Common use of Place of Supply for Purposes of VAT Clause in Contracts

Place of Supply for Purposes of VAT. I. Statement of the Subject of Settlement a) The Subject of Settlement hereby declares that the organizational unit referred to in Article 1 of this Agreement is not a business establishment pursuant to the Value Added Tax Act, as amended. Furthermore, the Subject of Settlement hereby declares that it has no other representation in the territory of the Czech Republic that may be deemed a business establishment and that no supply provided by the Operator is intended for the organizational unit or any other representation of the Subject of Settlement in the Czech Republic. b) The Subject of Settlement hereby undertakes to notify the Market Operator without undue delay, but no later than within 10 days, about any change in the line of business of the organizational unit that would result in setting up a business establishment and, furthermore, in the event any other establishment arises for the Subject of Settlement in the territory of the Czech Republic. Should such event occur, relevant information must be provided in writing without undue delay, but no later than within 10 days following the date of setting up a business establishment of the Subject of Settlement in the Czech Republic. c) The Subject of Settlement hereby undertakes that in the event the relevant tax administration authorities deem its organizational unit or other representation in the Czech Republic a business establishment for purposes of value added tax and, as a result, the Market Operator is required to pay additional tax and/or the tax administrator levies sanction or tax attribution thereof pursuant to relevant legal regulations, such as fines and penalties, tax increase, or late payment interest, due to erroneous value-added tax declaration, the Subject of Settlement shall fully refund all such assessed and additionally assessed tax payments and reasonable expenses of the Market Operator arising from administrative proceedings related to the assessment and additional assessment, with the exception of the expenses arising from proceedings whereby the tax administrator has ordered the Market Operator to pay these expenses due to inactivity or breach of legal obligations by the Market Operator pursuant to Section 30 (7) of Act No. 337/1992 Coll., on Administration of Taxes and Fees. d) The Subject of Settlement shall make the refund based on written notice by the Market Operator and following submission of documentation on additional tax assessment and levying related sanctions and tax attribution by the tax administrator for the Market Operator, and documents proving that the Market Operator has paid the tax administrator the additionally assessed tax and related sanctions and tax attribution. The Subject of Settlement shall make the refund without undue delay, no later than within one week after delivery of said notice and documentation listed above to the Subject of Settlement regardless of whether the decision on additional tax assessment and other levied payments has become enforceable and legitimate. The Subject of Settlement shall reimburse the Market Operator for the sanctions and tax attribution levied by the tax administrator due to late tax payment up to the amount of the sanctions and tax attribution in accordance with late tax payment by the substitute due date of payment of additionally assessed tax pursuant to Section 46 of Act No. 337/1992 Coll., on Administration of Taxes and Fees. e) The obligation of the Subject of Settlement under the foregoing Article is in no way affected by whether the Market Operator has exercised statutory remedial measures against the decision on additional tax assessment and other levied payments, or not. In the event the decision hereof is cancelled or mitigated and the additionally assessed or levied payment in full or partially returned to the Market Operator or set off against another tax obligation the refund of which is not within the scope of the Subject of Settlement’s obligations under the foregoing Article, the Market Operator is obligated to reimburse the Subject of Settlement the corresponding amount reduced by reasonable expenses incurred to exercise remedial measures that resulted in cancellation or mitigation of the relevant decision.

Place of Supply for Purposes of VAT. I. Statement of the Subject of SettlementTrader a) The Subject of Settlement Trader hereby declares that the organizational unit referred to in Article 1 of this Agreement is not a business establishment pursuant to the Value Added Tax Act, as amended. Furthermore, the Subject of Settlement Trader hereby declares that it has no other representation in the territory of the Czech Republic that may be deemed a business establishment and that no supply provided by the Operator is intended for the organizational unit or any other representation of the Subject of Settlement Trader in the Czech Republic. b) The Subject of Settlement Trader hereby undertakes to notify the Market Operator without undue delay, but no later than within 10 days, about any change in the line of business of the organizational unit that would result in setting up a business establishment and, furthermore, in the event any other establishment arises for the Subject of Settlement Trader in the territory of the Czech Republic. Should such event occur, relevant information must be provided in writing without undue delay, but no later than within 10 days following the date of setting up a business establishment of the Subject of Settlement Trader in the Czech Republic. c) The Subject of Settlement Trader hereby undertakes that in the event the relevant tax administration authorities deem its organizational unit or other representation in the Czech Republic a business establishment for purposes of value added tax and, as a result, the Market Operator is required to pay additional tax and/or the tax administrator levies sanction or tax attribution thereof pursuant to relevant legal regulations, such as fines and penalties, tax increase, or late payment interest, due to erroneous value-added tax declaration, the Subject of Settlement Trader shall fully refund all such assessed and additionally assessed tax payments and reasonable expenses of the Market Operator arising from administrative proceedings related to the assessment and additional assessment, with the exception of the expenses arising from proceedings whereby the tax administrator has ordered the Market Operator to pay these expenses due to inactivity or breach of legal obligations by the Market Operator pursuant to Section 30 (7) of Act No. 337/1992 Coll., on Administration of Taxes and Fees. d) The Subject of Settlement Trader shall make the refund based on written notice by the Market Operator and following submission of documentation on additional tax assessment and levying related sanctions and tax attribution by the tax administrator for the Market Operator, and documents proving that the Market Operator has paid the tax administrator the additionally assessed tax and related sanctions and tax attribution. The Subject of Settlement Trader shall make the refund without undue delay, no later than within one week after delivery of said notice and documentation listed above to the Subject of Settlement Trader regardless of whether the decision on additional tax assessment and other levied payments has become enforceable and legitimate. The Subject of Settlement Trader shall reimburse the Market Operator for the sanctions and tax attribution levied by the tax administrator due to late tax payment up to the amount of the sanctions and tax attribution in accordance with late tax payment by the substitute due date of payment of additionally assessed tax pursuant to Section 46 of Act No. 337/1992 Coll., on Administration of Taxes and Fees. e) The obligation of the Subject of Settlement Trader under the foregoing Article is in no way affected by whether the Market Operator has exercised statutory remedial measures against the decision on additional tax assessment and other levied payments, or not. In the event the decision hereof is cancelled or mitigated and the additionally assessed or levied payment in full or partially returned to the Market Operator or set off against another tax obligation the refund of which is not within the scope of the Subject of SettlementTrader’s obligations under the foregoing Article, the Market Operator is obligated to reimburse the Subject of Settlement Trader the corresponding amount reduced by reasonable expenses incurred to exercise remedial measures that resulted in cancellation or mitigation of the relevant decision.

