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Loyalty schemes

TAX MAG: VAT news in Europe

Keep up with the latest Intra-Community and European VAT news, decoded by our experts.

Focus: Loyalty schemes

EU : Loyalty schemes and VAT – the CJEU clarifies the treatment of points-based programmes Judgment of 5 March 2026, C-436/24, Lyko Operations

In this ruling, the CJEU clarified the VAT treatment of points-based loyalty schemes, and the distinction between multi-purpose vouchers (MPVs) and simple price reduction mechanisms. The case concerned a Swedish company operating a cosmetics distribution network, which had introduced a loyalty programme allowing customers to accumulate points on purchases and redeem them on future transactions...
19 May 2026
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