Category: law reports

Loyalty points operator is entitled to VAT credit

Loyalty Management UK Ltd v Revenue and Customs Commissioners

Court of Appeal

“The supply of goods or services made by the dealer or redeemer of consumer loyalty points to the collector or customer was, for the purpose of value-added tax, the supply of goods or services by the dealer to the operator of the scheme, who was therefore entitled to tax credits from the Revenue in respect of that supply or service.”

The Times, 10th October 2007

Source: www.timesonline.co.uk

Please note the Times Law Reports are only available free on Times Online for 21 days from the date of publication.

Loyalty Management UK Ltd v Commissioners for HM Revenue and Customs [2007] EWCA Civ 1928

“The supply of goods or services by a retailer when redeeming loyalty points collected by a customer under the Nectar Loyalty Scheme was, for VAT purposes, a supply of “redemption services” to the scheme operator, as well as of goods and services to the customer, and the scheme operator was therefore entitled to input tax credit on its payments, by way of a “service charge”, to the retailer.”

WLR Daily, 9th October 2007

Source: www.lawreports.co.uk Please note: once a case has been fully reported in one of the ICLR series the corresponding WLR Daily summary is removed.