Common use of Contract Charges and VAT Clause in Contracts

Contract Charges and VAT. In consideration of the Solicitor's performance of its obligations under the Contract, the Client shall pay the Contract Charges in accordance with Clause 3.2 (Payment). The Client shall, in addition to the Contract Charges and following receipt of a valid VAT invoice, pay the Solicitor a sum equal to the VAT chargeable on the value of the Contract Services supplied. The provisions of paragraphs 8 and 9 of Framework Schedule 2 (Charging Structure) of the Framework Agreement shall apply in relation to the Contract Services. If at any time before the Contract Services have been delivered in full the Solicitor reduces its Framework Prices for any Services which are provided under the Framework Agreement in accordance with the terms of the Framework Agreement with the result that the Framework Prices are lower than the Contract Charges, the Contract Charges for the Contract Services shall automatically be reduced so as to be equal to the Framework Prices. The Solicitor shall indemnify the Client on demand and on a continuing basis against any liability, including without limitation any interest, penalties or costs, which are suffered or incurred by or levied, demanded or assessed on the Client at any time in respect of the Solicitor's failure to account for or to pay any VAT relating to payments made to the Solicitor under the Contract. Any amounts due under this Clause 3.1.5 shall be paid by the Solicitor to the Client not less than five (5) Working Days before the date upon which the tax or other liability is payable by the Client.