3. the VAT amount included in each import entry document.
   
   

3. The Palestinian Authority shall verify and confirm that the list referred to in subparagraph (b) does not include imports the final destination of which is the Gaza Strip or the Jericho Area. The remittance of VAT payments in respect of these imports shall continue to be in accordance with the Gaza-Jericho Agreement.
   
   

12. VAT paid on transactions with dealers registered with Israel by not - for - profit Palestinian organizations and institutions registered with the Palestinian Authority, or by the Palestinian Authority where the transaction relates to powers and responsibilities transferred under this Agreement, will be remitted to the Palestinian Authority in accordance with the clearance system set out in paragraph 11. The same principle will apply to VAT paid on such transactions by Palestinian local authorities, once the powers and responsibilities regarding them are transferred to the Palestinian Authority.
    
    
13. VAT paid on transactions with dealers registered with the Palestinian Authority by not - for - profit Israeli organizations and institutions, by Israeli local authorities, or by Israel, will be remitted to Israel in accordance with the clearance system set out in paragraph 11.
    
    
14. Where the zero VAT rate on transactions by dealers registered with the Palestinian Authority is conditional upon the submission of proof by the dealer that foreign currency has been deposited with a financial institution, the deposit will be made in a financial institution operating in the West Bank. The definition of foreign currency for the purposes of this paragraph may be determined within the JEC.
    
    
15. The two sides will establish a joint committee composed of representatives of both VAT administrations. This committee will deal with all issues requiring coordination and cooperation with regard to this Annex.
    
    
16. VAT enforcement by the Palestinian Authority shall be in accordance with the principles set out in Appendix B attached to Annex V.
    

Appendix A

Laws, Regulations and Military Orders in the Sphere of VAT

1. Law of Excise on Local Production, No 16, 1963, except for the following articles ( Hebrew Version );
   
   

2 (A), 2 (B), 2 (E), 3, 6A (2), 6A (5), 6A (6), 6A (8) 6A (7) - will be subject to principles regarding the tax enforcement

2. Regulations Regarding Excise on Local Production (Judea and Samaria), 1985, except for the following articles (Hebrew Version):
   2, 33, 118, 137, 147, 127 31(A)1, will not apply in relation to authorizing use of "other document" 53 (B), 70,85,86, 87A, 89,92,94, 103, 116, 116A (D) - (E), 117, 119 (D), 129 (C), 139 (B) - will be subject to the principles regarding tax enforcement 35 (A) 2, 35 (A)3, 112, l15A, 116A (C), 119, Chapter 16, 139 (A) -will be subject to principles regarding tax enforcement

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