Participation agreement in VAT
A partial agreement is understood to be an agreement between two or more independent entrepreneurs who agree to act for joint account and risk and to share the proceeds. Partage does not create a new VAT taxable person. The entrepreneurs provide one indivisible service to a customer at one price. For VAT purposes, they are deemed not to perform any services to each other. They therefore only owe VAT on their own share of the proceeds. The payments for the mutual performances performed in part are deemed to take place outside the scope of VAT. The partial agreement regulates the mutual relationship between the entrepreneurs who want to cooperate in part.
Source: fiscount.nl
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