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Article 175 Directive 2006/112/EC

Proportional deduction

Title X · Deductions › Chapter 2 · Proportional deduction

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Text of Article 175

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

2.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 the supervision of the tax authorities, by the taxable person on the basis of his own forecasts.

However, Member States may retain the rules in force at 1 January 1979 or, in the case of the Member States which acceded to the Community after that date, on the date of their accession.

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

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

Case law on Article 175: 11 cases

Judgments, orders and Advocate General opinions of the Court of Justice and the General Court that cite Article 175 of Directive 2006/112/EC, most recent first.

  1. C-513/24 Oblastní nemocnice Kolín Judgment · 19 March 2026 · Czechia
  2. C-80/20 Wilo Salmson France Judgment · 21 October 2021 · Romania
  3. C-661/18 CTT - Correios de Portugal Judgment · 30 April 2020 · Portugal · cites Article 175(3)
  4. C-165/17 Morgan Stanley & Co International Judgment · 24 January 2019 · France · cites Article 175(1)
  5. C-153/17 Volkswagen Financial Services (UK) Judgment · 18 October 2018 · United Kingdom
  6. C-186/15 Kreissparkasse Wiedenbrück Judgment · 16 June 2016 · Germany · cites Article 175(1)
  7. C-91/12 PFC Clinic Judgment · 21 March 2013 · Sweden
  8. C-388/11 Le Crédit Lyonnais Opinion · 28 February 2013 · France
  9. C-49/09 Commission v Poland Opinion · 10 June 2010 · Poland · cites Article 175(2)
  10. C-460/07 Puffer Opinion · 11 December 2008 · Austria
  11. C-484/06 Koninklijke Ahold Opinion · 24 January 2008 · Netherlands