What main forms could a collaboration agreement take?

A collaboration could take the form of:

  • A joint operation, where two or more organisations perform functions contributing to a project. Sometimes known as “JANE” (Joint Activity, Not an Entity)
  • A joint venture, where a new entity may be created, owned and controlled jointly between collaborating organisations. Though this does not need to be incorporated, if it amounted to a partnership then the joint venture would be a separate entity for VAT purposes and may need to register for VAT

Each of these have considerations with regards to VAT and whether a separate legal entity is being formed, so professional advice should be taken and due diligence carried out in either case

Want to discuss further?

Ross Palmer

Senior Tax Manager

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