EUABC A dictionary on words related to the EU

Own income/Own resources

: (Photo: European Commission)

The EU is financed by, so-called, 'own income'. This consists of revenue from customs duties, agricultural levies, 1% of the VAT-base in each member country and a contribution from each country related to its GNP. The total own income may not exceed 1.27% of the total GNP of all Member States.

The different types of income of the EU are called 'own resources' since they legally belong to the EU.

Custom duties are collected by the Member States on behalf of the EU. The EU pays the Member States 10% of the sum collected to cover the cost of collection. The incomes are decided by the Member States in the Council. The EU Parliament has no say.

The future

The introduction of an EU tax is envisaged. But, while the Commission strongly pushes for its introduction, an EU tax is fiercely resisted by many Member States.

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