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V1455-18 ·30 May 2018 ·consulta-vinculante Medium impact
Tax

Loyalty programme refunds (cashback) act as discounts reducing the taxable base for promotional services

A company provides a loyalty application where users receive cashback for future purchases. The DGT has ruled that the fees charged by the company to merchants constitute promotional services subject to VAT, and that the cashback provided to the merchant functions as a discount that reduces the taxable base of said service.

In 6 key points

How it affects those involved

Merchants and loyalty platform providers must correctly account for cashback as a reduction in the taxable base of promotional service fees, rather than a separate transaction, ensuring VAT compliance on the net amount.

Lifecycle

2018-05-30PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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