The Partnership

🧾 Legal Relationship: Indirect Representation

The relationship between your Collective and Open Collective Europe (OCE) is one of indirect representation (représentation indirecte / middellijke vertegenwoordiging).

This means:

  • Your Collective remains fully responsible for its own activities, including legal and tax compliance.

  • OCE acts as a fiscal host and intermediary, not as the legal representative or owner of your funds or operations.

Important: Your Collective must not use OCE's tax identification number (e.g. VAT number) for invoicing or registration purposes. If you need a tax number, you are responsible for obtaining your own in accordance with local law.

📄 Invoicing Guidelines

To stay compliant with our hosting terms:

  • Invoices must be addressed to your Collective or one of its administrators — never to Open Collective Europe.

  • Third parties must treat your Collective as an unincorporated group or individual for VAT purposes.

  • If VAT does not apply, the invoice must cite the relevant VAT exemption article.

If an invoice is wrongly addressed to OCE, it must be canceled and replaced. Repeated errors may lead to the end of your fiscal hosting agreement.

🎁 Donations from Your Collective

Your Collective can donate to another nonprofit — as long as the donation is not made in exchange for services (which would be a taxable transaction).

To process a donation:

  1. Ask the recipient to submit an expense via your Collective's page.

  2. Include:

    • A signed letter from the beneficiary confirming the purpose and amount.

    • A copy of their incorporation document.

    • Their bank identification document.

Donations to for-profit companies are not allowed. If a counterpart (e.g. visibility or services) is involved, a proper invoice is required instead.

💡 VAT & Nonprofit Status

Collectives hosted by OCE are not legal entities and must pay VAT on purchases:

  • VAT must be listed on invoices (unless an exemption applies).

  • The reverse charge mechanism does not apply to Collectives — only registered businesses can use it.

Read more: VAT in Europe and how it works in OCE

📬 Questions?

Email us any time at [email protected]. We're happy to help!

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