CJEU rules that loyalty programme points do not constitute vouchers for VAT purposes

In Case C-436/24, the CJEU examined whether points issued under a customer loyalty programme by Lyko Operations AB, a Swedish retailer of hair care and beauty products, constituted “vouchers” within the meaning of Article 30a of the VAT Directive (2006/112/EC, as amended by Directive 2016/1065). Under the programme, customers earned points based on their purchases and could redeem them for low-value products from a dedicated “points shop”, but only when making a new purchase. The Court held that the concept of “voucher” requires, as a cumulative condition, an obligation on the supplier to accept the instrument as consideration or part consideration for a supply of goods or services. Since the loyalty points did not create any such obligation – they merely enabled customers making a new purchase to obtain additional goods of low value as a bonus – they fell outside the definition of a voucher. Consequently, the points could not be classified as either single-purpose or multi-purpose vouchers.

Key takeaway

Businesses operating customer loyalty programmes should review whether their schemes fall within the EU VAT voucher rules following this judgment (also followed by the UK). Where points do not carry an obligation for the supplier to accept them as consideration for a supply, they will not be treated as vouchers. This may affect the VAT treatment and timing of transactions linked to such programmes. Specialist advice should be sought to assess the impact on existing arrangements.

Reference

Case C-436/24, Skatteverket v Lyko Operations AB, CJEU (Ninth Chamber), 5 March 2026