Is an e-invoice with a blocked account possible?
If you hire temporary workers or occasionally send or second staff to the Dutch market, you may be faced with a g-bill. A g-rekening is a blocked bank account into which taxes or social security contributions can be paid. Wondering if this is also possible via an e-invoice? We're going to explain that!
Let's start with the basics first. Because what is a g-rekening and what is the purpose of this account?
- What is a g-rekening?
- Why a g-rekening?
- How does a G account work?
- Can an e-invoice be used with a g-rekening?
What is a 'g-rekening'?
A g-rekeningt is a blocked bank account where only payroll taxes and/or VAT can be paid to the tax authorities. So you cannot make any other payments with it. The account is used by companies that provide staff or hire staff, such as employment agencies, contractors and security companies. By the way, a g-rekening is something typically Dutch and you will not find it in other countries.
How does a g-rekening work?
An amount is reserved for the payment of social security contributions. Because no other bills are paid from a G account, you can be sure that this is properly arranged. A G account can be recognized by the numbers in the account number. A G account number always contains the numbers 099, immediately after the bank code. You can apply for a g-rekening from the Tax Authorities. Once this has been arranged, you can go to the bank to open a G account.
Why a g-rekening?
With a g-rekening, the person who hires people (the hirer) covers himself against liability risks. When work is outsourced to a subcontractor and he does not pay payroll taxes to the tax authorities, the hirer can be held liable. To prevent this, the g-account was created. This is all regulated in the Chain Liability Act (Wka). The Wka prevents contractors and subcontractors from abusing work when paying social security contributions. If you outsource work to a contractor and this in turn to subcontractors, you can be held liable if the (sub)contractor does not pay payroll taxes to the tax authorities. If the contractor outsources again to a subcontractor, a chain of liability is created. Each link in the chain is responsible for all subsequent links in the chain.
An e-invoice with a g-bill, is that possible?
Because the g-bill is typically Dutch, there is no room for the g-bill within the European core bill (EU-N). We have solved this with an NLCIUS extension, similar to the energy e-invoice. A g-bill can be included in the e-invoice in two ways:
- If the customer has registered the extension, he or she can simply receive one e-invoice containing two bank accounts, one of which is th eg-rekening.
- If he has not done so, two invoices must be sent:
- One that can be sent to the normal bank account. This is the amount without the amount that must be credited to the g-rekening.
- One that is sent to the other bank account, where only the amount of the g-rekening is received. There must be a special code there, so that you know that the two invoices belong together.
In short, we can easily arrange sending e-invoices with a g-rekening for you! And as a user you only benefit from it. So an e-invoice with a g-bill is possible!