- IAG paid 673 million euros to the UK HMRC for a VAT claim related to its loyalty program.
- The UK requires a 20% tax rate on redeemed flights.
- IAG is pursuing a legal process to claim a full refund.
- IAG claims the tax rate varies based on the redeemed product, with flights having a 0% rate.
- The payment has no impact on the company’s valuation or target price.
- The payment is not expected to affect the dividend payment for this year.
Source: thecorner.eu
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
