0.2 to 0.3 FTE (full-time equivalents) to 90% savings in workload compared to the 
resources allocated to the old system. 

17 

 
 
 
2.5.  Conclusion 

The analysis shows that the simplification of the VAT own resource system has broadly achieved its 
objectives of reducing the administrative burden for both the Member States and the Commission.  

The  discontinuation  of  certain  corrections  and  compensations  decreased  the  complexity  of  the 
calculations, without  having  a significant impact on the value  of the VAT base  on which the own 
resource  is  collected.  The  impact  of  the  discontinued  corrections  is  not  higher  than  0.1%  of  net 
receipts, while the discontinued compensations account for no more than 0.6% of the total VAT base. 
The value of the uncapped VAT base continues to increase over time, with macroeconomic factors 
linked to the COVID-19 pandemic’s playing a major role in recent years. 

At the same time, the collection of the VAT-based own resource has not been affected by the new 
VAT own resource system as the rules on forecasting, balancing and collection were not changed 
when the simplification was introduced24.  

The number of reservations have slightly decreased over time as most of the compensations and 
corrections were discontinued. Most of the open reservations relate to items in the previous system 
that have been discontinued. Once these reservations will have been addressed and resolved in future 
inspections, the number of open reservations is expected to significantly decrease together with the 
administrative  resources  needed  to  address  these  reservations  for  both  the  Commission  and  the 
Member States.   

The reform’s positive impact on the administrative burden was acknowledged by Member States. It 
is  too  early  to  fully  assess  and  quantify  the  administrative  savings  of  the  change  for  both  the 
Commission  and  the  Member  States,  but  it  seems  that  the  new  system  has  brought  substantial 
benefits, while ensuring the continued effectiveness of the VAT own resource system. Some Member 
States expressed concerns that the use of the frozen 2016 weighted average rate may not reflect 
significant changes in national VAT rates, thereby decreasing the accuracy of the VAT base.  

Freezing the rate at its 2016 level could create adverse financial incentives, in the sense that any 
subsequent rate cut (or base narrowing, or moving of a class of transactions to a lower VAT bracket) 
could end up reducing the Member State’s contribution to the EU budget. 

The issue of the adequacy of the application of the 2016 weighted average rate  will be evaluated 
in the next chapter.  

24 To be noted that the revision of the Making Available Regulation in 2021, postponing the payment of the 
balances and capping the impact of late payment interest, was unrelated to the simplification being analysed.     

18 

 
 
 
 
3. Evolution of the weighted average rate since 2016 

3.1.  Evolution of the weighted average rate: 2016-2020 

Between 2016 and 2020, the weighted average rate remained stable for most Member States.  Only 
Germany, Greece  and  Croatia  saw  changes  of  above  1  percentage point  compared  to  the  rate in 
2016, exhibiting lower rates in 2019 or 2020 compared to 2016, primarily due to responses to the 
COVID-19 pandemic. 

Generally, Member States’ weighted average rates evolved due to changes in overall VAT rates or 
the application of different categories of VAT for certain products. Germany and Ireland decreased 
their reduced and standard VAT rates, while Austria introduced a new reduced rate. Many countries 
also  applied  reduced  rates  or  super-reduced  rates25  to  specific  product  categories.  For  instance, 
restaurants  and  hotels  saw  reductions  in  Austria,  Belgium,  Bulgaria,  Czechia,  Germany,  Greece, 
Croatia, Hungary, Ireland and Lithuania. The passenger transport sector was subject to reduced VAT 
rates  in  Czechia  and  Greece.  VAT  rates  on  books  and  newspapers  were  also  reduced  in  Austria, 
Bulgaria, Latvia, Slovenia and Slovakia. 

The  recreation  and  cultural  sector,  covering  cinemas,  theatres  and  concerts,  saw  VAT  reductions 
across  numerous  Member  States,  including  Bulgaria,  Germany,  Greece,  France,  Czechia,  Estonia, 
Croatia, Hungary, Ireland, Italy, Luxembourg, Malta, the Netherlands, Poland, Romania and Slovenia. 
Conversely, the increase in the Netherlands’ weighted average rate in 2019 was due to an increase 
in the reduced VAT rate. Denmark applies only one VAT rate, with no changes to its weighted average 
rate.26 

Chart 5 – Absolute change in weighted average rate of 2019-2020 compared to 2016 (in 
percentage points) 

Source: Member States’ VAT statements for the financial years 2016, 2019 and 2020 

25 A super-reduced rate is below the minimum 5% rate and can be applied to a limited list of goods and services 
(Article 98.2 of the VAT Directive). 
26 Annex 12 presents the evolution of Member States weighted average rates in the period 2016 - 2020 

19 

 
 
 
 
Box 3: Changes in VAT legislation that could affect the weighted average rate 

In April 2016 the Commission issued the Action plan on VAT – Towards a single EU VAT area – 
Time to decide27. This action plan sets out the pathway towards creating a single EU VAT area. In 
this  context,  since  2016  the  VAT  Directive  has  been  amended  several  times  (16  Directives 
amending it adopted –Annex 10). The impact of these amendments is expected to have an effect 
over time and will continue to have a fundamental impact on the functioning of the VAT system 
and the internal market in the years to come. 

Council  Directive  (EU)  2022/542  of  5 April  2022  amending  Directives  2006/112/EC  and  (EU) 
2020/285 as regards rates of value added tax provides the possibility to maintain preferential 
rates for products for which derogations already existed for some Member States enabling other 
Member  States  to  gain  access  to  those  derogations,  the  introduction  of  rates  lower  than  5% 
(forbidden before the amendment), and the possibility to apply reduced rates to more products. 
These amendments can have an impact on the multiannual weighted average rate, currently set 
at 2016 levels. 

Finally, in particular for 2020 and 2021, the adequacy of the multiannual weighted average rate 
might also have been affected by the Directives28 adopted for the temporary measures in relation 
to value added tax applicable to COVID-19 vaccines and in vitro diagnostic medical devices in 
response  to  the  COVID-19  pandemic,  and  the  temporary  exemptions  on  imports  and  certain 
supplies, in response to the COVID-19 pandemic. 

3.2.  Evolution of the weighted average rate: 2021-2024 estimated 

Since 2021, Member States are no longer required to calculate weighted average rates for the VAT-
based own resource. Therefore, this section estimates those rates for the years 2021-2024 in order 
to evaluate the adequacy of the application of the 2016 rate used in this period. The Commission  
has  estimated  the  weighted  average  rate  after  2020,  using  a  simplified  calculation  method 
compared to the actual weighted average rate calculations of Member States. This method only uses 
the consumption data of private households (Box 4). 

27 Communication from the Commission to the European parliament, the Council and the European Economic 
and Social Committee on an action plan on VAT towards a single EU VAT  - time to decide COM/2016/0148 
final. 
28  Council  Directive  (EU)  2020/2020  of  7  December  2020  amending  Directive  2006/112/EC  as  regards 
temporary measures in relation to value added tax applicable to COVID-19 vaccines and in vitro diagnostic 
medical devices in response to the COVID-19 pandemic; 
Council  Directive  (EU)  2021/1159  of  13 July  2021  amending  Directive  2006/112/EC  as  regards  temporary 
exemptions on importations and on certain supplies, in response to the COVID-19 pandemic. 

