# 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.

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**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.
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### 📄 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.

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 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.
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### 🎁 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**.

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

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[Read more: VAT in Europe and how it works in OCE](https://docs.opencollective.com/oceurope/how-it-works/expenses/the-partnership/vat-in-europe-and-how-it-works-in-oce)
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### 📬 Questions?

Email us any time at <oce@opencollective.com>. We're happy to help!