The A1 Certificate

Introduction

This document covers the A1 certificate: the European document that proves in which country a professional’s social insurance contributions are paid. It builds on the knowledge document on foreign suppliers and goes deeper into this topic.

After working through this document, you will be able to:

• explain what an A1 certificate is and why it matters;
• state where and when a professional must apply for an A1 certificate;
• state the validity period and the main points of attention;
• recognise the risk of a missing or invalid A1 certificate.

1. What is an A1 certificate?

A1 is the name of a European form, used by all countries of the European Union. An A1 certificate is a document that proves in which country a professional’s social insurance contributions are paid. If there is a valid and complete A1 certificate, you can rely on the social insurance contributions being correctly paid in the professional’s country of residence.

2. Why is this important?

Without a valid A1 certificate, we as the hirer risk being held liable under chain liability (ketenaansprakelijkheid) for unpaid social insurance contributions. These contributions can be claimed up to five years back, and the costs can be enormous.

An additional risk to watch closely: in lending and onward-lending constructions via intermediaries, the A1 certificate can be invalid. If there is no direct link between the original employer and the host party in the Netherlands, Dutch social insurance liability applies after all, with all the tax and legal consequences that entails. This is precisely what we need to watch for in our own chain constructions.

3. Where and when do you apply for an A1 certificate?

• Does the professional work in more than one country? Then they apply for the A1 with the competent authority of the country where they live.
• Is the professional a posted worker or self-employed person? Then the A1 is applied for in the country of origin.

In principle, the A1 form must be applied for before the international assignment begins, although it can also be applied for retroactively. The application is submitted to the social security authorities of the country whose social security system the professional will be subject to.

4. Validity period

In the case of a posting, the A1 form is issued for the duration of the posting, with a maximum of 24 months. This period can only be extended on the basis of agreements between two member states, up to a total period of a maximum of 5 years. After that, the employee must in principle switch to the social insurance legislation of the country of work.

5. Practical points of attention

• Option 3.1 ticked? If we receive an A1 certificate on which this option is ticked, we may not hire this person.
• Maximum duration for postings: the form is issued for the duration of the posting, with a maximum of 24 months.
• Work location correctly stated: under point 5.2 the A1 must state the work location of the client, not that of our own organisation.

Recording in Select/Striive

This step is opened automatically based on the answers in the fiscal domicile questionnaire. An issue date and an end date must be entered.

6. Frequently asked questions

“I already pay social contributions in my own country, so why do I need to apply for an A1?”
Under Dutch law, everyone who works in the Netherlands must pay social contributions. However, the Netherlands has agreed with European countries in tax treaties that holding an A1 certificate from the country of residence or taxation prevents double charging. Without that certificate, Dutch contribution liability therefore applies in principle.

“The SVB says I don’t need to apply for an A1 in the Netherlands, what now?”
If you live in a country other than the Netherlands, you apply for the A1 with the equivalent authority in your country of residence, not with the SVB in the Netherlands.

7. Why this is relevant to us

• The risk is real and can reach back five years: chain liability for unpaid social contributions is not a theoretical risk.
• Our own chain constructions are a point of attention: the nuance that an A1 certificate can be invalid in lending and onward-lending via intermediaries without a direct link applies directly to how we set up links in the chain ourselves.
• Practical checkpoints are easy to miss: option 3.1, the correct work location under point 5.2, and the validity period are concrete things to check as standard.
• Link to other knowledge documents: this topic builds on the knowledge document on foreign suppliers and is closely related to the 183-day rule and posted workers. All three often apply to the same professional at the same time, but concern different areas of law (social security, tax, and employment law).

8. Glossary

9. More information

This document is not legal or tax advice. If you are unsure about a specific situation, contact contract management or Legal.