Where does the EU funding money come from?
Funded (99%) from the EU's own resources, supplemented by other sources of revenue. These include the following three
1) Traditional own resources
Other Revenue
The budget also has other sources of revenue, e.g.:
Funded (99%) from the EU's own resources, supplemented by other sources of revenue. These include the following three
1) Traditional own resources
- mainly customs duties on imports from outside the EU and sugar levies (customs duties on imports of certain agricultural produce from non-EU countries (produce covered by an EU support regime, as well as levies (paid by producers) on sugar, isoglucose and inulin syrup).
- EU governments keep 25% to cover the cost of collection.
2) Own resource from value added tax (VAT)
- A standard percentage is levied on the harmonised VAT base of each EU country. The VAT resource accounts for around €14bn. The VAT base to be taxed is capped at 50% of GNI for each country. This rule is intended to prevent less prosperous countries having to pay a disproportionate amount (in such countries consumption – and so VAT – tend to account for a higher percentage of national income).
3) Own resource based on gross national income (GNI)
- A standard percentage is levied on the GNI (gross national income) of each EU country. It is used to balance revenue and expenditure, i.e. to fund the part of the budget not covered by other sources of income.
Other Revenue
The budget also has other sources of revenue, e.g.:
- taxes on EU staff salaries
- contributions from non-EU countries to certain programmes
- fines on companies for breaching competition laws, etc.
