On 5 March 2026, the Court of Justice ruled in Lyko Operations (C-436/24) that points issued under a customer loyalty programme were not a voucher within the meaning of Article 30a of the VAT Directive.
The case
Lyko sells hair care and beauty products in shops and online. It planned a free loyalty programme for private customers, who would earn points on each purchase. They could redeem the points in a points shop, but only in connection with a new purchase from the ordinary range. The items were mainly of low value. Points could not be bought or exchanged for money, were personal, and lapsed if they were not used within two years.
Lyko asked for a Swedish tax ruling on whether this was a voucher and, if so, what the taxable amount would be when points were redeemed.
The ruling
A voucher requires an obligation to accept the instrument as consideration or part consideration for a supply. The points create no such obligation. They only allow holders who decide to make a new purchase to obtain additional low-value goods as a bonus. The legislation on vouchers also says that instruments giving only a discount, without a right to the goods or services, are not targeted by those rules.
Because the points are not a voucher, the Court did not answer the question on the taxable amount.
What to check
- Read your programme's terms. Does the holder have a right to goods or services, or only a bonus on a further purchase?
- Do not apply the voucher rules to points that fall outside the definition. The ruling turned on this programme's design, so a different design needs its own assessment.
- The ruling does not settle how the items in a points shop are taxed.
mr. J. el Khalfioui LL.M.