- Advocate-General Kokott issued an opinion on the VAT treatment of loyalty programs in the Lyko case.
- The opinion suggests that loyalty points should be considered discounts rather than vouchers.
- Lyko’s loyalty program allows customers to earn points for purchases, which can be redeemed for goods in a points shop.
- The Swedish tax authorities argued that the points are not vouchers, as they do not have a transferable value.
- The CJEU was asked to clarify whether the points qualify as vouchers and the taxable amount if they do.
Source: taxathand.com
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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