Notification obligation for foreign employers effective from 1 March 2020
As of 1 March 2020, the long-awaited obligation to report all employers from EU countries who come to work in the Netherlands with their staff, will come into effect. The notification must be made in advance and the Dutch entrepreneur who engages the foreign service provider must check whether the notification has been made. The notification obligation also applies to foreign self-employed persons.
What does this mean for you?
As of 1 March 2020, all employers established in the EEA and Switzerland must give advance notice via an online portal when they come to work in the Netherlands with their staff. The customer of the services established in the Netherlands must check the notification. The customer is given a period of 5 days to do so.
What needs to be reported?
The foreign employer must report via an online portal that work will be carried out in the Netherlands. When reporting, the following information must be provided:
- The details of the foreign company (including VAT number)
- The identity of the person making the notification
- The details of the contact person in the Netherlands
- The details of the Dutch client (including Chamber of Commerce and VAT
- The sector to be worked in in the Netherlands (including subsector and SBI code)
- The address of the workplace
- The probable start and end date of the work
- The identity of the person responsible for paying the salary (the employer)
- The identity of the employees (including Social Security number if they have one)
- The expiry date of the work permit, if the worker is a third country national
- The presence of an A1 certificate because of the contribution for the applicable
social security scheme
Self-employed entrepreneurs and their notification obligation
The obligation to report only applies to self-employed entrepreneurs if they work in specific sectors. This applies in particular to the so-called risk sectors (not exhaustive):
- Agriculture and horticulture
- Food industry
- Glass laundry
The self-employed person must report his identity, the details of his company, the identity of his client, the sector in which he is going to work in the Netherlands, the address of the workplace, the expected duration of the work, etc. An annual notification is allowed for small self-employed persons under certain conditions. However, this possibility does not apply in the construction and temporary employment sector.
Sometimes no notification is required - exemption
Because of the practical feasibility and the administrative burden, an exception has been made to the obligation to report for a limited number of categories of activities. If work is only performed in the Netherlands that falls into these categories, the employer will therefore not be required to report. This concerns the following activities:
- workers who carry out the initial assembly or installation of goods supplied for a
period not exceeding 8 days (this exception does not apply in the construction
- employees who carry out urgent maintenance or repairs or software installations
for a maximum period of 12 consecutive weeks within a period of 36 weeks
- business meetings for a period of not more than 13 consecutive weeks in a total
period of 52 weeks
- various other activities such as attending scientific congresses
- various specific types of employees such as researchers, international athletes,
artists, are also excluded, each with their own maximum time limits
Sometimes annual reporting is allowed
For employers with a maximum of 9 employees, a relaxation of the obligation to report has been arranged. They may submit one annual notification if they have performed at least 3 services in the Netherlands in the previous calendar year, are located no more than 100 km from the Dutch border and perform work in a recurring pattern.
Note: The annual notification does not apply to employers in the construction industry, employment agencies, temporary employment agencies and personnel management.
Fines by Inspection SZW
The Inspectorate SZW checks whether employers comply with the rules and can impose a fine. The foreign company that does not report or does not fully report can be fined, but also the Dutch client if it has not checked the notification, has not passed on inaccuracies or does not have a copy of the notification. A fine can also be imposed on the foreign employer if the required documents are not available at the workplace. These include pay slips, working time reports, A1 statements and proof of payment of the salary to the employees.
Reporting online is possible as of 1 February and mandatory as of 1 March 2020.
The online notification system will be available from 1 February 2020. Only new assignments need to be reported. An extension (after 1 March 2020) of an assignment already in progress must also be reported. After the foreign employer has made the online notification, the Dutch client will be informed by email through the notification portal. The client must check the notification and has to make sure that the foreign employer will correct any inaccuracies. The notification must also be saved.
Want to know more?
If you would like to receive more information about the notification obligation or the other obligations associated with hiring foreign service providers in the Netherlands, please feel free to contact us at firstname.lastname@example.org or you can contact your regular contactperson at Taxperience.