The ECJ held that the payments made by LMUK and Baxi to redeemers who supply loyalty rewards to customers must be regarded as “third party consideration” for a supply of goods or services to customers. This means that LMUK/ Baxi will not be able to recover the VAT unless it can show that there was a clear and separate service or supply that it was receiving. The ECJ stated this is a matter for the national courts.
- EU VAT Treatment of Vouchers in the Context of Promotional Activities
- Taxlawapp.eu (in Dutch)