20 

 
 
 
 
 
 
Box 4: Explanation of the simplified method for the weighted average rate 

Up to 2020, the calculation of the weighted average rate, as done by the Member States, required 
a lot of detailed information on, for example, different expenditure categories, their VAT rates or 
exempt sub-categories. Most of this information is not readily available without Member States’ 
detailed investigations and calculations. The major determinant of the weighted average rate, 
making up about 60-80% of Member States’ expenditure subject to VAT, is the consumption of 
private households. Data on households’ private consumption, as part of Member States’ national 
accounts, are publicly available from Eurostat. The simplified weighted average rate relies on 
estimations  based  on this  household  data  but  abstains  from  calculations  of other  categories, 
such as government purchases, gross fixed capital formation, and the intermediate consumption 
of companies (see Annex 14 for a breakdown of consumption per Member States).  
The simplified weighted average rate (S-WAR) applies the growth rate of the weighted average 
rate based on household consumption data, termed household weighted average rate (HH-WAR) 
of year N, using year B as the basis (reference year), to the actual weighted average rate of the 
base year: 

S-WARN   = WARB  x    HH – WARN 
                                 HH – WARB   

The household weighted average rate (HH-WAR) is calculated by the European Commission Joint 
Research Centre (JRC). A detailed description of the methodology is in Annex 15. 

Annex 13 presents a comparison between the simplified weighted average rate for 2020 and the 
actual rates.  

According  to  these  estimates,  the  simplified  weighted  average  rate  between  2021  and  2024  in 
Member States remained relatively close to the actual weighted average rate from 2016. In 13 out 
of  27  Member  States,  the  simplified  weighted  average  rate  stayed  within  a  1  percentage  point 
difference of the 2016 rate throughout all the observed years (2021-2024). Significant changes in 
the weighted average rate greater than 2 percentage points were only observed in a few countries: 
Germany, Croatia, Poland and Romania. 

Generally,  changes  to  the  simplified  weighted  average  rate  in  the  observed  timeframe  can  be 
attributed  to  changes  in  consumption  patterns  and  VAT  rates.  Often  the  VAT  rate  decreased  for 
electricity, gas, or fuels in response to energy supply shortages and related price increases following 
the  Russian  attack  on  Ukraine.  These  decreases  were  seen  in  Belgium,  Bulgaria,  Spain,  Croatia, 
Ireland, Italy, Poland, and Portugal. Lower rates on food products, such as fruits and vegetables, also 
contributed to the changes in Spain, Croatia, Italy and Poland.  Some countries, including Belgium, 
Germany, Romania and Ireland, reversed the temporary VAT rate reductions implemented during the 
COVID-19 pandemic, resulting in increases in their weighted average rates. VAT rate deductions on 
electricity, gas and fuels have also been removed in some countries, such as Poland, explaining the 
rise of the weighted average rate in 2023 and 2024. 

Regarding  the  changes  to  the  national  VAT  rates,  Annex  11  gives  an  overview  of  the  VAT  rates 
applicable in each Member State in the period 2016-2023.  

21 

 
 
 
 
 
 
 
 
 
Chart  6  –  Absolute  change  in  simplified  weighted  average  rates  from  2021  to  2024 
compared to 2016 weighted average rate (percentage points) 

Source: Own calculations. 

In 2024, it is to be expected that most VAT measures taken by Member States to  account for the 
economic impacts of the COVID-19 pandemic have been lifted. This means that comparing the 2016 
weighted average rate to the simplified rate of 2024 should give a useful indication of the adequacy 
of the 2016 rate after the pandemic. For most countries, the weighted average rate in 2024 was 
below the 2016 rate, with decreases between 5% and 10% for many countries. Germany, Croatia 
and Romania show the largest decreases, of about 10%.  

Chart 7 – Relative change in simplified weighted average rate 2024 compared to 2016 
weighted average rate  (%) 

10%

5%

0%

-5%

-10%

-15%

BE BG CZ DK DE EE IE EL ES FR HR IT CY LV LT LU HU MT NL AT PL PT RO SI SK FI SE

Source: Own calculations. 

22 

 
 
 
 
3.3.  Conclusion of the weighted average rate analysis 

In conclusion, the analysis of the simplified weighted average rate estimation indicates that applying 
the 2016 weighted average rate to the years 2021 to 2024 seems to have been adequate for most 
Member States. The estimations show that the number of countries whose weighted average rate 
would otherwise have been considerably different (above 10%) is very small.  

The  period  under  consideration  was  affected  by  several  events  with  a  potential  impact  on  the 
applicable VAT rates and consequently on VAT own resources. Temporary changes in VAT rates linked 
to COVID-19 measures, as well as greater flexibility for setting VAT rates in accordance with Council 
Directive  (EU)  2022/542,  make  it  difficult  to  estimate  the  impact  of  the  application  of  the  2016 
frozen rate in isolation. However, the analysis suggests that discontinuing the annual calculation of 
the weighted average rate had a limited impact on the fair distribution of the VAT contribution to the 
EU budget, while significantly reducing the administrative burden for the Commission and Member 
States. 

4. Conclusion 

This report assesses the functioning of the VAT-based own resource after the changes introduced by 
Council Regulation (EU, Euratom) N° 2021/769, in particular the adequacy of the frozen multiannual 
weighted average rate.  

As described in Chapter 2, the discontinuation of most of the compensation and corrections did not 
have a significant effect on the amount of the VAT own resource base, while the number of open 
reservations has been reduced. Together with the simplified method of calculating the VAT-based 
own resource with the frozen 2016 weighted average rate, the administrative burden on both the 
Member States and the Commission has decreased remarkably. 

There are currently three Member States that use a provisional 2016 rate due to open reservations: 
Germany,  Croatia  and  Luxembourg  (Annex  9  shows  the  weighted  average  rate  for  each  Member 
State). 

On the adequacy of the frozen rate, Chapter 3 shows that the estimated impact of using the 2016 
rate in the years 2021 to 2024 only led to deviations from the actual rate of more than 1 percentage 
point for a small number of  Member States. Overall, the estimated deviations became smaller in 
2024 due to the adjustments made to counter the economic impacts of the COVID-19 pandemic. 
These deviations from the estimated rate in 2024 range from +4% to -11%. 

Annex 11 gives an overview of the VAT rates applicable in each Member State in the period 2016-
2023. 

23 

 
 
 
 
 
 
 
Negative 

Positive 

Annex 

Annex 1 Statement Summary Table  

VAT own resources according to Council Regulation 1553/89 

Code 

R.1 

R.2 

R.3 

R.4 

R.5.1 

R.5.2 

R.6 

R.7.1 

R.7.2 

R.8 

W 

IB 

SE.1 

E.2 

XA.1 

XA.2 

XA.3 

XA.4 

XA.T 

XB.1 

XB.2 

XB.3 

XB.4 

XB.5 

XB.6 

XB.7 

XB.8 

XB.9 

Receipts 

Receipts 

Fines & interest 

Recovery costs 

Small taxed enterprises (-) 

Other corrections (+) 

Other corrections (-) 

Graduated tax relief 

Flat-rate farmers (+) 

Flat-rate farmers (-) 

Net receipts 

Weighted average rate (%) 

Intermediate base 

Compensation to base 

Small exempt enterprises (+) 

Small exempt enterprises (-) 

Annex X, part A of Dir 2006/112/EC 

Dental technicians 

Public radio and TV 

Existing buildings and building land 

Travel agents (outside EU) 

Total Annex X, part A 

Annex X, part B of Dir 2006/112/EC 

Admission to sporting events 

Liberal professions 

Public telecommunication 

Cremation and undertakers 

Blind persons 

War victims’ commemorations 

Private hospitals 

Public water 

New buildings and building land 

XB.10 

Passenger transport (domestic leg ) 

