VATcodexEU VAT case law · Court of Justice and General Court

Article 18 Sixth Directive 77/388/EEC

Rules governing the exercise of the right to deduct

Title XI · Deductions

Open in the compendium56 cases ↓

Repealed. The Sixth Directive 77/388/EEC was repealed with effect from 1 January 2007 and replaced by Directive 2006/112/EC. Most case law before that date cites it.

Text of Article 18

1.To exercise his right to deduct, the taxable person must:

(a)in respect of deductions under Article 17 (2) (a), hold an invoice, drawn up in accordance with Article 22 (3);

(b)in respect of deductions under Article 17 (2) (b), hold an import document, specifying him as consignee or importer, and stating or permitting calculation of the amount of tax due;

(c)in respect of deductions under Article 17 (2) (c), comply with the formalities established by each Member State;

(d)when he is required to pay the tax as a customer or purchaser where Article 21 (1) applies, comply with the formalities laid down by each Member State.

2.The taxable person shall effect the deduction by subtracting from the total amount of value added tax due for a given tax period the total amount of the tax in respect of which, during the same period, the right to deduct has arisen and can be exercised under the provisions of paragraph 1.

However, Member States may require that as regards taxable persons who carry out occasional transactions as defined in Article 4 (3), the right to deduct shall be exercised only at the time of the supply.

3.Member States shall determine the conditions and procedures whereby a taxable person may be authorized to make a deduction which he has not made in accordance with the provisions of paragraphs 1 and 2.

4.where for a given tax period the amount of authorized deductions exceeds the amount of tax due, the Member States may either make a refund or carry the excess forward to the following period according to conditions which they shall determine.

However, Member States may refuse to refund or carry forward if the amount of the excess is insignificant.

Consolidated version on EUR-Lex (CELEX 01977L0388-20060101). © European Union. Only the Official Journal is authentic.

Case law on Article 18: 56 cases

Judgments, orders and Advocate General opinions of the Court of Justice and the General Court that cite Article 18 of Sixth Directive 77/388/EEC, most recent first.

