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

For a given calendar year, the base for the VAT-based own resource shall be determined by dividing the total amount of net VAT receipts collected by a Member State from the transactions referred to in Article 2 during that year, corrected in accordance with paragraph 2 of this Article, by the definitive multi-annual weighted average rate, as calculated in accordance with the method set out in Article 4.

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

The amount determined by application of paragraph 1 of this Article shall be multiplied by the uniform call rate under point (b) of Article 2(1) of Decision (EU, Euratom) 2020/2053 to obtain the VAT-based own resource that is to be made available to the Union budget.

The VAT-based own resource shall be calculated on the basis of calendar years.

The definitive multi-annual weighted average rate shall be calculated on the basis of the method set out in paragraphs 3 to 8.

The definitive multi-annual weighted average rate shall be the percentage calculated by each Member State, respectively, for the financial year 2016, in accordance with the provisions of this Article as applicable before 1 January 2021.

The percentage in which the definitive multi-annual weighted average rate is expressed shall be calculated to the fourth decimal place.

The definitive multi-annual weighted average rate shall have been inspected and shall be free from notifications concerning outstanding points as referred to in Article 9(2).

A weighted average rate under notification shall be used until the points that were notified as referred to in Article 9(2) have been resolved, and shall be considered as the provisional multi-annual weighted average rate.

Once the points that were notified as referred to in Article 9(2) have been resolved, the resulting percentage shall replace the provisional multi-annual weighted average rate, and shall become the definitive multi-annual weighted average rate from the financial year 2021 onwards.

The budgetary implications of any difference between the provisional and the definitive multi-annual weighted average rate shall be addressed under the procedure outlined in Article 10b(5) of Council Regulation (EU, Euratom) No 609/2014 ([^E0003]) (the ‘yearly balance exercise’).

By 31 July of each year, Member States shall send the Commission a statement of the total amount of the base for the VAT-based own resource for the previous calendar year, determined in accordance with Article 3, to which the uniform call rate referred to in Article 1 is to be applied.

The statement referred to in paragraph 1 of this Article shall contain all the data used to determine the base that are required for the inspections referred to in Article 2(4) of Council Regulation (EU, Euratom) 2021/768 ([^E0006]).

The data used to determine the base for the VAT-based own resource shall be the most recent data available when the statement is produced.

Member States may request an extension of the time limit referred to in paragraph 1 of this Article if exceptional circumstances beyond their control make it impossible to perform the calculations in accordance with Article 3 and therefore to adhere to that time limit. Such a request shall be made to the Commission in writing and shall set out the reasons for the exceptional circumstances.

The Commission, after examining the request referred to in paragraph 4 of this Article, may grant a single extension of the time limit referred to in paragraph 1 of this Article for a maximum of two months. The Commission shall report the number of requests and its corresponding decisions to the committee referred to in Article 13(1) on an annual basis.

Any corrections to the statements referred to in Article 7(1) of this Regulation for previous financial years, for whatever reason, shall be made in agreement between the Commission and the Member State concerned.

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.

By 30 April of each year, each Member State shall inform the Commission of any solutions and related modifications that it proposes to adopt in order to determine the amounts referred to in points (a) and (b) of Article 3(2). The proposed solution shall indicate, where applicable, the nature of the data that the Member State considers appropriate, and shall include an estimate of the value of the base for the VAT-based own resource for each item.

The Commission may adopt implementing acts as regards the solutions and related modifications proposed by Member States in accordance with paragraph 1 of this Article. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 13(2), within 60 days after the committee referred to in Article 13(1) has delivered its opinion.

Following the inspections referred to in Article 2(4) of Regulation (EU, Euratom) 2021/768, the statement referred to in Article 7(1) of this Regulation shall be corrected as specified in Article 9 of this Regulation.

With respect to the definitive multi-annual weighted average rate referred to in Article 4(2), the Commission shall assess the corrections referred to in Article 9 submitted by Member States in order to resolve any notifications concerning outstanding points regarding the weighted average rate.

Each year, each Member State shall provide the Commission with information concerning all relevant changes to the administrative processes and procedures which it applies for the collection of VAT in comparison with the information that it previously submitted.

The Commission shall consider, together with the Member State concerned, whether the processes and procedures referred to in paragraph 1 can be improved.

Every five years, the Commission shall produce a report on the measures taken and progress made by Member States in relation to the collection of VAT and on any improvements.

The Commission shall be assisted by the Advisory Committee on Own Resources (ACOR/VAT) established by Article 7(1) of Regulation (EU, Euratom) 2021/768. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011 of the European Parliament and of the Council ([^E0007]).

Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.

Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

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

The report referred to in paragraph 1 shall 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.