ECJ C-436/24 (Lyko Operations) – Questions – Interpreting VAT Directive: Loyalty Points as Vouchers

The ECJ issued the preliminary ruling in the case C-436/24 (Lyko Operations).

Context: Request for a preliminary ruling under Article 267 TFEU on the interpretation of Articles 30a and 73a of Directive 2006/112/EC on the
common system of value added tax (VAT Directive)

Articles in the EU VAT Directive

Articles 30a and 73a of Directive 2006/112/EC

Article 30a
For the purposes of this Directive, the following definitions shall apply:
(1) ‘voucher’ means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services and where the goods or services to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument;
(2) ‘single-purpose voucher’ means a voucher where the place of supply of the goods or services to which the voucher relates, and the VAT due on those goods or services, are known at the time of issue of the voucher;
(3) ‘multi-purpose voucher’ means a voucher, other than a single- purpose voucher.

Article 73a
Without prejudice to Article 73, the taxable amount of the supply of goods or services provided in respect of a multi-purpose voucher shall be equal to the consideration paid for the voucher or, in the absence of information on that consideration, the monetary value indicated on the multi-purpose voucher itself or in the related documentation, less the amount of VAT relating to the goods or services supplied.

Facts & Background

The Supreme Administrative Court wishes to clarify, by means of a preliminary ruling, how the definition of voucher in the VAT Directive is to be interpreted.

More specifically, the referring court wishes to clarify whether a customer’s right to obtain additional goods from a company under a customer loyalty programme, depending on the size of the purchases which the customer has made with the company, constitutes a voucher. If that right does constitute a voucher, the Supreme Administrative Court further wishes to clarify how the taxable amount is to be determined. The questions have arisen in a case concerning a tax ruling issued by the Skatterättsnämnden (Revenue Law Commission, Sweden) against which an appeal has been lodged.

Questions

Question 1: Does an instrument in the form of points – such as that at issue in the main proceedings – constitute a voucher as defined in Article 30a of the VAT Directive where the points are awarded under a customer loyalty programme designed in such a way that a customer who purchases goods obtains points according to the size of the purchases and is then entitled, when making a future purchase, to use the points to obtain further goods from the seller’s range?

Question 2: If the answer to Question 1 is [in the affirmative], how is the taxable amount under Article 73a of the VAT Directive to be determined when the points are used to obtain goods from the seller?

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