VDT VALUE ADDED TAX – input tax – the Appellant operates the Nectar programme under which customers who purchase goods (called primary goods) from certain retailers receive points which they may use to acquire goods (called secondary goods) from other suppliers – the Appellant pays the supplier for the secondary goods – whether, when a customer acquires secondary goods from a supplier using his points, the supply of the secondary goods is to the customer – no – or to the Appellant – yes -whether there should be a request to the Court of Justice for a preliminary ruling – no – appeal allowed – VATA 1994 S 2; Art 234 EC
The Tribunal allowed an appeal by LMUK from a ruling made by the Commissioners of Customs and Excise in connection with the treatment for the purposes of VAT of payments made by LMUK in the course of operating the Nectar Loyalty Scheme. The issue was whether LMUK was entitled to recover, as input tax, the VAT element of the amount which it paid to suppliers who, under the Scheme, had agreed to accept Nectar points, or vouchers, in consideration for the supply of goods or services to members of the public. The Commissioners’ ruling was that LMUK was not entitled to do so: ‘There is no supply of redemption services between the Redeemers (Suppliers) and LMUK as regards the rewards fee. The payments made by LMUK to Redeemers represent third party consideration for supplies made by the Redeemers to their customers (the final consumers). Any amounts charged as VAT to LMUK by Redeemers cannot be recovered by LMUK as input tax’.
Judges:
Dr A N Brice
Citations:
[2005] UKVAT V19056
Links:
Statutes:
Value Added Tax Act 1994 2, Art 24 EC
Jurisdiction:
England and Wales
Cited by:
At VDT – Revenue and Customs v Loyalty Management UK Ltd ChD 22-Jun-2006
The taxpayer operated a substantial loyalty reward scheme (Nectar) for assorted companies. The Revenue appealed against an order allowing the company to reclaim input VAT. The court was asked now: ‘what is the proper characteristic, for VAT . .
At VDT – Loyalty Management UK Ltd v HM Revenue and Customs CA 5-Oct-2007
The company (LMUK) managed a loyalty scheme for retailers. Their customers were awarded point sunder the schem on purchasing items, and then redeeemed those points against other purchases. LMUK sought to recover input tax on the invoices it paid to . .
At VDT – Loyalty Management UK (Taxation) ECJ 7-Oct-2010
ECJ (prelimiary ruling) Sixth VAT Directive – Taxable amount – Sales promotion scheme – Loyalty rewards scheme allowing customers to earn points from traders and to redeem them for loyalty rewards – Payments made . .
At VDT – Loyalty Management UK (Taxation) ECJ 7-Oct-2010
ECJ Sixth VAT Directive – Taxable amount – Sales promotion scheme – Loyalty rewards scheme allowing customers to earn points from traders and to redeem them for loyalty rewards – Payments made by the operator of . .
At VDT – Revenue and Customs v Aimia Coalition Loyalty UK Ltd SC 13-Mar-2013
The company managed a card loyalty scheme for retailers. The Revenue appealed against a decision that the company could reclaim VAT input tax on the goods purchased on the customers redeeming their points. The ECJ had decided that the service . .
At VDT – Revenue and Customs v Aimia Coalition Loyalty UK Ltd SC 20-Jun-2013
Decisions about the application of the VAT system are highly dependent upon the factual situations involved. The case-law of the Court of Justice indicates that, when determining the relevant supply in which a taxable person engages, regard must be . .
Lists of cited by and citing cases may be incomplete.
VAT, European
Updated: 30 June 2022; Ref: scu.225147