Place of Supply for Purposes of VAT. I. Statement of the Subject of SettlementI. a) The Subject of Settlement BMR Participant hereby declares that the organizational unit referred to in Article 1 of this Agreement is not a business establishment pursuant to the Value Added Tax Act, as amended. Furthermore, the Subject of Settlement BMR Participant hereby declares that it has no other representation in the territory of the Czech Republic that may be deemed a business establishment and that no supply provided by the Operator is intended for the organizational unit or any other representation of the Subject of Settlement BMR Participant in the Czech Republic. b) The Subject of Settlement BMR Participant hereby undertakes to notify the Market Operator without undue delay, but no later than within 10 days, about any change in the line of business of the organizational unit that would result in setting up a business establishment and, furthermore, in the event any other establishment arises for the Subject of Settlement BMR Participant in the territory of the Czech Republic. Should such event occur, relevant information must be provided in writing without undue delay, but no later than within 10 days following the date of setting up a business establishment of the Subject of Settlement BMR Participant in the Czech Republic. c) The Subject of Settlement BMR Participant hereby undertakes that in the event the relevant tax administration authorities deem its organizational unit or other representation in the Czech Republic a business establishment for purposes of value added tax and, as a result, the Market Operator is required to pay additional tax and/or the tax administrator levies sanction or tax attribution thereof pursuant to relevant legal regulations, such as fines and penalties, tax increase, or late payment interest, due to erroneous value-added tax declaration, the Subject of Settlement BMR Participant shall fully refund all such assessed and additionally assessed tax payments and reasonable expenses of the Market Operator arising from administrative proceedings related to the assessment and additional assessment, with the exception of the expenses arising from proceedings whereby the tax administrator has ordered the Market Operator to pay these expenses due to inactivity or breach of legal obligations by the Market Operator pursuant to Section 30 (7) of Act No. 337/1992 Coll., on Administration of Taxes and Fees. d) The Subject of Settlement BMR Participant shall make the refund based on written notice by the Market Operator and following submission of documentation on additional tax assessment and levying related sanctions and tax attribution by the tax administrator for the Market Operator, and documents proving that the Market Operator has paid the tax administrator the additionally assessed tax and related sanctions and tax attribution. The Subject of Settlement BMR Participant shall make the refund without undue delay, no later than within one week after delivery of said notice and documentation listed above to the Subject of Settlement BMR Participant regardless of whether the decision on additional tax assessment and other levied payments has become enforceable and legitimate. The Subject of Settlement BMR Participant shall reimburse the Market Operator for the sanctions and tax attribution levied by the tax administrator due to late tax payment up to the amount of the sanctions and tax attribution in accordance with late tax payment by the substitute due date of payment of additionally assessed tax pursuant to Section 46 of Act No. 337/1992 Coll., on Administration of Taxes and Fees. e) The obligation of the Subject of Settlement BMR Participant under the foregoing Article is in no way affected by whether the Market Operator has exercised statutory remedial measures against the decision on additional tax assessment and other levied payments, or not. In the event the decision hereof is cancelled or mitigated and the additionally assessed or levied payment in full or partially returned to the Market Operator or set off against another tax obligation the refund of which is not within the scope of the Subject of SettlementBMR Participant’s obligations under the foregoing Article, the Market Operator is obligated to reimburse the Subject of Settlement BMR Participant the corresponding amount reduced by reasonable expenses incurred to exercise remedial measures that resulted in cancellation or mitigation of the relevant decision.