Lee Squires and Fiona Bantock (Hogan Lovells) report the latest VAT developments that matter.
Tesco Freetime: loyalty card scheme
In Tesco Freetime Ltd and Tesco PLC v HMRC [2017] UKFTT 614 the First-tier Tribunal (FTT) has given a decision on the VAT treatment of the Tesco Clubcard programme. Under the scheme a customer obtains points for purchases from Tesco or a third party partner which are converted into vouchers. These vouchers are either used to pay for goods in store or online at Tesco or converted into tokens (having a greater value than the vouchers) to redeem at a Clubcard partner (the Reward Partner).
When tokens are redeemed with Reward Partners the Reward Partners invoice Tesco Freetime (a subsidiary of Tesco) for a percentage of the value of the tokens redeemed.
The question for the FTT was whether Freetime could recover the...
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Lee Squires and Fiona Bantock (Hogan Lovells) report the latest VAT developments that matter.
Tesco Freetime: loyalty card scheme
In Tesco Freetime Ltd and Tesco PLC v HMRC [2017] UKFTT 614 the First-tier Tribunal (FTT) has given a decision on the VAT treatment of the Tesco Clubcard programme. Under the scheme a customer obtains points for purchases from Tesco or a third party partner which are converted into vouchers. These vouchers are either used to pay for goods in store or online at Tesco or converted into tokens (having a greater value than the vouchers) to redeem at a Clubcard partner (the Reward Partner).
When tokens are redeemed with Reward Partners the Reward Partners invoice Tesco Freetime (a subsidiary of Tesco) for a percentage of the value of the tokens redeemed.
The question for the FTT was whether Freetime could recover the...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
