EN Official Journal of the European Union C 328/4

Judgment of the Court (Second Chamber) of 7 October 2010 (References for a preliminary ruling from the House of Lords, United Kingdom) — Commissioners for Her Majesty’s Revenue and Customs v Loyalty Management UK Ltd (C-53/09), Baxi Group Ltd (C-55/09)

(Joined Cases C-53/09 and C-55/09) (1)

(Sixth VAT Directive - Taxable amount - Sales promotion scheme - Loyalty rewards scheme allowing customers to earn points from traders and to redeem them for loyalty rewards - Payments made by the operator of the scheme to redeemers supplying the loyalty rewards - Payments made by the trader to the operator of the scheme supplying the loyalty rewards)

2010/C 328/06

Language of the case: English

Referring court

House of Lords

Parties to the main proceedings

Applicant: Commissioners for Her Majesty’s Revenue and Customs

Defendants: Loyalty Management UK Ltd (C-53/09), Baxi Group Ltd (C-55/09)

Re:

References for a preliminary ruling — House of Lords — Interpretation of Articles 5, 6, 11A(1)(a) and 17(2) of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment (OJ 1977 L 145, p. 1) — Taxable amount — Loyalty rewards scheme allowing users to earn points from participating traders and to redeem them for rewards or vouchers with approved traders — Redemption of points giving rise to payment by the operator of the scheme to the approved trader concerned — Loyalty rewards scheme enabling customers of a taxable undertaking to collect points when making purchases and to exchange them for rewards offered by a third party advertising and marketing company responsible for operating the scheme — Exchange of points entitling that third party company to payments by the taxable person corresponding to the recommended retail price of the reward goods.

Operative part of the judgment

In relation to a customer loyalty rewards scheme such as those at issue in the cases in the main proceedings, Articles 5, 6, 11A(1)(a) and — in the version resulting from Article 28f(1) — 17(2) of Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment, as amended by Council Directive 95/7/EC of 10 April 1995, must be interpreted as meaning that:

— payments made by the operator of the scheme concerned to redeemers who supply loyalty rewards to customers must be regarded, in Case C-53/09, as being the consideration, paid by a third party, for a supply of goods to those customers or, as the case may be, a supply of services to them. It is, however, for the referring court to determine whether those payments also include the consideration for a supply of services corresponding to a separate service; and

— payments made by the sponsor to the operator of the scheme concerned who supplies loyalty rewards to customers must be regarded, in Case C-55/09, as being, in part, the consideration, paid by a third party, for a supply of goods to those customers and, in part, the consideration for a supply of services made by the operator of that scheme for the benefit of that sponsor.

(1) OJ 2009 C 90, 18.4.2009.

OJ 2010 C 148, 5.6.2010.