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 by the operator of the scheme to redeemers supplying the loyalty rewards – Payments made by the trader to the operator of the scheme supplying the loyalty rewards.
The Court reformulated the questions so as to ask the following: ‘whether, in the context of a customer loyalty reward scheme such as those at issue in the main proceedings:
– payments made by the operator of the scheme at issue to redeemers who supply loyalty rewards to customers must be considered, in Case C-53/09, as third-party consideration for a supply of goods to those customers, and/or, as the case may be, for a supply of services made by those redeemers for the benefit of those customers, and/or as the consideration for a supply of services made by those redeemers for the benefit of the operator of that scheme’.
Held: ‘Payments made by the operator of the scheme concerned to redeemers who supply loyalty rewards to customers must be regarded, in Case C-53/09, as being the consideration, paid by a third party, for a supply of goods to those customers or, as the case may be, a supply of services to them. It is, however, for the referring court to determine whether those payments also include the consideration for a supply of services corresponding to a separate service.’
J. N. Cunha Rodrigues, P
C-55/09, [2010] EUECJ C-55/09, [2010] STC 2651
Bailii
European
Citing:
At VDTLoyalty Management UK Ltd v Customs and Excise VDT 6-Apr-2005
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 . .
At ChDRevenue 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 CALoyalty 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 . .
Reference (Baxi)Baxi Group Ltd v Revenue and Customs CA 20-Dec-2007
. .

Cited by:
Preliminary RulingLoyalty 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 . .
ECJ Preliminary RulingRevenue 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 . .
ECJ Prel RulingRevenue 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 . .

These lists may be incomplete.
Updated: 28 February 2021; Ref: scu.425291