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

On the 11^th September 2025, the AG issued its opinion on VAT cases that could have had an impact on how point systems (used a lot by supermarkets) are presently treated for VAT purposes:

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

Background

The case referred to the CJEU relates to whether the points awarded to customers under a loyalty scheme based on purchases by such customers, which points can be exchanged for goods, constitute a voucher. If such right to exchange the points for goods constitutes a voucher, the CJEU is asked to clarify how the taxable amount is to be determined.

AG (non-binding) Opinion

The issue of points under a customer loyalty programme which is 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 does not constitute a voucher within the meaning of Article 30a of Directive 2006/112. There is no (self-standing) obligation to accept those points as consideration for a supply of goods. Therefore, such a point system constitutes only a discount on a future purchase.

In simple words, the AG is recommending that the court decide that point systems do not constitute a voucher and are to be treated as a discount on a future purchase.

Get in Touch:

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Josef Mercieca

jmercieca@quazar.mt / +356 2388 4600