5. The VAT on purchases by businesses registered for VAT purposes will accrue to the tax administration with which the respective business is registered.
   
   
   Businesses will register for VAT purposes with the tax administration of the side of their residence, or on the side of their ongoing operation. There will be clearance of VAT revenues between the Israeli and Palestinian VAT administrations on the following conditions:
   
   
1. The VAT clearance will apply to VAT on transactions between businesses registered with the VAT administration of the side in which they reside.
   
   
2. The following procedures will apply to clearance of VAT revenues accruing from transactions by businesses registered for VAT purposes:
   
   
1. To be acceptable for clearance purposes, special invoices, clearly marked for this purpose, will be used for transactions between businesses registered with the different sides.
   
   
2. The invoices will be worded either in both Hebrew and Arabic or in English and will be filled out in any of these three languages, provided that the figures are written in "Arabic" (not Hindi) numerals.
   
   
3. For the purpose 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 20th 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:
   
   
1. The number of the registered business issuing it;
   
   
2. The name of the registered business issuing it;
   
   
3. The number of the invoice;
   
   
4. The date of issue;
   
   
5. The amount of the invoice;
   
   
6. The name of the recipient of the invoice.
   
   
5. The clearance claims will be settled within 6 days from the meeting, through a payment by the side with the net balance of claims against it, to the other side.
   
   
6. Each side will provide the other side, upon demand, with invoices for verification purposes. Each tax administration will be responsible for providing invoices for verification purposes for 6 months after receiving them.
   
   
7. Each side will take the necessary measure to verify the authenticity of the invoices presented to it for clearance by the other side.
   
   
8. Claims for VAT clearance which will not be found valid will be

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