Strategy & Operations » Governance » UK taxpayers second-highest contributors of VAT to EU budget

CLOSE TO A FIFTH of VAT contributions to the EU budget are generated by UK taxpayers, according to research by lobby group Business for Britain.

The body, which campaigns for a “fairer” deal for the UK from Europe, calculated that between 2007 and 2013, 17.7% of EU-wide VAT contributions came from the UK, equating to £246 per person and £78 more than the EU average.

Heavily-taxed France was the only country to pay more VAT to the EU, putting in 18.3%.

The group also highlighted that the European Commission has called for greater use of the standard rate of VAT and a EU rate of VAT. They estimate the removal of the zero- and reduced-rate of VAT would cost UK households up to £1,697 per year.

Business for Britain chief executive Matthew Elliott said: “Many people simply don’t realise every time they pay VAT some of that money goes straight to Brussels.”