Decision ID: 003389

In October 1995 the 1971 Fund Assembly recalled that the 1971 Fund had encountered certain difficulties in the application of Aricle 34.2 of the 1971 Fund Convention in respect of fees for work carried out by lawyers and other experts on behalf of the Fund. It was also recalled that the Assembly’s had taken the position that such work should be considered as fulfilling the criterion of ‘important work necessary for its official activities’ and that the Governments of Member States were thus under an obligation pursuant to Article 34.2 to take appropriate measures for the remission or refund of the amount of indirect taxes or sales taxes included in the costs of such services. The Assembly noted with satisfaction that the Ministry of Finance of the State concerned had acknowledged in a letter to the 1971 Fund’s lawyer that fees paid by the Fund to lawyers and other experts should not be subject to the payment of VAT and that the Fund was entitled to refund of the amounts thus paid in VAT.

Date: 30.09.1995
Category: Application of the Conventions
Subject: Interpretation of Article 34.2 of the 1971 and 1992 Fund Conventions regarding reimbursement of taxes