- The ECJ addressed whether loyalty points awarded under a customer loyalty programme qualify as ‘vouchers’ for VAT purposes under Article 30a of the VAT Directive.
- Lyko Operations’ loyalty programme allows customers to earn points from purchases, which can later be redeemed for goods, but points cannot be bought, sold, or exchanged for money.
- The Revenue Law Commission concluded that the loyalty programme does not involve the transfer of vouchers, as points do not represent a monetary value or obligate acceptance as consideration.
- The case also examined how the taxable amount should be determined when points are redeemed, given that no specific payment is made for the points.
Source: ey.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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