VATcodexEU VAT case law · Court of Justice and General Court

Article 19 Sixth Directive 77/388/EEC

Calculation of the deductible proportion

Title XI · Deductions

Open in the compendium43 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Repealed. The Sixth Directive 77/388/EEC was repealed with effect from 1 January 2007 and replaced by Directive 2006/112/EC.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 19

1.The proportion deductible under the first subparagraph of Article 17 (5) shall be made up of a fraction having:

—as numerator, the total amount, exclusive of value added tax, of turnover per year attributable to transactions in respect of which value added tax is deductible under Article 17 (2) and (3),

—as denominator, the total amount, exclusive of value added tax, of turnover per year attributable to transactions included in the numerator and to transactions in respect of which value added tax is not deductible. The Member States may also include in the denominator the amount of subsidies, other than those specified in Article 11 A (1) (a).

The proportion shall be determined on an annual basis, fixed as a percentage and rounded up to a figure not exceeding the next unit.

2.By way of derogation from the provisions of paragraph 1, there shall be excluded from the calculation of the deductible proportion, amounts of turnover attributable to the supplies of capital goods used by the taxable person for the purposes of his business. Amounts of turnover attributable to transactions specified in Article 13 B (d), in so far as these are incidental transactions, and to incidental real estate and financial transactions shall also be excluded. where Member States exercise the option provided under Article 20 (5) not to require adjustment in respect of capital goods, they may include disposals of capital goods in the calculation of the deductible proportion.

3.The provisional proportion for a year shall be that calculated on the basis of the preceding year's transactions. In the absence of any such transactions to refer to, or where they were insignificant in amount, the deductible proportion shall be estimated provisionally, under supervision of the tax authorities, by the taxable person from his own forecasts. However, Member States may retain their current rules.

Deductions made on the basis of such provisional proportion shall be adjusted when the final proportion is fixed during the next year.

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

Case law on Article 19: 43 cases

Judgments, orders and Advocate General opinions of the Court of Justice and the General Court that cite Article 19 of Sixth Directive 77/388/EEC, most recent first.

  1. C-573/20 Casa di Cura Città di Parma Order · 14 April 2021 · Italy
  2. C-42/19 Sonaecom Judgment · 12 November 2020 · Portugal · cites Article 19(1)
  3. C-716/18 AJPF Caraş-Severin and DGRFP Timişoara Judgment · 9 July 2020 · Romania · cites Article 19(2)
  4. C-165/17 Morgan Stanley & Co International Judgment · 24 January 2019 · France · cites Article 19(1)
  5. C-378/15 Mercedes Benz Italia Judgment · 14 December 2016 · Italy · cites Article 19(1), (2)
  6. C-186/15 Kreissparkasse Wiedenbrück Judgment · 16 June 2016 · Germany · cites Article 19(1)
  7. C-332/14 Wolfgang und Dr. Wilfried Rey Grundstücksgemeinschaft Judgment · 9 June 2016 · Germany · cites Article 19(1)
  8. C-11/15 Český rozhlas Opinion · 17 March 2016 · Czechia · cites Article 19(1)
  9. C-183/13 Banco Mais Judgment · 10 July 2014 · Portugal · cites Article 19(1)
  10. C-388/11 Le Crédit Lyonnais Judgment · 12 September 2013 · France · cites Article 19(1), (2)
  11. C-560/11 Debiasi Order · 13 December 2012 · Italy
  12. C-511/10 BLC Baumarkt Judgment · 8 November 2012 · Germany · cites Article 19(1)
  13. C-496/11 Portugal Telecom Judgment · 6 September 2012 · Portugal
  14. C-377/11 International Bingo Technology Judgment · 19 July 2012 · Spain · cites Article 19(1)
  15. C-25/11 Varzim Sol Judgment · 16 February 2012 · Portugal · cites Article 19(1)
  16. C-174/08 NCC Construction Danmark Judgment · 29 October 2009 · Denmark · cites Article 19(1), (2)
  17. C-515/07 Vereniging Noordelijke Land- en Tuinbouw Organisatie Opinion · 22 December 2008 · Netherlands
  18. C-488/07 Royal Bank of Scotland Judgment · 18 December 2008 · United Kingdom · cites Article 19(1)
  19. C-95/07 Ecotrade Judgment · 8 May 2008 · Italy · cites Article 19(1)
  20. C-437/06 Securenta Judgment · 13 March 2008 · Germany
  21. C-98/07 Nordania Finans and BG Factoring Judgment · 6 March 2008 · Denmark · cites Article 19(1), (2)
  22. C-484/06 Koninklijke Ahold Opinion · 24 January 2008 · Netherlands · cites Article 19(1)
  23. C-228/05 Stradasfalti Opinion · 22 June 2006 · Italy · cites Article 19(1)
  24. C-63/04 Centralan Property Judgment · 15 December 2005 · United Kingdom
  25. C-243/03 Commission v France Judgment · 6 October 2005 · France · cites Article 19(1)
  26. C-204/03 Commission v Spain Judgment · 6 October 2005 · Spain · cites Article 19(1)
  27. C-536/03 António Jorge Judgment · 26 May 2005 · Portugal · cites Article 19(1), (2)
  28. C-255/02 Halifax and Others Opinion · 7 April 2005 · United Kingdom · cites Article 19(1)
  29. C-77/01 EDM Judgment · 29 April 2004 · Portugal · cites Article 19(1), (2)
  30. C-442/01 KapHag Judgment · 26 June 2003 · Germany · cites Article 19(1), (2)
  31. C-353/00 Keeping Newcastle Warm Opinion · 5 February 2002 · United Kingdom
  32. C-16/00 Cibo Participations Judgment · 27 September 2001 · France · cites Article 19(1), (2)
  33. C-408/98 Abbey National Judgment · 22 February 2001 · United Kingdom
  34. C-142/99 Floridienne and Berginvest Judgment · 14 November 2000 · Belgium · cites Article 19(1), (2)
  35. C-136/99 Monte Dei Paschi Di Siena Judgment · 13 July 2000 · France · cites Article 19(1)
  36. C-98/98 Midland Bank Opinion · 30 September 1999 · United Kingdom
  37. C-172/96 First National Bank of Chicago Judgment · 14 July 1998 · United Kingdom · cites Article 19(1)
  38. C-45/95 Commission v Italy Judgment · 25 June 1997 · Italy
  39. C-80/95 Harnas & Helm Opinion · 7 November 1996 · Netherlands
  40. C-306/94 Régie dauphinoise Judgment · 11 July 1996 · France · cites Article 19(1), (2)
  41. C-4/94 BLP Group Judgment · 6 April 1995 · United Kingdom · cites Article 19(1), (2)
  42. C-62/93 BP Supergas Opinion · 9 March 1995 · Greece · cites Article 19(1)
  43. C-333/91 Sofitam Judgment · 22 June 1993 · France · cites Article 19(1), (2)