24 

 
 
  
  
 
 
  
 
 
  
 
 
 
 
 
  
 
 
  
 
 
  
 
 
 
 
 
  
 
 
  
 
 
 
 
  
  
 
 
  
 
  
  
 
  
  
  
  
 
  
 
 
  
 
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
  
  
  
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
Negative 

Positive 

Code 

XB.11 

Aircraft 

XB.12  Warships 

XB.13 

Travel agents (in the EU) 

XB.T 

Total Annex X, part B 

Limited deduction rights 

RD.C 

RD.E 

OC.1 

OC.2 

OC.3 

OC.4 

OC.5 

OC.6 

OC.7 

C.T 

Cars 

Expenditures on cars 

Other compensations 

Other compensations 

Other compensations 

Other compensations 

Other compensations 

Other compensations 

Other compensations 

Other compensations 

TOTAL compensations 

Final VAT base 
Source: European Commission 

25 

 
 
  
  
 
  
 
 
  
 
 
  
 
  
 
 
  
  
  
  
 
 
 
 
 
 
  
  
  
  
 
  
 
 
  
  
 
  
  
 
  
  
 
  
 
 
  
 
 
 
 
  
  
 
  
  
 
 
 
Annex 2 Statement Summary Table   

VAT  own  resources  according  to  Council  Regulation  1553/89  as  amended  by  Council  Regulation 
2021/769 

Code 

Description 

Currency used:  

R1 

R1.1 

R1.2 

NR 

A 

B 

C1 

C2

… 

Cn 

TC 

CNR 

WAR 

FB 

Receipts 

Any VAT amount not recorded in receipts (+) 

Any non-VAT amount recorded in receipts (-) 

Net receipts 

R1+R1.1–R1.2 

Correction Article 3.229 (a) Territorial Scope_____ __(+) 

Correction Article 3.230  (b) Territorial Scope_______(+-) 

Correction Article 3.2 (c) Infringement 1 _________(+) 

Correction Article 3.2 (c) Infringement 2 _________(+) 

…… 

Correction Article 3. 2 (c) Infringement n _________(+) 

Total corrections 

Corrected net receipts 

Multiannual weighted average rate (%)31 

Final uncapped VAT OR Base 

A+or–B+C1…Cn 

NR+or–TC 

nn.nnnn% 

CNR/WAR 

Source: European Commission 

29 Territories mentioned under Article 6 are Mount Athos, the Canary Islands, the French territories referred to 
in Article 349 and Article 355(1) of the Treaty on the Functioning of the European Union (Guadeloupe, French 
Guiana,  Martinique,  Reunion,  Saint-Barthelemy,  Saint  Martin),  the  Aaland  Islands,  the  Channel  Islands, 
Campione d’Italia, the Italian waters of Lake Lugano, the Island of Heligoland, the territory of Busingen, Ceuta, 
Melilla, and Livigno. 
30 Territories mentioned under Article 7 are the Principality of Monaco, the Isle of Man, and the United Kingdom 
Sovereign Base Area of Akrotiri and Dhekelia. 
31 The definitive or preliminary weighted average rate of year 2016 expressed in four decimal places from the 
pre-2021 VAT-based own resource system. 

26 

 
 
  
 
 
  
  
  
 
  
  
  
 
 
 
 
Annex 3 Description of compensations and corrections 

Title 

Description 

Purpose 

Legal reference 

R.2 Fines & interest 

R.3 Recovery costs 

To eliminate elements that 
are not VAT but are booked 
together with VAT 

Only collected VAT should 
constitute the base for 
the VAT-based own 
resource 

Article 2(1) of the old 
CR 1553/89 and 
Article 2 of the VAT 
Directive 

R.4 Small taxed 
firms 

To exclude such small firms 
with a turnover below EUR 
10 000 

R.5.1 & R.5.2 Other 
corrections 

To correct for other 
elements affecting R.1 
‘Collected receipts’ positively 
or negatively 

Firms with a turnover above 
EUR 10 000 may be excused 
on a sliding scale from 
paying the VAT due 

As certain farmers carry out 
their VAT obligations 
differently, the effect of that 
needs to be translated into a 
positive or negative effect 
on R.1 ‘Collected receipts’ 

To include such small firms 
with a turnover above EUR 
10 000 that are exempt and 
therefore not subject to the 
normal VAT obligations 

R.6 Graduated tax 
relief 

R.7.1 & R.7.2 Flat-
rate farmers 

SE.1 & SE.2 Small 
exempt firms 

XA.1 Dental 
technicians 

XA.2 Public radio 
and TV  

XA.3 Existing 
buildings and 
building land 

XA.4 Travel agents 
(outside the EU) 

XB.1 Admission to 
sporting events 

Member States have the 
option of leaving these 
firms out based in 
situations where they 
encounter difficulties 
applying normal VAT 
arrangements 

Only collected VAT, 
should constitute the 
base for the VAT-based 
own resource. The 
corrections deduct non 
VAT elements and add 
VAT elements recorded 
elsewhere 
To alleviate the 
administrative burden for 
small firms when 
applying normal VAT 
arrangements 

To alleviate the 
administrative burden for 
farmers when applying 
normal VAT 
arrangements 

To include exempt firms 
with a turnover between 
EUR 10 000 and the 
national exemption 
thresholds as if they had 
been subject to the 
normal VAT obligations 

Article 2(3) of the old 
CR 1553/89 and Title 
XXI, Chapter 1, 
Section 1 of the VAT 
Directive 

Article 2(1) of the old 
CR 1553/89 and 
Article 2 of the VAT 
Directive 

Article 5(1) of the old 
CR 1553/89 and Title 
XXI, Chapter 1, 
Section 1 of the VAT 
Directive 

Article 5(2) of the old 
CR 1553/89 and Title 
XXI, Chapter 2 of the 
VAT Directive 

Article 6(1) of the old 
CR 1553/89 and Title 
XXI, Chapter 1, 
Section 1 of the VAT 
Directive 

Article 2(2), second 
indent and Article 
6(2) first indent of 
the old CR 1553/89, 
Article 370 and Annex 
X, part A of the VAT 
Directive 

To exclude VAT receipts 
related to certain supplies 
that are included in R.1, but 
should not be 

To take out supplies that 
are taxed in a Member 
State but should be 
exempt 

To include VAT receipts 
related to certain supplies 

To add back VAT onto 
supplies that are exempt 

Article 2(2), third 
indent and Article 

27 

 
 
 
Title 

Description 

Purpose 

Legal reference 

XB.2 Liberal 
professions 

that are not included in R.1, 
but should be 

in a Member State but 
that should be taxed 

6(2) second indent of 
the old CR 1553/89, 
Article 371 and Annex 
X, part B of the VAT 
Directive 

XB.3 Public 
telecommunications 

XB.4 Cremation and 
undertakers 

XB.5 Blind persons 

XB.6 War victims’ 
commemorations 

XB.7 Private 
hospitals 

XB.8 Public water 

XB.9 New buildings 
and building land 

XB.10 Passenger 
transport 

XB.11 Aircraft 

XB.12 Warships 

XB.13 Travel 
agents 

RD.C Company cars 

RD.E Expenditures 
on company cars 

OC.1 – OC.n Other 
compensations 

This compensation is 
optional for the Member 
States. When the general 
deduction right is limited, a 
negative compensation is 
needed as R.1 ‘Collected 
receipts’ would otherwise be 
inflated compared to other 
Member States where the 
deduction right for these 
supplies is  not restricted 

