Identity Checks, the BSN, WAADI, and the G-Account: Knowledge Document for the Organisation

Introduction

This document covers three compliance topics that may look unrelated at first glance, but are closely connected in practice: identity checks and the BSN (Dutch citizen service number), the WAADI registration requirement, and the G-account. Together they form the building blocks of the same risk: limiting chain liability and hirer's liability when we hire in or pass on personnel.

The logic behind this order is simple:

1. First, we need to know who is actually working (identity check and BSN).
2. Then, we need to know whether the party supplying this personnel is legally allowed to do so (WAADI).
3. And if things still go wrong — the supplier fails to remit payroll tax — a financial safety net is needed (the G-account).

After going through this document you will be able to:

• explain why and when we may and must record a BSN;
• describe what the anonymous rate is and why it is so high;
• explain what the WAADI registration requirement involves, and when it does or does not apply;
• state the percentages and purpose of the G-account;
• describe the relevance of these topics for HeadFirst Group.

1. Identity checks and the BSN

Why are we allowed to record the BSN?

Some suppliers and professionals refuse to provide their BSN, often arguing that this would violate the GDPR. That is a misconception. Organisations outside government may use the BSN if a law permits it, and only for the purpose described in that law. In the context of hiring in and passing on personnel, this is specifically regulated in the Implementing Regulation on Mandatory Use of the BSN (Uitvoeringsregeling verplicht gebruik BSN). There is therefore a concrete legal basis — this is not a GDPR violation.

Why do we do this?

• If we, as the party hiring in professionals who are employed by another employer (the supplier or subcontractor) — professionals who then work at our client's premises — want to limit the risk of hirer's liability or chain liability, we must be able to demonstrate their identity to the Tax Authority.
• We are also legally required to keep a copy of the identity document on file for foreign nationals (professionals from outside the EU/EEA).
• We are also legally required to provide our client with a copy of the identity document and residence permit for professionals from outside the EU/EEA.

How do we verify identity?

To be able to demonstrate identity, we check the original identity document — without copying or scanning it. This can be done in three ways:

• CheckedID
• VictoriaID
• In person

As the hiring party or contractor, HeadFirst Group then records, among other things, the following data in its administration:

• Name, address, and residence details;
• Date of birth;
• Citizen service number (BSN);
• Nationality;
• Type of identity document, number, and validity period;
• Copy of the identity document, in case of a nationality from outside the EU/EEA;
• Copy of the residence permit, in case of a nationality from outside the EU/EEA.

What happens if this is not recorded properly?

If the Tax Authority applies the hirer's liability scheme, it establishes the liability debt of the hiring party or the party passing on personnel based on properly maintained records. If there are no proper records? Then the Tax Authority applies the anonymous rate. This is the highest rate for payroll tax: currently 52%, with no allowance for tax credits. This high rate is not intended as a penalty, but as a measure to enable the executive authorities to correctly levy tax and contributions when an employee's identity cannot be demonstrated. This is precisely why we always record this data.

The broader concept of "employer"

An important nuance: the definition of "employer" within the scope of the Foreign Nationals Employment Act (Wet arbeid vreemdelingen) is broader than the definition under civil law. Anyone who hires in personnel is also regarded as an employer, and therefore bears an employer's responsibilities. A foreign worker who is hired in can therefore have more than one employer: the intermediary, and the party hiring them in. The same applies to clients and (sub)contractors. This means that responsibilities in this area do not automatically rest with a single party in the chain.

2. WAADI: when is registration required?

What is the WAADI?

The Waadi (Allocation of Workers by Intermediaries Act) contains the rules for hiring in, hiring out, and placing personnel, such as agency workers. The Netherlands Labour Authority supervises compliance with this law. The Waadi protects workers against exploitation by disreputable staffing agencies, and concerns the making available of workers (TBA — Ter Beschikking stellen van Arbeidskrachten).

The definition of TBA: making workers available to another party for remuneration, to carry out work under that party's supervision or direction, other than under an employment contract concluded with that party.

Three exceptions

The Waadi does not apply if:

1. workers are made available in connection with a delivered item or a completed work (for example, a technician who comes to install a machine built by their own employer);
2. it involves assistance without a profit motive, where the workers are employed by the party making them available, for work within that party's own business (collegial secondment);
3. workers are made available within the same company or the same group (intra-group secondment).

When does TBA apply?

TBA within the meaning of the Waadi applies when all of the following elements are present, and none of the three exceptions apply:

• There is a worker;
• This happens for remuneration;
• To another party;
• Under that party's supervision and direction;
• Other than under an employment contract;
• Work is being carried out.

If one of these elements is missing, there is no registration requirement.

Special situations: partners and self-employed professionals

TBA normally involves three parties: the party making workers available, the party hiring them in, and the worker. With a partner in a partnership or a self-employed professional, three different situations can occur:

1. A self-employed professional or partner who goes to work for another party themselves: here there are, in fact, only two parties — the party making the worker available and the worker are effectively the same person. This therefore does not fall under the Waadi and is not subject to the registration requirement.
2. A third party that acts as the supplying party for remuneration, while all other elements of the TBA definition are met: here TBA does apply, and therefore so does the registration requirement.
3. A self-employed professional who is the majority shareholder-director (DGA) of a BV: here the BV is the supplying party and the DGA is the worker. If all elements are met and none of the exceptions apply, this in principle does fall under the Waadi. However, a specific exception has been made for the DGA, set out in the 2014 Policy Rules on Imposing Fines under the Allocation of Workers by Intermediaries Act.

