Barbara,
While we haven't had experience with the issue you describe, we have had
direct experience with the EC and have not been able to accept any money
from them because they would not budge on clauses we could not accept,
such as governing law.  I recommend that if the prime funder on your
project is the EC, you look carefully at the flow down language.
Good luck with the VAT issue.
Ann

Barbara Gray wrote:

> 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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--
Ann T. McGuigan, Ph.D.
Director, Office of Sponsored Programs
George Mason University
4400 University Drive, MS 4C6
Fairfax, Virginia 22030-4444
Phone:  (703) 993-2298
Fax:    (703) 993-2296
Email: xxxxxx@gmu.edu

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