Canonical event record
What happened
IAG is challenging a UK tax assessment that would apply 20% VAT when Avios are issued, rather than when rewards are redeemed. The dispute covers €638 million in payments and is expected to reach a tribunal in 2026, with a decision in 2027.
Why it matters: If upheld, the tax could pressure partner economics, loyalty-program profitability and the value of Avios for members.