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Article 171 Directive 2006/112/EC

Origin and scope of right of deduction

Title X · Deductions › Chapter 1 · Origin and scope of right of deduction

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Text of Article 171

1.VAT shall be refunded to taxable persons who are not established in the Member State in which they purchase goods and services or import goods subject to VAT but who are established in another Member State, in accordance with the detailed rules laid down in Directive 2008/9/EC.

2.VAT shall be refunded to taxable persons who are not established within the territory of the Community in accordance with the detailed implementing rules laid down in Directive 86/560/EEC.

The taxable persons referred to in Article 1 of Directive 86/560/EEC shall also, for the purposes of applying that Directive, be regarded as taxable persons who are not established in the Community where, in the Member State in which they purchase goods and services or import goods subject to VAT, they have only carried out the supply of goods or services to a person designated in accordance with Articles 194 to 197 or Article 199 as liable for payment of VAT.

3.Directive 86/560/EEC shall not apply to:

(a)amounts of VAT which according to the legislation of the Member State of refund have been incorrectly invoiced;

(b)invoiced amounts of VAT in respect of supplies of goods the supply of which is, or may be, exempt pursuant to Article 138 or Article 146(1)(b).

Consolidated version on EUR-Lex (CELEX 02006L0112-20250414). © European Union. Only the Official Journal is authentic.

Case law on Article 171: 16 cases

Judgments, orders and Advocate General opinions of the Court of Justice and the General Court that cite Article 171 of Directive 2006/112/EC, most recent first.

  1. C-527/24 Harry et Associés Judgment · 12 March 2026 · Italy · cites Article 171(1)
  2. C-234/24 Brose Prievidza Judgment · 23 October 2025 · Bulgaria · cites Article 171(1)
  3. C-746/22 Slovenské Energetické Strojárne Judgment · 16 May 2024 · Hungary · cites Article 171(1)
  4. C-80/20 Wilo Salmson France Judgment · 21 October 2021 · Romania · cites Article 171(1)
  5. C-346/19 Bundeszentralamt für Steuern Judgment · 17 December 2020 · Germany · cites Article 171(1)
  6. C-371/19 Commission v Germany (VAT refund – Invoices) Judgment · 18 November 2020 · Germany
  7. C-242/19 CHEP Equipment Pooling Judgment · 11 June 2020 · Romania · cites Article 171(1)
  8. C-133/18 Sea Chefs Cruise Services Judgment · 2 May 2019 · France · cites Article 171(1)
  9. C-562/17 Nestrade Judgment · 14 February 2019 · Spain
  10. C-165/17 Morgan Stanley & Co International Opinion · 3 October 2018 · France
  11. C-533/16 Volkswagen Opinion · 26 October 2017 · Slovakia
  12. C-441/16 SMS Group Judgment · 21 September 2017 · Romania · cites Article 171(1)
  13. C-323/12 E.ON Global Commodities Judgment · 6 February 2014 · Romania · cites Article 171(1)
  14. C-318/11 Daimler and Widex Judgment · 25 October 2012 · Sweden · cites Article 171(1)
  15. C-624/10 Commission v France Judgment · 15 December 2011 · France
  16. C-582/08 Commission v United Kingdom Judgment · 15 July 2010 · United Kingdom

VAT Committee guidelines on Article 171: 5

Not binding. Positions agreed in the VAT Committee set up under Article 398 of Directive 2006/112/EC and published by the Commission.