Tesco Wins $220 Million VAT Battle With U.K. Tax Authority

Jan. 24, 2019, 5:06 PM UTC

U.K. grocery giant Tesco Plc is allowed to reclaim 103 million pounds ($134 million) value-added tax on a portion of its customer loyalty scheme, a tax court ruled Jan. 24.

The company will also avoid getting hit with a further 66 million pounds ($86 million) in tax.

  • Won appeal brought by country’s tax authority over a lower court ruling; dispute involved years 2002-2017
  • The case centered on a partnership program that ran alongside a loyalty scheme; external companies would accept rewards issued by loyalty program, for a fee
  • Tesco’s court victory means it can deduct fee as an input for ...

Learn more about Bloomberg Tax or Log In to keep reading:

Learn About Bloomberg Tax

From research to software to news, find what you need to stay ahead.

Already a subscriber?

Log in to keep reading or access research tools.