2011/2 Indirect Taxes - The approach of the Association
- Date: 30/11/2011
Indirect Taxes (100 kB)
INDIRECT TAXES – THE APPROACH OF THE ASSOCIATION
As Members will be aware, pursuant to the Association’s Rules, all legal and claims related services are supplied to a Member notwithstanding any involvement on the part of the Association. For many years it has been the general practice of the Association, at the Managers’ discretion, to waive the requirement of prior payment by a Member and to settle directly with claims service suppliers those fees and disbursements which have been incurred in relation to services supplied to a Member, provided they have been incurred with the Managers’ prior approval.
Many jurisdictions, both within the European Union (“EU”) and elsewhere commonly require the payment of indirect taxes on the supply of claims related services to a Member. Subject to the terms of this Circular the Association’s position is that it will, in addition to the costs of the services themselves, meet indirect taxes which may be levied on such services.
The following sets out the procedures as to how invoices from claims related service providers should be rendered. This Circular replaces Circular 94/2 which was issued in April, 1994 in relation to VAT Payment Procedures.