are situated.

2. When subparagraph a. does not apply, dealers will register for VAT purposes with the VAT administration of the side of their residence, notwithstanding the place of their activity. A corporation will register for VAT purposes according to the residency of the individual holding the majority of its shares which grant rights to distribution of profits.
   
   
3. Special cases of dealers having ongoing operations in the other side without having a permanent place of business there, will be dealt with by the joint committee established according to paragraph 11 below, upon a request of either side.
   
   
4. Each side will provide the other side, upon request, information concerning sales of specific dealers from one side to specific dealers from the other side. Israel will provide the Palestinian tax administration assistance in collecting information concerning the activities in Israel of Palestinian dealers registered for VAT purposes with the Palestinian VAT administration having ongoing operations in Israel, and will enable Palestinian inspectors to follow their activities in Israel, as necessary for tax enforcement purposes and allowed by law.
   
   

5. The VAT on purchases by dealers registered for VAT purposes will accrue to the VAT administration with which the dealer is registered.
   
   
6. The principles set out in paragraphs 1 - 6 of this Article shall also apply to wage - and - profit tax on financial institutions.
   
   
7. There will be clearance of VAT revenues between the Israeli side and the Palestinian side according to the following conditions:
   
   
1. The VAT clearance will apply to VAT on transactions between dealers registered with different VAT administrations.
   
   
2. The following procedures will apply to cleaance of VAT revenues accruing from transactions by dealers registered for VAT purposes:
   
   
1. For transactions between dealers registered with the different VAT administrations special invoices, clearly marked for this purpose, must be used, and they will be accepted for clearance purposes.
   
   
2. These invoices will be worded in both Hebrew and Arabic and will be filled out in any of these two languages or in English, provided that the figures are written in "Arabic" (not Hindi) numerals and that the amounts filled out in the invoice are stated also in NIS. The amount of VAT will be specified both numerically and in words.
   
   
3. For the purposes of tax rebates, such invoices will be valid for six months from their date of issue.
   
   
4. Representatives of the two sides will meet once a month, on the twenty - fifth day of the month, to present each other with a list of invoices submitted to them for tax rebate, for VAT clearance. This list will include the following details regarding each invoice:

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