Marriott Rewards LLC and another v Revenue and Customs Commissioners

Value added tax – Supply of goods or services. The proceedings concerned a customer loyalty scheme operated by the first taxpayer, Marriott Rewards LLC (MR). The First-tier Tribunal (Tax and Chancery Chamber)(the FTT) had held that the Revenue and Customs Commissioners (HMRC) had wrongly decided that payments made by MR to participating hotels owned and operated by the second taxpayer (WG) were third party consideration, thereby refusing MR's claim under s 39 of the Value Added Tax Act 1994 for recovery of VAT (issue 1). However, the FTT had held that the relevant supplies were neither services connected with immovable property, as argued by MR or advertising services, as argued by WG (issue 2). The Upper Tribunal (Tax and Chancery Chamber) dismissed HMRC's appeal on issue 1 and the taxpayers' appeal on issue 2.

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