This is yet another case in the fact-sensitive area of VAT and reward schemes. The appellant, Baxi Group Limited ("Baxi"), appearing by Mr�Scorey, is the representative member of a VAT group that has within it Baxi Heating UK Limited, a boiler manufacturer making, inter alia, Potterton Boilers. Having earlier run its own Potterton promotional scheme, Baxi chose then to delegate operation of a wider Baxi reward scheme to @1 Limited ("@1"), a company which carries on business as operator of such schemes. I shall describe the promotional scheme � the "Bonus Direct Scheme" or "BDS" � in more detail below but, in brief, installers of Baxi boilers earn "points" which they "redeem" with @1 for rewards � goods and services � chosen from a bespoke Baxi version of an @1 catalogue. The chosen rewards are then provided to installers by @1. @1 invoiced Baxi at the full recommended retail price ("the RRP") for what had thus been provided to installers and @1 charged VAT on the invoiced amount, which Baxi paid.

http://www.bailii.org/ew/cases/EWHC/Ch/2006/3353.html