  1. C-167/26 RX Dyrektor Krajowej Informacji Skarbowej Opinion · 10 September 2026 · Poland · cites Article 18(2)
  2. C-565/24 P-GmbH & Co. KG (Coffee trips) Opinion · 27 November 2025 · cites Article 18(4)
  3. C-258/19 EUROVIA Judgment · 30 April 2020 · Hungary · cites Article 18(1)(a), (2)
  4. C-664/16 Vădan Opinion · 30 May 2018 · Romania · cites Article 18(1)(a)
  5. C-533/16 Volkswagen Opinion · 26 October 2017 · Slovakia
  6. C-38/16 Compass Contract Services Judgment · 14 June 2017 · United Kingdom
  7. C-516/14 Barlis 06 - Investimentos Imobiliários e Turísticos Opinion · 18 February 2016 · Portugal · cites Article 18(1)(a), (1)(d)
  8. C-518/14 Senatex Opinion · 17 February 2016 · Germany · cites Article 18(2)
  9. C-277/14 PPUH Stehcemp Judgment · 22 October 2015 · Poland · cites Article 18(1)(a)
  10. C-590/13 Idexx Laboratories Italia Judgment · 11 December 2014 · Italy · cites Article 18(1)(d)
  11. C-446/13 Fonderie 2A Opinion · 3 July 2014 · France · cites Article 18(2), (4)
  12. C-33/13 Jagiełło Order · 6 February 2014 · Poland
  13. C-271/12 Petroma Transports and Others Judgment · 8 May 2013 · Belgium · cites Article 18(1)(a)
  14. C-563/11 Forvards V Order · 28 February 2013 · Latvia
  15. C-104/12 Becker Judgment · 21 February 2013 · Germany · cites Article 18(1)(a)
  16. C-80/11 Mahagében and Dávid Judgment · 21 June 2012 · Hungary · cites Article 18(1)(a)
  17. C-414/10 Véleclair Judgment · 29 March 2012 · France · cites Article 18(1)(b), (2)
  18. C-218/10 ADV Allround Judgment · 26 January 2012 · Germany · cites Article 18(1)(a)
  19. C-520/10 Lebara Opinion · 8 December 2011 · United Kingdom · cites Article 18(1)(a)
  20. C-274/10 Commission v Hungary Judgment · 28 July 2011 · Hungary · cites Article 18(4)
  21. C-107/10 Enel Maritsa Iztok 3 Judgment · 12 May 2011 · Bulgaria · cites Article 18(2), (4)
  22. C-438/09 Dankowski Judgment · 22 December 2010 · Poland · cites Article 18(1)(a)
  23. C-540/09 Skandinaviska Enskilda Banken Opinion · 16 December 2010 · Sweden · cites Article 18(1)(a)
  24. C-392/09 Uszodaépítő Judgment · 30 September 2010 · Hungary · cites Article 18(1)
  25. C-368/09 Pannon Gép Centrum Judgment · 15 July 2010 · Hungary · cites Article 18(1), (1)(a)
  26. C-582/08 Commission v United Kingdom Opinion · 20 May 2010 · United Kingdom · cites Article 18(4)
  27. C-472/08 Alstom Power Hydro Judgment · 21 January 2010 · Latvia · cites Article 18(2), (3), (4)
  28. C-566/07 Stadeco Judgment · 18 June 2009 · Netherlands · cites Article 18(1)(a), (1)(b)
  29. C-302/07 J D Wetherspoon Opinion · 20 November 2008 · United Kingdom · cites Article 18(1)(a)
  30. C-25/07 Sosnowska Judgment · 10 July 2008 · Poland · cites Article 18(2), (4)
  31. C-95/07 Ecotrade Judgment · 8 May 2008 · Italy · cites Article 18(1)(d), (2), (3)
  32. C-368/06 Cedilac Judgment · 18 December 2007 · France · cites Article 18(2), (4)
  33. C-128/05 Commission v Austria Judgment · 28 September 2006 · Austria · cites Article 18(1)(a), (2)
  34. C-439/04 Kittel and Recolta Recycling Judgment · 6 July 2006 · Belgium · cites Article 18(1)
  35. C-184/04 Uudenkaupungin kaupunki Judgment · 30 March 2006 · Finland · cites Article 18(1), (2), (3)
  36. C-25/03 HE Judgment · 21 April 2005 · Germany · cites Article 18(1), (1)(a)
  37. C-33/03 Commission v United Kingdom Judgment · 10 March 2005 · United Kingdom · cites Article 18(1)(a), (3)
  38. C-152/02 Terra Baubedarf-Handel Judgment · 29 April 2004 · Germany · cites Article 18(1), (1)(a), (2)
  39. C-90/02 Bockemühl Judgment · 1 April 2004 · Germany · cites Article 18(1), (1)(a), (1)(d)
  40. C-78/02 Karageorgou and Others Opinion · 15 May 2003 · Greece · cites Article 18(1)(a)
  41. C-77/01 EDM Opinion · 12 September 2002 · Portugal · cites Article 18(2), (4)
  42. C-338/98 Commission v Netherlands Judgment · 8 November 2001 · Netherlands · cites Article 18(1), (1)(a), (2), (3)
  43. C-78/00 Commission v Italy Judgment · 25 October 2001 · Italy · cites Article 18(2), (4)
  44. C-276/98 Commission v Portugal Judgment · 8 March 2001 · Portugal · cites Article 18(1)(a)
  45. C-400/98 Breitsohl Opinion · 16 December 1999 · Germany
  46. C-361/96 Grandes Sources d'Eaux Minérales Françaises v Bundesamt für Finanzen Judgment · 11 June 1998 · Germany · cites Article 18(1)(a)
  47. C-286/94 Molenheide Judgment · 18 December 1997 · Belgium · cites Article 18(1), (1)(a), (2), (3), (4)
  48. C-370/95 Careda and Others v Administración General del Estado Judgment · 26 June 1997 · Spain · cites Article 18(1)(a)
  49. C-141/96 Langhorst Opinion · 27 May 1997 · Germany · cites Article 18(1)(a)
  50. C-85/95 Reisdorf v Finanzamt Köln-West Judgment · 5 December 1996 · Germany · cites Article 18(1), (1)(a), (2), (3)
  51. C-80/95 Harnas & Helm Opinion · 7 November 1996 · Netherlands
  52. C-306/94 Régie dauphinoise Opinion · 15 February 1996 · France
  53. C-10/92 Balocchi Opinion · 24 March 1993 · Italy · cites Article 18(2)
  54. C-20/91 De Jong Judgment · 6 May 1992 · Netherlands
  55. C-97/90 Lennartz Judgment · 11 July 1991 · Germany · cites Article 18(3), (4)
  56. C-123/87 Jeunehomme and Others v État belge Judgment · 14 July 1988 · Belgium · cites Article 18(1)(a)