If TBA applies and the Waadi is applicable, this activity must be registered in the trade register. This registration requirement applies to everyone who makes workers available for remuneration — not just staffing agencies. Every company carrying out this activity, whether as a main or secondary activity, must register.

Commercial versus non-commercial

• Commercial (TBA as the main activity, such as staffing or secondment agencies): the SBI code registered with the Chamber of Commerce must be one of the following:
  • 78201 Staffing agencies
  • 78202 Lending agencies
  • 78203 Job pools (employment projects)
  • 7830 Payrolling (personnel management)
• Non-commercial / incidental (TBA as a secondary activity, or arising from other business activities — think of a construction company that temporarily lends out a number of builders): here it is sufficient to notify the Chamber of Commerce, after which the so-called Waadi indicator is activated. Hiring parties can then verify that the company has met the registration requirement.

How do you check a WAADI registration?

In principle, the supplier must upload a screenshot of the WAADI registration into the system; this is then checked by contract management. Want to do a check yourself? You can use the free Waadi check on the Chamber of Commerce website: enter the supplier's Chamber of Commerce number, and the check shows whether the company is registered as a provider of workers. Always do this check before entering into business with a supplier.

What does non-compliance with the registration requirement cost?

For violations of the registration requirement, the Netherlands Labour Authority applies a fine scale ranging from €8,000 (fewer than ten workers made available) to €32,000 (thirty or more workers). This scale applies to both parties: the company making the workers available, and the company hiring them in. For a second violation, these amounts double; for a third violation, they triple.

3. The G-account: the financial safety net

What is a G-account?

The G-account is a blocked bank account that can only be used to pay payroll tax to the Tax Authority, or for transfers to other blocked accounts. There is no legal obligation to use a G-account when contracting work or hiring in personnel — except if you want to achieve full exemption from hirer's liability. In that case, it is necessary.

What percentage must be paid in?

The percentage to be paid in depends on the certification status of the supplier:

• For an SNA-certified supplier (NEN 4400): at least 25% of the invoice amount including VAT, or 20% where the VAT reverse-charge scheme applies.
• For a non-SNA-certified supplier: 55% of the invoice amount including VAT, or 40% where the VAT reverse-charge scheme applies.

These percentages should correspond as closely as possible to the share of taxes and contributions in the invoice. It is therefore not standard practice (and the Tax Authority may regard it as improper use of the G-account) to simply pay in the entire invoice amount.

The exoneration scheme

By paying in sufficiently to the supplier's G-account, and meeting the other conditions (such as being able to correctly demonstrate the identity of the hired-in employee), a hiring party can rely on the exoneration scheme (disculpatieregeling). When all conditions are met — for both the hiring party and the supplying party — hirer's liability can even be fully excluded. This is the most significant tax advantage of working with an SNA-registered supplier.

4. Looking ahead: changes to the G-account from 2027

Two developments are relevant to know about:

• The Wtta (from 1 January 2027): with the introduction of the Wtta (see also the Bovib knowledge document), hirer's liability will change. A statutory presumption will be introduced that the liability debt is set by default at 35% of the invoice amount billed by the supplying or passing-on party to the hiring party. Any amounts already paid into the G-account will be deducted from this.
• A possible mandatory G-account: the Tax Authority has carried out an exploratory study (completed in January 2026) into making the G-account mandatory for suppliers in the future, in order to prevent suppliers' tax debts from remaining unpaid. This is not yet a final decision, but it is a signal that the use of the G-account is set to become even more firmly anchored in regulation over time.

5. Why this matters to us

• These three topics are the baseline, not the exception: identity checks, WAADI registration, and the G-account are not incidental checks, but structural parts of every situation involving hiring in or passing on personnel.
• The financial incentive is significant: the anonymous rate (52%) and the WAADI fines (up to €32,000, doubling or tripling on repetition) make clear that incomplete record-keeping costs money directly — not only for clients, but potentially for us as well.
• Responsibility does not rest with a single party: both under the Waadi (the supplying party and the hiring party can both be fined) and under the Foreign Nationals Employment Act (multiple "employers" possible), the risk is shared. This underpins why we must actively check things ourselves, rather than simply relying on the supplier.
• Regulation around the G-account is not standing still: with the Wtta in 2027 and the possible mandatory G-account, this topic will continue to evolve in the coming years — a reason to periodically update this knowledge document.
• Connection with other knowledge documents: this topic connects to the SNA knowledge document (the G-account percentages and WAADI registration already appear there briefly) and the Bovib/Wtta knowledge document (the upcoming change to hirer's liability).

6. Glossary

Further information

This document is not legal advice. For the full regulations: the Implementing Regulation on Mandatory Use of the BSN, the Allocation of Workers by Intermediaries Act, and the Tax Authority's information on hirer's liability and the G-account. To check a WAADI registration: the Waadi check on the Chamber of Commerce website. If in doubt about a specific situation: contact Legal or contract management.