Roadtrip through ECJ Cases – Right to deduct VAT on Public Construction works

Last update: June 16, 2025

The ECJ has decided in three cases on the deductibility of VAT related to Public Construction works.

Article in the EU VAT Directive

Article 168 of Council Directive 2006/112/EC

Article 168
In so far as the goods and services are used for the purposes of the taxed transactions of a taxable person, the taxable person shall be entitled, in the Member State in which he carries out these transactions, to deduct the following from the VAT which he is liable to pay:
(a) the VAT due or paid in that Member State in respect of supplies to him of goods or services, carried out or to be carried out by another taxable person;
(b) the VAT due in respect of transactions treated as supplies of goods or services pursuant to Article 18 (a)and Article 27;
(c) the VAT due in respect of intra-Community acquisitions of goods pursuant to Article 2(1)(b)(i);
(d) the VAT due on transactions treated as intra-Community acquisitions in accordance with Articles 21 and 22;
(e) the VAT due or paid in respect of the importation of goods into that Member State.

ECJ Cases – Decided

ECJ Cases – Pending

None

Podcasts

Briefing document ECJ VAT C-132/16 (Iberdrola Inmobiliaria) – VAT Deduction for Third-Party Property Improvements – VATupdate