Lithuania: How does use of loyalty programs impact the taxable value of transactions, the moment of taxation, place of supply and VAT deduction issues?
Conference “VAT Challenges: loyalty, points & other sales promotion programs”, 27 March 2014, Kempinski, Vilnius
Customer loyalty programs, allotment of points and other promotional programs have become a regular practice in the business world. Customers are frequently offered the chance to collect loyalty points and store them in specialized discount cards, which may later be exchanged for certain goods/services, or used to cover a certain value of purchase, or be used at business partner sales points and the like. Meanwhile, legal acts which govern this type of scheme are not developing as quickly or as effectively as the swiftly changing business reality.
Use of sales promotion programs in product and service chains, as well as participation by third partners in applying these programs may influence not only the taxable value of transactions involved or the moment of taxation and the place of supply but, most importantly, VAT deduction issues as well. At this moment different working groups at the European Commission are discussing these matters and considering various amendments to the VAT directive. What steps have to be taken now to achieve maximum clarity in respect of VAT as applied to loyalty schemes, as well as other allotment of points and sales promotion programs? We aim to discuss these questions with you.
The conference will consist of two parts: (i) reports and (ii) discussion by business representatives and tax administration experts.
Date: Thursday 27 March 2014, registration from 8:30
Venue: Kempinski Hotel Vilnius, Universiteto str. 14
Partners: KJA Consultancy, Swedish Chamber of Commerce in Lithuania, French – Lithuanian Chamber of Commerce
Registration fee: until 10 March – 350 LT + VAT, later – 420 LT + VAT, for SCC and FCC members – 290 LT + VAT