VATcodexEU VAT case law · Court of Justice and General Court

Article 177 Directive 2006/112/EC

Restrictions on the right of deduction

Title X · Deductions › Chapter 3 · Restrictions on the right of deduction

Open in the compendium6 cases ↓

Before 1 January 2007: Article 17 of Sixth Directive 77/388/EEC, according to the correlation table in Annex XII. The wording is not identical.

Text of Article 177

After consulting the VAT Committee, each Member State may, for cyclical economic reasons, totally or partly exclude all or some capital goods or other goods from the system of deductions.

In order to maintain identical conditions of competition, Member States may, instead of refusing deduction, tax goods manufactured by the taxable person himself or goods which he has purchased within the Community, or imported, in such a way that the tax does not exceed the amount of VAT which would be charged on the acquisition of similar goods.

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

Case law on Article 177: 6 cases

Judgments, orders and Advocate General opinions of the Court of Justice and the General Court that cite Article 177 of Directive 2006/112/EC, most recent first.

  1. C-121/24 Vaniz Opinion · 4 September 2025 · Bulgaria
  2. C-188/21 Megatherm-Csillaghegy Order · 3 June 2022 · Hungary
  3. C-95/07 Ecotrade Judgment · 8 May 2008 · Italy · cites Article 17(7) of the Sixth Directive
  4. C-228/05 Stradasfalti Judgment · 14 September 2006 · Italy · cites Article 17(7) of the Sixth Directive
  5. C-155/01 Cookies World Judgment · 11 September 2003 · Austria · cites Article 17(7) of the Sixth Directive
  6. C-409/99 Metropol and Stadler Judgment · 8 January 2002 · Austria · cites Article 17(7) of the Sixth Directive