Typical examples of ‘Other 
compensations’ relate to 
infringements, infringement-
like departures from the VAT 
Directive, or certain VAT 
aspects of a Member 
States’s territorial 
particularities 

To adjust R.1 Collected 
receipts to mimic the 
situation where these 
supplies are not subject 
to restricted deduction 
rights 

Article 6(4) of the old 
CR 1553/89 and 
Article 176 of the 
VAT Directive 

To add back VAT onto 
supplies that are not 
subject to an 
infringement or treated 
in a way that otherwise 
departs from normal VAT 
treatment in other 
Member States 

Article 2(1) of the old 
CR 1553/89 and 
Article 2 of the VAT 
Directive 

Source: European Commission

28 

 
 
 
Malta 

Poland 

Annex 4 Comparison of VAT own resource bases for capped Member 
States in 2020 and 2023   

Country 

Before 
capping 

2020 

After 
capping 

Difference 

Before 
capping 

2023 

After 
capping 

Difference 

Croatia 

Cyprus 

EUR bn 

EUR bn 

% 

EUR bn 

EUR bn 

% 

33.212 

24.518 

-26% 

43.376 

36.747 

-15% 

15.360 

9.834 

-36% 

19.320 

13.391 

-31% 

Luxembourg 

30.402 

21.357 

-30% 

41.205 

27.719 

-33% 

9.183 

5.784 

-37% 

9.745 

8.403 

-14% 

254.114 

248.794 

Portugal 

102.256 

97.793 

Slovenia 

N/A 

N/A 

-2% 

-4% 

N/A 

359.996 

351.380 

N/A 

N/A 

31.842 

31.759 

-2% 

N/A 

0% 

Source: Definitive adoption (EU/Euratom) 2021/118 of amending budget No 9 of the European Union for the 
financial year 2020; Definitive adoption (EU/Euratom) 2023/2750 of amending budget No 4 of the European 
Union for the financial year 2023. 

Note: The capping does not apply to the other Member States as their VAT base is below 50% of their GNI. 

29 

 
 
 
 
 
 
Annex 5 Evolution of VAT bases per Member State (EUR billion) 

Member 
State 

Belgium 

Bulgaria 

Czechia 

Denmark 

Germany 

Estonia 

Ireland 

Greece 

Spain 

France 

Croatia 

Italy 

Cyprus 

Latvia 

Lithuania 

Luxembourg 

Hungary 

Malta 

Netherlands 

Austria 

Poland 

Portugal 

Romania 

Slovenia 

Slovakia 

Finland 

Sweden 

Total 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

177 

187 

195 

196 

171 

207 

22 

70 

24 

81 

26 

87 

29 

92 

29 

89 

34 

99 

105 

110 

115 

118 

114 

148 

222 

40 

118 

141 

1 300 

1 357 

1 407 

1 457 

1 432 

1 500 

1 702 

11 

86 

70 

12 

88 

74 

13 

94 

79 

13 

78 

69 

15 

96 

74 

508 

564 

564 

500 

578 

17 

117 

89 

659 

1 057 

1 104 

1 113 

1 043 

1 209 

1 314 

30 

702 

14 

11 

17 

27 

48 

7 

303 

168 

224 

99 

68 

20 

31 

96 

33 

713 

16 

12 

18 

28 

54 

8 

326 

173 

242 

104 

78 

22 

34 

100 

206 

37 

733 

16 

13 

20 

30 

60 

9 

335 

178 

252 

113 

82 

22 

36 

105 

208 

31 

645 

16 

13 

18 

30 

57 

8 

329 

173 

238 

103 

78 

20 

37 

102 

219 

35 

764 

16 

14 

24 

35 

60 

7 

381 

184 

276 

106 

86 

24 

40 

114 

230 

40 

897 

19 

18 

29 

40 

70 

9 

431 

212 

315 

127 

102 

27 

45 

121 

234 

201 

205 

5 231 

5 565 

5 839 

6 006 

5 654 

6 355 

7 154 

10 

78 

70 

495 

989 

28 

659 

12 

11 

15 

27 

44 

7 

290 

159 

171 

91 

62 

19 

28 

93 

Source: Member States VAT statements for financial years 2016-2022 

30 

 
 
 
 
Annex 6 Evolution of VAT balances (EUR million)* 

Member State 

2016 

2017 

2018 

2019 

2020  2021 

2022 

Belgium 

Bulgaria 

Czechia 

Denmark 

Germany 

Estonia 

Ireland 

Greece 

Spain 

France 

Croatia 

Italy 

Cyprus 

Latvia 

Lithuania 

Luxembourg 

Hungary 

Malta 

Austria 

Poland 

Portugal 

Romania 

Slovenia 

Slovakia 

Finland 

Sweden 

Total 

12.33 

15.02 

15.37 

-8.42  -57.72 

31.76 

-13.23 

2.32 

4.58 

1.92 

4.68 

5.46 

5.12 

20.69 

10.67 

8.35 

-4.18 

7.14 

9.59 

4.54 

2.63 

-21.97 

-9.11  25.42 

71.18 

8.46 

20.28 

4.42 

-6.57 

14.07 

14.67 

-3.28  106.98 

104.48 

268.70 

0.14 

1.09 

0.49 

0.65 

0.32 

3.08 

-9.95 

0.84 

17.06 

2.03  -41.81 

11.46 

-53.43 

-12.05 

-4.82 

14.16 

0.07 

-42.82 

3.00 

27.42 

41.17 

67.71 

-9.52  128.69 

85.19  -73.72 

78.88 

160.69 

58.70 

98.94  111.62 

57.41  27.59 

253.03 

322.78 

2.75 

2.88 

2.55 

2.99  11.28 

9.02 

11.13 

262.80  145.51 

87.06 

48.96  -15.63 

230.68 

580.28 

1.49 

2.37 

1.82 

1.54 

1.13 

0.71 

3.49 

2.94 

2.26 

1.48 

2.32 

3.15 

3.25 

1.96 

1.39 

3.08 

0.74 

10.26 

3.28 

4.75 

-8.57 

-1.97  46.02 

11.57 

-1.77 

-1.54 

8.47 

11.37  13.65 

11.04 

0.81 

1.38 

-0.05 

2.76 

2.65 

2.53 

5.24 

-1.22 

5.51 

1.65 

2.32 

16.49 

-21.72  100.22  100.90  117.91  -12.60 

79.52 

9.11 

6.14 

9.15 

11.63 

2.66 

1.80 

19.50 

5.60 

10.15 

17.41 

-6.63 

29.37 

1.37 

2.74 

3.68 

0.78 

-4.69 

5.17 

4.19 

5.78 

12.34 

10.68 

8.82 

10.81 

4.63 

6.44 

17.26 

-8.04 

26.90 

3.61 

48.76 

39.83 

58.82 

20.91 

69.54 

2.74 

9.99 

5.12 

7.82 

3.68 

11.69 

-0.13 

7.16 

114.83 

6.85 

3.54 

-0.01 

7.86 

8.13 

15.35 

7.57 

400.15  423.73  524.96  402.03  67.72  1 108.22 

1 858.89 

Netherlands 

17.27 

-0.77 

7.72 

-1.04  17.14 

136.32 

Source: EU annual accounts and European Commission calculations 
*The balances exercise adjusts the data annually for the latest available year and for previous years. 

