Total UK Limited ("Total") operates a sales promotion scheme called the Total Oil Promotion Scheme ("TOPS"). Customers who join the scheme and purchase sufficient quantities of fuel at Total filling stations are entitled to receive vouchers which can be used in payment for goods or services purchased from certain national retailers. This appeal concerns the VAT consequences of the transfer of those vouchers by Total to members of the scheme. Total contends that the taxable amount of its sales of fuel, on which it is liable to pay output tax, is reduced by an amount equal to the value of the vouchers transferred (that value being taken as the cost to Total of purchasing the vouchers from the retailers). Total's case failed before Sir Stephen Oliver QC, President of the Value Added Tax and Duties Tribunal, but succeeded on appeal before Sir Andrew Park, sitting as a Judge of the High Court, whose judgment is reported at [2007] STC 564. The Commissioners for Her Majesty's Revenue and Customs ("the commissioners") now bring this further appeal.

http://www.bailii.org/ew/cases/EWCA/Civ/2007/987.html