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EU Customs Union: halves membership rebate for Brexit

  • EU VAT
  • 19 May 2018 | Richard Asquith

EU Customs Union: halves membership rebate for Brexit

The European Commission has proposed that it halves the customs duties rebates to members of the EU Customs Union. The EU currently retains €20billion for its own income of the €25billion in collected common tariffs. The proposal is to raise this to €22.5billion.

The extra funding will be retained by the EU as part of its €1.3 trillion seven-year budget which commences in 2022 after the end of the UK’s Brexit transition period.

The EU has to fill a Brexit deficit of up to €15billion per annum. Member states still have to review the measures, and will experience stiff opposition from the few net budget contributors, led by the Netherlands.

EU fills Brexit budget hole

The EC has proposed the following own-revenue generating measures including:

  • Cutting the share of customs duties due back to member states from 20% to 10% of import collections
  • Taxing member states 20% of their carbon emissions auction revenues
  • Introducing a €0.80 per kilo levy on countries’ non-recycled plastic packaging
  • Charging 3% on net Corporate Tax base calculations (CCCTB)
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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.