The European Union value added tax (or EU VAT) is a value added tax on goods and services within the European Union (EU). The EU's institutions do not collect the tax, but EU member states are each required to adopt a value added tax that complies with the EU VAT code. Different rates of VAT apply in different EU member states, ranging from 15 to 27%. Some of the VAT collected by member states is used to fund the European Union as part of the system of "own resources".