VAT and the Nectar Trader
Loyalty Management UK Ltd v Commissioners for HM Revenue and Customs[2007] EWCA Civ 1928
CA
Weekly Law Reports Summary
5 October 2007
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.