VAT Treatment of Funds in Agency Agreements Without Representation

• In a mandate with representation, the advanced sums are excluded from the taxable base.
• The mandate giver is required to provide the mandate holder with the necessary means for the execution of the assignment.
• The mandate holder may advance the sums in question, which will then be reimbursed by the mandate giver.
• The reimbursement of the advanced sums, as well as the payment of the provision, is excluded from the VAT taxable base.
• The mandate holder must document the amounts in question.
• The destination of the amounts to the fulfillment of the obligations incumbent on the mandate holder must be clear.
• The qualification of the sums paid in the context of a mandate without representation is not entirely clear.
• The Agency stated that, since these sums are functional to the fulfillment of the assignment, they are not subject to VAT.

Source: eutekne.info

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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