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CJEU Clarifies VAT Rules: Loyalty Points Are Not Vouchers Under EU Law

  • The CJEU ruled that loyalty points redeemable only with a further purchase do not qualify as vouchers for VAT purposes under the EU VAT Directive.
  • Loyalty points are considered a discount or promotion mechanism, not a form of consideration for goods or services.
  • VAT is charged on the full price at the initial sale; when points are redeemed, VAT applies only to the amount actually paid (the discounted price).
  • Unredeemed or expired points do not require any VAT adjustment.

Source: meridianglobalservices.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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