- The Court of Justice of the European Union (CJEU) is set to rule on whether loyalty program points qualify as vouchers under VAT rules. The case involves Lyko Operations AB, which offers a loyalty program where customers earn points redeemable for goods with a subsequent purchase. The Swedish tax authority ruled that these points do not qualify as vouchers, prompting an appeal. The Advocate General, Juliane Kokott, opined that for points to be considered vouchers, they must be accepted as consideration for goods/services without additional conditions. Since Lyko’s points require an additional purchase, they do not meet this criterion and thus do not qualify as vouchers under the VAT Directive.
Source: mddp.pl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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