31 

 
 
 
Annex 7 Reservations per Member State  

Total number of reservations  
on 31 December 2023 

Of which, reservations 
covering 2021 and 2022 

Belgium 

Bulgaria 

Czechia 

Denmark 

Germany 

Estonia 

Ireland 

Greece 

Spain 

France 

Croatia 

Italy 

Cyprus 

Latvia 

Lithuania 

Luxembourg 

Hungary 

Malta 

Netherlands 

Austria 

Poland 

Portugal 

Romania 

Slovenia 

Slovakia 

Finland 

Sweden 

UK 

Total 

Source: European Commission 

1 

- 

- 

7 

8 

- 

9 

5 

- 

2 

2 

3 

- 

- 

- 

5 

- 

- 

4 

5 

- 

- 

11 

- 

- 

2 

1 

1 

66 

32 

- 

- 

- 

- 

- 

- 

- 

2 

- 

- 

- 

1 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

3 

- 

- 

1 

- 

- 

7 

 
 
  
 
Annex 8 Questionnaire for Member States  

Questionnaire for the report mentioned in Article 13a of Council Regulation 1553/89 on the definitive 
uniform arrangements for the collection of own resources accruing from VAT. 

1.  On a scale from 1 to 10 (where 10 is the highest score), how satisfied are you with the new 
system introduced by Council Regulation (EU, Euratom) 2021/769 of 30 April 2021 compared 
to the old one in terms of the time/resources needed for drawing up the annual statement and 
to prepare and take part in an inspection (full cycle)? 

2.  What are the features of the new VAT-based own resource system that you value the most? 

3.  What are the features of the new VAT-based own resource system that you value the least?  

4.  Did the introduction of the new system lead to any reduction in the number of people, workload, 

costs, or other resources?  

5.  If the answer to question 4 is yes, could you quantify the savings made possible by the reform 
related to the preparation of the statements as well as the preparation of and participation in 
inspections  (in  terms  of  full-time  equivalent  (FTE),  workload,  costs,  or  other  resources  as 
applicable)? 

33 

 
 
 
 
Annex 9 Weighted average rate percentages and status for 2016  

Member State 

WAR 2016 (%) 

Number of 
reservations 

Status 

Belgium 

Bulgaria 

Czechia 

Denmark 

Germany* 

Estonia 

Ireland* 

Greece 

Spain 

France 

Croatia* 

Italy 

Cyprus 

Latvia 

Lithuania 

Luxembourg 

Hungary 

Malta 

Netherlands 

Austria 

Poland 

Portugal 

Romania 

Slovenia 

Slovakia 

Finland 

Sweden 

16.1119% 

19.7258% 

18.9045% 

25.0000% 

16.7396% 

19.2187% 

16.2875% 

20.3585% 

14.5883% 

15.3663% 

22.0014% 

15.5720% 

13.6041% 

19.7217% 

19.7924% 

13.0210% 

24.3450% 

13.5716% 

16.4194% 

16.6805% 

17.0229% 

17.7076% 

18.6242% 

17.4687% 

19.1907% 

20.6655% 

21.1007% 

- 

- 

- 

- 

1 

- 

2 

- 

- 

- 

1 

- 

- 

- 

- 

3 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Definitive 

Definitive 

Definitive 

Definitive 

Provisional 

Definitive 

Provisional 

Definitive 

Definitive 

Definitive 

Provisional 

Definitive 

Definitive 

Definitive 

Definitive 

Provisional 

Definitive 

Definitive 

Definitive 

Definitive 

Definitive 

Definitive 

Definitive 

Definitive 

Definitive 

Definitive 

Definitive 

Source: Member States VAT statements for financial year 2016.  

*The data presented in this Annex is from March 2024. Following inspections performed after March 2024, the 
percentage  for  Ireland  became  definitive  (the  new  percentage  is  16.2875).  In  addition,  the  provisional 
percentage for Germany changed to 16.7453 and for Croatia changed to 22.0578. 

34 

 
 
35 

 
 
 
 
Annex 10 List of Council Directives amending the VAT Directive since 
year 2016 

1.  Council  Directive  (EU)  2016/856  of  25  May  2016  amending  Directive  2006/112/EC  on  the 
common  system  of  value  added  tax,  as  regards  the  duration  of  the  obligation  to  respect  a 
minimum standard rate. 

2.  Council Directive (EU) 2016/1065 of 27 June 2016 amending Directive 2006/112/EC as regards 

the treatment of vouchers. 

3.  Council Directive (EU) 2017/2455 of 5 December 2017 amending Directive 2006/112/EC and 
Directive 2009/132/EC as regards certain value added tax obligations for supplies of services 
and distance sales of goods. 

4.  Council Directive (EU) 2018/912 of 22 June 2018 amending Directive 2006/112/EC on the common 

system of value added tax as regards the obligation to respect a minimum standard rate. 

5.  Council Directive (EU) 2018/1695 of 6 November 2018 amending Directive 2006/112/EC on 
the common system of value added tax as regards the period of application of the optional 
reverse charge mechanism in relation to supplies of certain goods and services susceptible to 
fraud and of the Quick Reaction Mechanism against VAT fraud. 

6.  Council Directive (EU) 2018/1713 of 6 November 2018 amending Directive 2006/112/EC as 

regards rates of value added tax applied to books, newspapers and periodicals. 

7.  Council Directive (EU) 2018/1910 of 4 December 2018 amending Directive 2006/112/EC as 
regards the harmonisation and simplification of certain rules in the value added tax system for 
the taxation of trade between Member States. 

8.  Council Directive (EU) 2019/475 of 18 February 2019 amending Directives 2006/112/EC and 
2008/118/EC as regards the inclusion of the Italian municipality of Campione d'Italia and the 
Italian  waters  of  Lake  Lugano  in  the  customs  territory  of  the  Union  and  in  the  territorial 
application of Directive 2008/118/EC. 

9.  Council Directive (EU) 2019/1995 of 21 November 2019 amending Directive 2006/112/EC as 
regards provisions relating to distance sales of goods and certain domestic supplies of goods. 

10. Council Directive (EU) 2019/2235 of 16 December 2019 amending Directive 2006/112/EC on 
the  common  system  of  value  added  tax  and  Directive  2008/118/EC  concerning  the  general 
arrangements for excise duty as regards defence efforts within the Union framework. 

11. Council  Directive  (EU)  2020/284  of  18  February  2020  amending  Directive  2006/112/EC  as 

regards introducing certain requirements for payment service providers. 

12. Council Directive (EU) 2020/1756 of 20 November 2020 amending Directive 2006/112/EC on 
the  common  system  of  value  added  tax  as  regards  the  identification  of  taxable  persons  in 
Northern Ireland. 

13. Council Directive (EU) 2020/2020 of 7 December 2020 amending Directive 2006/112/EC as 
regards temporary measures in relation to value added tax applicable to COVID-19 vaccines 
and in vitro diagnostic medical devices in response to the COVID-19 pandemic. 

14. Council Directive (EU) 2021/1159 of 13 July 2021 amending Directive 2006/112/EC as regards 
temporary exemptions on importations and on certain supplies, in response to the COVID-19 
pandemic. 

36 

 
 
15. Council Directive (EU) 2022/542 of 5 April 2022 amending Directives 2006/112/EC and (EU) 

2020/285 as regards rates of value added tax. 

