PKF newsletter

Provisions for bonus points – New recognition requirement

A great number of businesses – even smaller ones, such as, pharmacies or bakeries – use bonus point systems or loyalty card schemes to strengthen customer loyalty and to create incentives for future purchases. A recent Federal Fiscal Court (Bundesfinanzhof, BFH) ruling, of 29.9.2022, departed from the previous prevailing opinion relating to recognition in the financial and tax accounts in this regard and, in many cases, this will now lead to a recognition requirement.