European Court of Justice Issues Advocate General Opinion on Swedish VAT Treatment of Loyalty Points

The European Court of Justice (ECJ) Sept. 11 issued an Advocate General opinion for Case No. C-436/24, on the Swedish VAT treatment of loyalty points. The taxpayer, a Swedish hair care and beauty product company, developed a customer loyalty program where customers earned points with purchases and redeemed them for goods. The taxpayer sought a tax ruling to determine if these points should be treated as vouchers under EU VAT law. The Swedish Revenue Law Commission and the Tax Agency contended that the loyalty program didn’t imply the issuance of vouchers because the points didn’t have any specific monetary value. ...