Item III.6: VAT based 3rd Resource Training on general introduction to ESA 2010 Luxembourg, 9 - 10 December 2013 Eurostat, JMO M4

ESA 95 VAT- based third EU own resource which is collected in Member States by government and remitted to the Institutions of the European Union was recorded as taxes on production and imports (D2) directly paid to the rest of the world

ESA 2010 VAT-based third EU own resource is recorded as a current transfer paid by the government of each Member State to the Institutions of the European Union This contribution to the budget of the Institutions of the European Union is recorded under the heading D76 “VAT and GNI-based EU own resources”

Consequence of the change new treatment does not impact GDP but in the passage from GDP to GNI, the amounts of taxes on production and imports (D2) payable to the rest of the world will decrease GNI will increase by the amount of the VAT based third EU own resource

Numerical example: ESA 95 Source: GNI Inventory Sweden, version 5

Numerical example: ESA 2010 VAT- based third EU own resource remitted to the Institutions of the European Union is 8000 Calculate GNI on an ESA 2010 basis