16. Council Directive (EU) 2022/890 of 3 June 2022 amending Directive 2006/112/EC as regards 
the extension of the application period of the optional reverse charge mechanism in relation to 
supplies  of  certain  goods  and  services  susceptible  to  fraud  and  of  the  Quick  Reaction 
Mechanism against VAT fraud. 

37 

 
 
 
 
 
Annex 11 VAT rates applicable in the Member States 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

BE 

6%; 12%; 
21% 

6%; 12%; 21%  6%; 12%; 21%  6%; 12%; 21% 

6%; 12%; 21% 

6%; 12%; 21% 

6%; 12%; 21%  6%; 12%; 21% 

BG 

9%; 20% 

9%; 20% 

9%; 20% 

9%; 20% 

9%; 20% 

9%; 20% 

9%; 20% 

9%; 20% 

CZ 

DK 

10%; 15%; 
21% 

10%; 15%; 21%  10%; 15%; 21%  10%; 15%; 21%  10%; 15%; 21% 

10%; 15%; 21%  10%; 15%; 21%  10%; 15%; 21% 

25% 

25% 

25% 

25% 

25% 

25% 

25% 

25% 

DE 

7%; 19% 

7%; 19% 

7%; 19% 

7%; 19% 

7%; 19% 

5/7%; 16/19% 

7%; 19% 

7%; 19% 

EE 

9%; 20% 

9%; 20% 

9%; 20% 

9%; 20% 

9%; 20% 

9%; 20% 

5%; 9%; 20% 

5%; 9%; 20% 

IE 

EL 

ES 

FR 

HR 

IT 

4,8%; 9%; 
13,5%; 23% 
6%; 13%; 
24% 
4%; 10%; 
21% 
2.1%; 5.5%; 
10%, 20% 
5%; 13%; 
25% 
4%; 5%; 10%; 
22% 

4,8%; 9%; 
13,5%; 23% 

4,8%; 9%; 
13,5%; 23% 

4,8%; 9%; 
13,5%; 23% 

4,8%; 9%; 13,5%; 
23/21% 

4,8%; 9%; 13,5%; 
21/23% 

4,8%; 9%; 
13,5%; 23% 

4,8%; 9%; 
13,5%; 23% 

6%; 13%; 24%  6%; 13%; 24%  6%; 13%; 24% 

6%; 13%; 24% 

6%; 13%; 24% 

6%; 13%; 24%  6%; 13%; 24% 

4%; 10%; 21%  4%; 10%; 21%  4%; 10%; 21% 

4%; 10%; 21% 

4%; 10%; 21% 

4%; 10%; 21%  4%; 10%; 21% 

2.1%; 5.5%; 
10%, 20% 

2.1%; 5.5%; 
10%, 20% 

2.1%; 5.5%; 
10%, 20% 

2.1%; 5.5%; 10%, 
20% 

2.1%; 5.5%; 10%, 
20% 

2.1%; 5.5%; 
10%, 20% 

2.1%; 5.5%; 
10%, 20% 

5%; 13%; 25%  5%; 13%; 25%  5%; 13%; 25% 

5%; 13%; 25% 

5%; 13%; 25% 

5%; 13%; 25%  5%; 13%; 25% 

4%; 5%; 10%; 
22% 

4%; 5%; 10%; 
22% 

4%; 5%; 10%; 
22% 

4%; 5%; 10%; 
22% 

4%; 5%; 10%; 
22% 

4%; 5%; 10%; 
22% 

CY  5%; 9%; 19%  5%; 9%; 19% 

5%; 9%; 19% 

5%; 9%; 19% 

5%; 9%; 19% 

5%; 9%; 19% 

5%; 9%; 19% 

4%; 5%; 10%; 
22% 
3%;5%; 9%; 
19% 

LV 

12%; 21% 

12%; 21% 

12%; 21% 

5%; 12%; 21% 

5%; 12%; 21% 

5%; 12%; 21% 

5%; 12%; 21%  5%; 12%; 21% 

38 

 
 
 
2016 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

LT  5%; 9%; 21%  5%; 9%; 21% 

5%; 9%; 21% 

5%; 9%; 21% 

5%; 9%; 21% 

5%; 9%; 21% 

5%; 9%; 21% 

5%; 9%; 21% 

LU 

HU 

3%; 8%; 14%; 
17% 
5%; 18%; 
27% 

3%; 8%; 14%; 
17% 

3%; 8%; 14%; 
17% 

3%; 8%; 14%; 
17% 

3%; 8%; 14%; 
17% 

3%; 8%; 14%; 
17% 

3%; 8%; 14%; 
17% 

3%; 7%; 13%; 
16% 

5%; 18%; 27%  5%; 18%; 27%  5%; 18%; 27% 

5%; 18%; 27% 

5%; 18%; 27% 

5%; 18%; 27%  5%; 18%; 27% 

MT  5%; 7%; 18%  5%; 7%; 18% 

5%; 7%; 18% 

5%; 7%; 18% 

5%; 7%; 18% 

5%; 7%; 18% 

5%; 7%; 18% 

5%; 7%; 18% 

NL 

6%; 21% 

6%; 21% 

6%; 21% 

9%; 21% 

9%; 21% 

9%; 21% 

9%; 21% 

9%; 21% 

AT 

PL 

PT 

10%; 13%; 
20% 
5%; 18%; 
23% 
6%; 13%; 
23% 

10%; 13%; 20%  10%; 13%; 20%  10%; 13%; 20% 

5%, 10%; 13%; 
20% 

5%, 10%; 13%; 
20% 

10%; 13%; 20%  10%; 13%; 20% 

5%; 18%; 23%  5%; 18%; 23%  5%; 18%; 23% 

5%; 18%; 23% 

5%; 18%; 23% 

5%; 18%; 23%  5%; 18%; 23% 

6%; 13%; 23%  6%; 13%; 23%  6%; 13%; 23% 

6%; 13%; 23% 

6%; 13%; 23% 

6%; 13%; 23%  6%; 13%; 23% 

RO  5%; 9%; 20%  5%; 9%; 19% 

5%; 9%; 19% 

5%; 9%; 19% 

5%; 9%; 19% 

5%; 9%; 19% 

5%; 9%; 19% 

5%; 9%; 19% 

SI 

9,5%; 22% 

9,5%; 22% 

9,5%; 22% 

9,5%; 22% 

5%; 9,5%; 22% 

5%; 9,5%; 22% 

5%; 9,5%; 22%  5%; 9,5%; 22% 

SK 

10%; 20% 

10%; 20% 

10%; 20% 

10%; 20% 

10%; 20% 

10%; 20% 

10%; 20% 

10%; 20% 

FI 

SE 

10%; 14%; 
24% 
6%; 12%; 
25% 

10%; 14%; 24%  10%; 14%; 24%  10%; 14%; 24%  10%; 14%; 24% 

10%; 14%; 24%  10%; 14%; 24%  10%; 14%; 24% 

6%; 12%; 25%  6%; 12%; 25%  6%; 12%; 25% 

6%; 12%; 25% 

6%; 12%; 25% 

6%; 12%; 25%  6%; 12%; 25% 

Source: Taxes in Europe database, previously published list of VAT rates, publicly available information.

