Taxes

Tax regime for loyalty points granted to clients as part of marketing campaigns

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In this article we explain the Romanian tax regime applicable for loyalty points granted by companies to their clients, as part of different marketing initiatives for increasing their sales.

We will explain the tax regime applicable for the customers receiving loyalty points, and benefitting of different products in exchange of loyalty points, as part of such sales campaigns, and whether or not there are any tax reporting obligations for the individuals receiving them, or any tax withholding obligations for the Romanian company or marketing agencies granting such points.

Romanian retailers or companies from consumer products sector implement various marketing campaigns for sales increase, part of which they sometimes provide their clients with loyalty or fidelity points. The loyalty points can be further used by clients to obtain different discounts on other products, or to purchase some products free of charge. Generally, the overall purpose of such campaigns can be described as follows:

  • create more visibility for their own products or services via different channels, such as written or digital media;
  • facilitate closer contact between occasional customers and the company;
  • reward customers enrolled in a loyalty program for their continued loyalty with the company’s brand.

Tax & Legal consultant since 2005.

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