- Recent ECJ rulings prompt a re-examination of when loyalty points qualify as vouchers for VAT purposes.
- Swiss VAT law currently treats loyalty points as two separate transactions: the original purchase and the later reward redemption, with tax adjustments if rates differ.
- The ECJ distinguishes vouchers from loyalty points, stating vouchers must be accepted as consideration for goods/services, which loyalty points may not fulfill.
- Swiss courts now differentiate between service vouchers (taxed at issuance) and value vouchers (taxed at redemption), depending on certainty about the future service.
- Many loyalty point systems resemble gift certificates, as the future use and applicable tax rate are unknown at the time of point issuance.
Source: primetax.ch
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.
