Re: Value Added Tax on Research Subcontracts to Dutch Institution Robert Miller 18 Apr 2006 09:34 EST
Before discussing the specific tax issue, the primary issue seems to be the contract language and what was actually agreed to. My suggestion is not to discuss the matter with the sub and refer this matter to your legal counsel as it seems you have a dispute on contract language. Robert ____________ Robert Gregory Miller Charles R. Drew University of Medicine and Science Div. of Endocrinology, Metabolism and Molecular Science Administrative Director/Research Administrator SRA/NCURA Member xxxxxx@cdrewu.edu Office: 323.563.5961 Fax: 323.563.5966 Notice of Confidentiality This message contains information that may be confidential or privileged. It is intended for the exclusive use of the addressee or any person entitled to receive it. If you received this message in error, please inform the author as soon as possible, do not disclose its contents and delete it from your system -----Original Message----- From: Research Administration List [mailto:xxxxxx@HRINET.ORG] On Behalf Of Lee Wood Sent: Monday, April 17, 2006 4:58 PM To: xxxxxx@HRINET.ORG Subject: [RESADM-L] Value Added Tax on Research Subcontracts to Dutch Institution Colleagues, My program is a commercially sponsored research program and we have recently signed a subcontract with a Dutch non-academic institution for them to perform scope-of-work research as part of our project. The agreed-upon terms of the agreement state that no taxes, import or export duties levied by any government against either us or our Dutch subcontractor will be reimbursable. The Dutch subcontractor's detailed budget proposal did not include Value Added Tax (VAT), and if it had, we would have had them remove it before we proceeded with the negotiation. Now, several months later as they prepare to send us an invoice, they want to add VAT in addition to their other allowable expenses. Naturally, we have told them we will not pay VAT. Indeed, we cannot, because our prime agreement forbids it, and the term flows down into our subcontracts. They seemed to feel that it went without saying that we would pay VAT in addition to other direct and indirect costs. Has anyone else had any experience in resolving issues with European or Dutch subcontractors involving VAT? Is this a problem with the Dutch laws, or is it more widespread through the EU? Is there a reasonable way of this other than cancelling their contract? Help! Or perhaps I should cry "Hulp!" Lee **************************************************************** Lee Wood (Mr.) Administrative Manager - Global Climate and Energy Project (GCEP) Stanford University 416 Escondido Mall, Peterson Labs, Room 556T Stanford, CA 94305-2205 Mail Code: 2205 ( Phone: (650)725-3226 Fax: (650)725-9190 http://gcep.stanford.edu/ **************************************************************** ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ======================================================================