# The Partnership

Source: https://www.opensourceeurope.org/docs/how-it-works/expenses/the-partnership/

## Legal Relationship: Indirect Representation

The relationship between your Collective and Open Source Europe (OSE) 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.
* OSE acts as a fiscal host and intermediary, not as the legal representative or owner of your funds or operations.

> **Danger:** Your Collective must not use OSE's tax identification number (e.g. VAT number) to invoice or to register. If you need a tax number, you are responsible for getting your own under local law.

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## Invoicing Guidelines

To stay compliant with our hosting terms:

* Invoices must be addressed to the Collective or the person who placed the order. OSE acts only as the payer for these purchases. Collectives must not use OSE’s legal name or VAT number to have invoices issued.
* 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.

> **Danger:** If an invoice is wrongly addressed to OSE, 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

Ordinary external donations may be made to identified nonprofit organisations after OSE has reviewed and approved the beneficiary, purpose and funding conditions. Contact OSE before committing or requesting payment. Other types of recipient require a specific assessment, and OSE does not promise to accept them.

Some funds come under a grant agreement or for a restricted purpose. Before OSE passes on such funds, it checks whether the transfer is permitted and which obligations still apply. Any required funder approval must be obtained. A transfer does not automatically release OSE from its responsibilities under the original funding agreement.

After OSE has approved the arrangement:

1. Ask the recipient to submit an expense through your Collective's page.
2. Include:
   * A signed letter from the beneficiary that confirms the purpose and amount.
   * A copy of their incorporation document.
   * Their bank identification document.

> **Danger:** The ordinary external donation route is for identified nonprofit organisations. Other cases require specific assessment and are not automatically accepted. A payment in exchange for goods, services or visibility is not treated as an ordinary donation. Contact OSE before you make that commitment.

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## VAT & Nonprofit Status

For purchases by a Collective, invoices must be issued to the Collective or the person who placed the order. OSE acts only as the payer. Do not use OSE’s legal name or VAT number.

VAT treatment depends on the specific transaction and the rules that apply to it. Do not assume one rule applies to every purchase. Ask the supplier or an accountant about exemptions, reverse charge or VAT recovery.

> **Note:** [Read more: VAT in Europe and how it works in OSE](https://www.opensourceeurope.org/docs/how-it-works/expenses/the-partnership/vat-in-europe-and-how-it-works-in-ose/)

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## Questions?

Email us any time at <home@opensourceeurope.org>. We're happy to help!