I need help quick!  Our experience with foreign sponsors is virtually
nil.  We are about to become a subcontractor on a research project with
a private organization in Spain that was previously a government agency
but has now been privatized.  (A new faculty member previously worked
there).  The larger project is funded by the European Commission.  The
agreement clause on taxation reads:  "The current contract includes all
kinds of taxation.  The Contractor shall be responsible for complying
with the naitonal tax laws applicable to Contractor...."

At first I thought this referred to aUS tax liability, but I just
attended NCURA SPAII and learned that sometimes foreign sponsors attempt
to levy their own country's taxes against what they owe US universities.
We know that the EC partners have what is called "Value Added Tax"
(VAT).  However, we lack expertise in my office to determine if that is
a tax that would be placed on this research services contract.  Can
someone who has more experience tell me if we are about to obligate
ourselves to paying a tax we don't intend?  If we are subject to the
witholding of VAT from our payments, can we file with the Spanish
government to get the money back?  General responses welcome, but if you
have specific experience with sponsors in Spain, /please/ let me hear
from you.

As always, thanks for the bail-out!!

Barbara

--
==================================================================
Barbara H. Gray, Director
Office of Research & Grants Administration
College of Charleston
66 George Street
Charleston, SC  29424
Campus Location:  407-G Bell Bldg.
Office: 843.953.5673  Desk: 843.953.5885  Fax:  843.953.6577
e-mail:  xxxxxx@cofc.edu   URL: http://www.orga.cofc.edu/
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