European Union Gazettes ECJ Preliminary Ruling on Swedish VAT Treatment of Loyalty Points

The European Union Official Gazette May 11 published the European Court of Justice (ECJ) preliminary ruling for Case No. C-436/24, on the Swedish VAT treatment of loyalty points. The taxpayer, a Swedish hair and beauty product company, developed a loyalty program where customers earned points with purchases and redeemed them for goods. The Advocate General previously opined that the points didn’t create an obligation for the taxpayer to accept them as consideration for a supply of goods, so they didn’t qualify as vouchers under EU Directive 2006/112/EC on the common system of VAT. Upon request for a preliminary ruling, the ...