Charging of VAT to the Agency Sample Clauses

Charging of VAT to the Agency. The Agency is not VAT registered in Germany, its host country, and subsequently cannot apply the reverse charge system in place between two taxable contractors located in two different countries of the EU. (i.e. the CSP reverses the VAT liability to the service taker and the service taker pays the VAT in the country where he receives the service, recovering the same amount at the same time; both operations are listed in his local VAT return, which generates no cash drain for the service taker). Since the Agency has no VAT registration in Germany, there can be no VAT payment or recovery claim introduced for these specific intra-community services (the only exception is Portugal) as is the case for individuals. To manage this VAT issue, a specific ruling regarding services provided to international institutions has been set up. The Agency is listed as such an international institution to which the direct exemption principle may be applied. The direct exemption procedure considers the transaction as non-taxable. All EU Member States except Portugal have recognized the direct exemption principle on intra-community services provided to international institutions as long as these conditions are fulfilled:  the amount per invoice exceeds € 240 (vat included)  purchase must be for the official use of the communities (here the Agency)  the supplier is liable to VAT in the European Union  The supplier receives from the customer a fully-completed ”form 15.10” (referring to article 15.10 of the 6th VAT directive). The reference to the exemption article in the local language of the supplier is mentioned on the purchase order and should also be mentioned on each delivered invoice. (VAT exemption/international organisation/art 15.10 of the 6th vat directive).