- The CJEU ruled that loyalty points in Lyko’s programme do not qualify as vouchers and do not trigger VAT upon issuance or redemption.
- Loyalty points can only be redeemed in Lyko’s points shop during a subsequent purchase and cannot be combined with money or transferred.
- The Swedish tax authorities and the Advocate-General agreed that the points are not vouchers, as they do not create an independent obligation for Lyko to supply goods.
- The CJEU emphasized that, under EU VAT law, a voucher must be accepted as consideration for goods, which is not the case for these loyalty points.
- Only the price paid by the customer during the second purchase is subject to VAT.
Source: deloitte.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.
Latest Posts in "European Union"
- EU to Publish First CBAM Certificate Price on 7 April 2026
- Roadtrip through ECJ cases: Focus on Promotional activities/Discounts (Art. 79, 87, 90(1))
- Briefing document & Podcast: Ibero Tours (C-300/12): VAT Principles Clarified on Price Reductions by Intermediaries
- Roadtrip through ECJ Cases – Focus on ”Vouchers” (Art. 30a, 30b, 73a)
- Comments on ECJ C-472/24: Court Rules Virtual Gold Not Exempt from VAT