39 

 
 
 
 
Annex 12 Weighted average rates in Member States, 2016-2020, in % 

Member State 

2016 

2017 

2018 

2019 

2020 

Belgium 

Bulgaria 

Czechia 

Denmark 

Germany 

Estonia 

Ireland 

Greece 

Spain 

France 

Croatia 

Italy 

Cyprus 

Latvia 

Lithuania 

Luxembourg 

Hungary 

Malta 

16.1119 

16.0177 

15.9033 

16.0603 

15.9622 

19.7258 

19.7290 

19.7185 

19.7149 

19.5845 

18.9045 

18.8680 

18.8187 

18.7778 

18.4913 

25.0000 

25.0000 

25.0000 

25.0000 

25.0000 

16.7396 

16.7185 

16.7355 

16.7636 

15.4041 

19.2187 

19.2257 

19.1851 

19.1873 

19.1596 

16.2875 

16.3228 

16.5002 

16.5307 

16.3979 

20.3585 

20.6506 

20.6097 

19.9687 

18.4146 

14.5883 

14.4696 

14.3250 

14.6177 

14.5594 

15.3663 

15.2702 

15.2840 

15.4303 

15.379 

22.0014 

21.4101 

21.5697 

20.3610 

21.0095 

15.5720 

15.4768 

15.4872 

15.5858 

15.5942 

13.6041 

13.2560 

12.5966 

12.7172 

13.5437 

19.7217 

19.8917 

19.6934 

19.7677 

19.7213 

19.7924 

20.0566 

19.8387 

19.8857 

19.8848 

13.0210 

12.8644 

13.4055 

13.2147 

12.931 

24.3450 

23.8176 

22.9542 

23.1810 

22.8911 

13.5716 

13.6878 

13.5302 

13.5795 

13.3496 

Netherlands 

16.4194 

16.4882 

16.1383 

16.9233 

17.0848 

Austria 

Poland 

Portugal 

Romania 

Slovenia 

Slovakia 

Finland 

Sweden 

16.6805 

16.6223 

16.8065 

16.6780 

15.892 

17.0229 

16.9906 

16.9136 

17.0331 

17.1593 

17.7076 

17.0838 

17.0488 

16.8203 

16.942 

18.6242 

16.9892 

16.7183 

16.8408 

16.4777 

17.4687 

17.4037 

17.2777 

17.3087 

17.2753 

19.1907 

19.2161 

19.1329 

18.9486 

18.7725 

20.6655 

20.6719 

20.6995 

20.6476 

20.6691 

21.1007 

21.1800 

21.2425 

21.2911 

21.2327 

Source: Member States’ VAT statements for the financial years 2016- 2020. 

40 

 
 
 
 
 
 
Annex  13  Simplified  weighted  average  rate  of  2020  compared  to 
actual weighted average rate of 2020 

To  exemplify  and  test  the  accuracy  of  the  simplified  weighted  average  rate,  this  annex  presents 
calculations of the simplified weighted average rate 2020 using the weighted average rate of 2019 
as the basis.  

S-WAR2020 = WAR2019   x      HH-WAR2020   
                                          HH-WAR2019 

To  verify  the  accuracy  of  the  estimate,  the  table  includes  a  comparison  with  the  actual  2020 
weighted average rate, reported by Member States in their financial statements and verified by the 
Commission. For most countries, the  simplified weighted average rate closely matches the actual 
weighted average rate, with a difference of less than 0.2 percentage points between the two. When 
weighted with the VAT base of the country in question, the simplified weighted average rate differs 
on average by only 0.10 percentage points from the actual weighted average rate of 2020. 

Had this simplified method been used instead of the full calculation of the weighted average rate, 
the  financial  impact  would  have  been  minimal.  Member  States’  total  contributions  would  have 
decreased by only EUR 14.9 million in 2020. For most Member States, contributions would have been 
lower or unaffected due to the capping mechanism. 

Member State 

Simplified 
WAR 2020 

Actual 
WAR 
2020 

Difference 
(percentage 
points) 

Own resource 
impact of using 
simplified WAR 
(EUR Mio.) 

Relative 
own 
resource 
impact 

Belgium 

Bulgaria 

Czechia 

Denmark 

Germany* 

Estonia 

Ireland 

Greece 

Spain 

France 

Croatia 

Italy 

Cyprus 

Latvia 

16.08% 

15.96% 

19.70% 

19.58% 

18.54% 

18.49% 

25.00% 

25.00% 

16.66% 

15.40% 

19.19% 

19.16% 

16.49% 

16.40% 

0.12% 

0.12% 

0.05% 

0.00% 

1.25% 

0.03% 

0.09% 

3.8 

0.0 

0.7 

0.0 

321.9 

0.1 

1.3 

0.7% 

0.0% 

0.3% 

0.0% 

7.5% 

0.1% 

0.5% 

17.09% 

18.41% 

-1.32% 

-16.0 

-7.7% 

14.59% 

14.56% 

15.42% 

15.38% 

19.48% 

21.01% 

15.58% 

15.59% 

12.72% 

13.54% 

19.79% 

19.72% 

0.03% 

0.05% 

-1.53% 

-0.01% 

-0.82% 

0.06% 

0.02% 

41 

3.1 

9.2 

0.0 

-1.2 

0.0 

0.1 

0.1 

0.2% 

0.3% 

0.0% 

-0.1% 

0.0% 

0.3% 

0.1% 

Lithuania 

19.91% 

19.88% 

 
 
 
 
 
 
Member State 

Simplified 
WAR 2020 

Actual 
WAR 
2020 

Difference 
(percentage 
points) 

Luxembourg 

13.36% 

12.93% 

0.42% 

Hungary 

Malta 

22.73% 

22.89% 

-0.16% 

13.52% 

13.35% 

0.17% 

Netherlands 

16.94% 

17.08% 

-0.15% 

Austria 

Poland 

Portugal 

Romania 

Slovenia 

Slovakia 

Finland 

Sweden 

EU average  

EU weighted 
average  
(by VAT Base) 

Total 

16.66% 

15.89% 

17.05% 

17.16% 

16.79% 

16.94% 

16.70% 

16.48% 

17.31% 

17.28% 

18.62% 

18.77% 

20.66% 

20.67% 

21.29% 

21.23% 

0.77% 

-0.11% 

-0.15% 

0.22% 

0.03% 

-0.15% 

-0.01% 

0.06% 

0.25% 

0.10% 

Own resource 
impact of using 
simplified WAR 
(EUR Mio.) 

Relative 
own 
resource 
impact 

0.0% 

-0.7% 

0.0% 

-0.9% 

4.7% 

-0.6% 

0.0% 

1.3% 

0.2% 

-0.8% 

0.0% 

0.3% 

0.0 

-1.2 

0.0 

-8.5 

24.1 

-4.5 

0.0 

3.0 

0.1 

-0.9 

-0.1 

1.7 

2.9 

14.9 

Sources: Member States’ VAT statements for the financial years 2019 and 2020, EUROMOD (see 
explanation below) consumption data calibrated to Eurostat household consumption data by COICOP 
(classification of individual consumption according to purpose) 3-digit consumption category for the years 
2017-2018, Taxes in Europe database, VAT rates by COICOP 5-digit consumption category for 2019-2020. 
Own calculations. 

*: The large difference between the S-WAR and actual WAR for Germany can be explained by the reduction 
of the standard and reduced VAT rates in 2020, not reflected in the data underlying the S-WAR. Germany is 
therefore excluded from averages and totals. 

