David Cameron insists there is "no pressing need" for the UK to pay £1.7bn to the EU - despite a warning of a substantial fine.
The surcharge was made public at an EU summit last week, but the Prime Minister said the UK would not meet the 1 December deadline.
EU Budget Commissioner Jacek Dominik has told Sky's Ian King Live the UK could face a "significant" fine if the payment is delayed.
But in a statement to the Commons, Mr Cameron said: "The scale and timing of the demand is not acceptable.
"It cannot just be nodded through by the EU bureaucracy - it is British taxpayers' money.
"There are fundamental issues of the fairness of these payments.
"We will be challenging this in every way possible. We want to check on the way the statistics were arrived at, the methodology that was used. We will crawl through this in exhaustive detail."
The demand is the result of improvements to Britain's economy since 1995 and would add almost a fifth to the UK's annual contribution of £8.6bn.
Outgoing Commission President Jose Manuel Barroso has insisted Brussels is only following the procedures created by member states to balance the EU's books each year.
Mr Cameron has called for an emergency meeting of EU finance ministers to discuss the surcharge - and told the Commons he had been backed by Italy, Holland, Malta, Greece and others.
But Labour leader Ed Miliband told MPs he wrote to the Treasury Committee seven months ago about a potential surcharge - and accused the Prime Minister of "sleeping at the wheel".
"This is a familiar pattern with this Prime Minister: months and months when he doesn't do the work followed by last-minute pyrotechnics when it all goes wrong," he said.
Preliminary figures seen by the Financial Times suggest Britain is facing the largest adjustment in the amount it must pay compared to other member states.
The Netherlands is being asked for an extra £509m, but by contrast France is due to receive a rebate of £800m, Germany £618m, and Poland £250m.
Britain's surcharge is due for payment just days after the Rochester and Strood by-election, which hangs on a knife edge with anti-EU UKIP threatening to wrest the seat from the Tories.
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