VATLP12400 - Holiday accommodation (Item 1e): Timeshare - points clubs
The purchase of points in a ‘Points’ or ‘Holiday’ club is not a supply for VAT purposes at the time the points are purchased.
However, there is a supply at the time at which the purchaser of the points converts them into the right to occupy holiday accommodation. This supply is standard rated if the accommodation is located in the UK, because it falls under the exclusion from exemption for hotel or holiday accommodation (paragraphs (d) and (e) to item 1, Group 1, Schedule 9, VAT Act 1994).