42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annex 14 Distribution of consumption subject to VAT by category, 2020 

Household 
consumption 

Government 
purchases 

Gross fixed 
capital 
formation 

Intermediate 
consumption 

Belgium 

Bulgaria 

Czechia 

Denmark 

Germany 

Estonia 

Ireland 

Greece 

Spain 

France 

Croatia 

Italy 

Cyprus 

Latvia 

Lithuania 

Luxembourg 

Hungary 

Malta 

Netherlands 

Austria 

Poland 

Portugal 

Romania 

Slovenia 

Slovakia 

Finland 

Sweden 

61% 

75% 

59% 

- 

65% 

64% 

66% 

85% 

74% 

62% 

73% 

72% 

59% 

75% 

81% 

56% 

66% 

76% 

60% 

77% 

73% 

75% 

43% 

70% 

69% 

62% 

58% 

4% 

7% 

7% 

- 

5% 

10% 

7% 

7% 

7% 

3% 

8% 

7% 

3% 

8% 

6% 

3% 

12% 

9% 

8% 

7% 

7% 

7% 

5% 

9% 

6% 

18% 

12% 

16% 

5% 

13% 

- 

16% 

17% 

16% 

4% 

11% 

17% 

9% 

12% 

14% 

11% 

8% 

6% 

15% 

9% 

16% 

9% 

9% 

6% 

14% 

10% 

10% 

9% 

18% 

18% 

14% 

21% 

- 

14% 

9% 

12% 

4% 

8% 

17% 

9% 

9% 

24% 

6% 

5% 

7% 

7% 

6% 

16% 

7% 

11% 

12% 

38% 

10% 

15% 

11% 

13% 

Sources: Member States’ VAT statements for the financial year 2020. Own calculations. 

43 

 
 
 
 
 
Annex  15  Detailed  explanation  of  the  calculation  of  the  household 
weighted average rate (HH-WAR)  

This annex gives a detailed explanation of the weighted average rate for household consumption, 
referred  to  as  the  household  weighted  average  rate.  It  is  the  main  component  in  calculating  the 
simplified weighted average rate, i.e. the simplified weighted average rate is calculated by applying 
the  household  weighted  average  rate’s  growth  rate  to  the  (actual)  weighted  average  rate  of  a 
reference year. This household weighted average rate has been calculated by the JRC in Seville.  

Its  underlying  consumption  expenditure  data  are  derived  from  EUROMOD,  32  which  operates  on 
microdata from the EU statistics on income and living conditions (EU-SILC) and the Household Budget 
Survey (waves 2019 and 2015, respectively, for most countries). These results can be calibrated to 
reflect national account figures available from Eurostat, termed ‘Final consumption expenditure of 
households by consumption purpose (COICOP 3-digit)’. To calculate the weighted average rate in year 
n,  Member  States  use  consumption  data  from  year  n-2.  This  means  that  national  accounts 
consumption data from year n-2 were used for the calibration of the consumption data. 

The  estimation  of  the  weighted  average  rate  also  requires  VAT  rates  per  consumption  category, 
collected from the Taxes in Europe database and verified against national legislation. To each COICOP 
5-digit category (approximately 200 categories for most countries ), a single VAT rate is manually 
given.  If  multiple  rates  apply  (for  example,  because  there  are  various  products  within  the  5-digit 
category bundle, or rates differ throughout the year), the most prevalent rate is used33. 

Exempted consumption categories, which do not contribute to the VAT base, are identified using the 
document ‘VAT rates applied in the Member States of the European Union’ from DG TAXUD, for 2019, 
and the VAT Directive 2006/112. These exemptions are assumed to remain constant over the years.  

The household weighted average rate for each Member State is then estimated as the implicit rates 
dividing the VAT liabilities with consumption expenditures of private households: 

𝐻𝐻‑𝑊𝐴𝑅 =

𝑉𝐴𝑇𝑁𝐴
(𝐸𝑋𝑃𝑁𝐴 − 𝑉𝐴𝑇𝑁𝐴)

Where HH-WAR is the household weighted average rate for a given Member State and year; 𝑉𝐴𝑇𝑁𝐴 
and  𝐸𝑋𝑃𝑁𝐴  are,  respectively,  the  total  VAT  liabilities  and  total  consumption  expenditure,  of  any 
consumption expenditure not exempt from VAT. Consumption categories with zero rates are included. 
𝑁𝐴 indicates that 𝑉𝐴𝑇 and 𝐸𝑋𝑃 have been calibrated to national accounts. 

32 EUROMOD is a tax-benefit microsimulation model for the EU that enables researchers and policy analysts to 
calculate, comparably, the effects of  taxes and benefits on household incomes and work incentives for the 
population of each country and for the EU as a whole. The results presented here are  based on EUROMOD 
version  i6.120.  Originally  maintained,  developed  and  managed  by  the  Institute  for  Social  and  Economic 
Research  (ISER),  since  2021  EUROMOD  has  been  maintained,  developed  and  managed  by  the  JRC,  in 
collaboration with Eurostat and national teams from EU countries. We are indebted to the many people who 
have  contributed  to  the  development  of  EUROMOD.  The  results  and  their  interpretation  are  the  author’s(’) 
responsibility. More info: https://euromod-web.jrc.ec.europa.eu/. 

33 Rates for 2024 were reviewed by experts from each Member State. However, they were  still provisional at 
the time of calculation (July 2024) and therefore subject to checks, revisions and adjustments until the next 
EUROMOD stable release in early 2025.  

44 

 
 
 
 
 
 
Annex  16  Simplified  weighted  average  rates  for  2021-2024,  using 
2019 as the reference 

Member State 

2021 

2022 

2023 

2024 

Belgium 

Bulgaria 

Czechia 

Denmark 

Germany 

Estonia 

Ireland 

Greece 

Spain 

France 

Croatia 

Italy 

Cyprus 

Latvia 

Lithuania 

Luxembourg 

Hungary 

Malta 

Netherlands 

Austria 

Poland 

Portugal 

Romania 

Slovenia 

Slovakia 

Finland 

Sweden 

16.04% 

15.81% 

15.18% 

14.97% 

18.98% 

19.32% 

18.69% 

18.54% 

17.62% 

17.97% 

17.93% 

17.55% 

25.00% 

25.00% 

25.00% 

25.00% 

15.76% 

15.82% 

15.85% 

16.24% 

19.18% 

19.17% 

19.13% 

19.88% 

15.07% 

15.67% 

15.19% 

16.11% 

17.12% 

17.46% 

17.41% 

17.33% 

14.24% 

14.09% 

13.63% 

14.46% 

15.40% 

15.39% 

15.56% 

15.98% 

19.45% 

18.06% 

18.17% 

18.27% 

15.53% 

15.03% 

15.06% 

14.62% 

12.66% 

12.95% 

12.76% 

11.91% 

19.80% 

19.71% 

19.81% 

19.92% 

19.84% 

19.47% 

19.38% 

19.92% 

13.34% 

13.46% 

13.03% 

13.66% 

22.63% 

23.30% 

23.03% 

22.50% 

13.50% 

14.31% 

13.84% 

14.05% 

16.86% 

17.19% 

17.31% 

16.96% 

15.40% 

16.84% 

17.11% 

16.52% 

16.97% 

12.99% 

15.47% 

17.52% 

16.53% 

16.62% 

16.25% 

16.31% 

16.73% 

16.67% 

16.99% 

16.84% 

17.27% 

17.23% 

17.52% 

17.59% 

18.63% 

18.54% 

17.87% 

17.38% 

20.66% 

20.66% 

20.78% 

20.30% 

21.29% 

21.53% 

21.78% 

21.53% 

Simple average 

17.46% 

17.42% 

17.40% 

17.48% 

Average, weighted by VAT Base 

16.34% 

16.14% 

16.23% 

16.45% 

Source: European Commission calculations 

45