Tax & Invoices
The Initiative cannot legally act for the Association except in the specific ways laid out our Terms of Cooperation. The relationship between the Initiative and the Association can be summarised as an unincorporated partnership. It means that the Initiative remains responsible for its activities and cannot use the Association’s tax number to issue invoices. If there is a need for that, the Initiative should ask for its own VAT number in its country of activity.
Whenever a third-party needs to invoice a collective hosted on Open Collective Europe ASBL, the third-party must invoice the unincorporated partnership. It also means that the third-party should add the VAT like the third-party would normally do when invoicing an individual customer. Likewise, collectives cannot get VAT back on the products and services they buy. Note also that there is no VAT on donations.
Self-employed and cooperative workers can bill their working time to a collective. To do this, invoices must include some basic data:
- The invoice must be billed to the Collective (including one of the Admin and his/her legal address). There can be no mention of Open Collective Europe on the invoice.
- The invoice must include the name, address, Tax number of the beneficiary
- The invoice must include a tax rate. If your tax rate is 0, the invoice must include a note about this (why your tax rate is 0?).