Understanding VAT in Consortium Agreements: Challenges and Differences from VAT Groups

• Consortium is an agreement where parties commit to jointly carry out a task
• Consortium agreement is not defined by law
• Consortium consists of independent legal entities
• Consortium is not subject to VAT, but transactions within the consortium may be subject to VAT taxation
• VAT group is different from consortium, as entities in a group are treated as one VAT taxpayer
• VAT settlement in consortium is challenging and each case should be analyzed individually
• Consortiums have clients, consortium leader, and other members
• Billing model involves each consortium member invoicing the client for the work done.

Source: zrozumvat.pl

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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