Comments on ECJ Opinion in case C-436/24 (Lyko Operations): Loyalty Points Are Not Vouchers for VAT

Advocate General Kokott opined that loyalty points in Lyko’s scheme are not “vouchers” under the VAT Directive, but conditional rebates.
The points only provide a price reduction on future purchases and do not grant an independent right to a reward.
VAT is only adjusted when points are redeemed; unredeemed points do not affect the VAT taxable base.
The opinion clarifies the distinction between loyalty schemes and vouchers, providing legal certainty and preventing overextension of the voucher regime.
Companies should review loyalty program contracts to avoid unintended voucher classification and related VAT consequences.

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.