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