Business services

Cross-border service provision

What conditions must a business meet for the international provision of services within the EU? If you are planning to provide services abroad, it is important to know that a Slovak business license should suffice for providing services in another EU Member State but certain conditions must be met.

One of these conditions is the temporary nature of the services provided. For international provision of services, this condition is crucial and is related to aspects such as regularity, duration, repetition and continuity. Although the term "temporary" is not uniformly defined throughout the EU, a service that is provided temporarily is generally considered to be limited and has a specified time frame.

It is important to keep in mind that individual EU countries interpret the temporary provision of services differently and have different legislative provisions in this regard.

International provision of services can also be carried out for more than a few years, provided that the condition of temporary provision of services (i.e. a specified time frame) is met. However, this does not mean that you do not have to comply with specific legal regulations of the country where you want to provide services. In countries where there is no upper limit for temporariness, each case of international provision of services must be assessed individually.

Consulting

Doing business in other countries brings various challenges and administrative obligations that can be complicated for many business owners. We are here to provide our clients with the necessary advice and help them overcome all obstacles and problems related to doing business abroad.

One of our main areas of focus is providing advice on business activities in Germany, Austria, and Switzerland. We mainly deal with registration and reporting obligations in these countries.

Slovak business owners can offer these services without having to establish a business or branch in foreign countries. However, they must fulfill the so-called reporting obligation and notify the relevant authorities of the respective state. It is important to find out the conditions of the reporting obligation in advance in each country because each state has its own rules and procedures.

We offer not only advice on fulfilling administrative obligations but also help with administration and obtaining the necessary permits. We will guide you through the whole process, from the first contact with foreign authorities to the completion of all administrative steps. We will save you time that you would have to invest in obtaining information and fulfilling administrative obligations and ensure that your business activities abroad comply with all local regulations and rules.

Germany

Customs - Registration at the German Customs Office

To send your employees to work in Germany, it is mandatory by law to register them at the German Customs Office. We will arrange the registration of your employees at the German Customs Office.

Freistellung - Exemption from Withholding Tax

Payments for construction services are subject to special withholding tax under German regulations. Some service recipients (clients) must withhold a tax deduction of 15% from the domestic construction services equivalent value. The withheld amount is paid to the income tax office responsible for the payer's taxation. The withholding tax does not have to be executed, among other reasons, if the supplier (contractor) has presented a valid exemption certificate from the withholding tax (Freistellung) to the client at the time of payment.

Bauabzugsteuer - Refund of Construction Withholding Tax

In the case of withholding tax deduction, you can request a refund after the end of the corresponding calendar year.

Handwerkskammer - Notification of Activity to the Trade Guild

Permission to carry out activities for companies from EU and EEA member states grants an unrestricted right to provide services - in Germany, they can temporarily conduct "cross-border" business without a branch or establishment. For certain activities, you must be registered in the German trade guild.

SOKA BAU - German Holiday Fund

In the case of sending your employees to work on construction projects in Germany, you are required to register them in the holiday fund, the so-called SOKA BAU. We will take care of the registration of your company in the holiday fund and the registration of your employees as well as the payment of holiday entitlements.

Steuernummer - German Tax Identification Number

The German tax identification number is assigned to business entities, such as sole proprietors entrepreneurs or s.r.o. (LLC) businesses operating in Germany. It is also important if entrepreneurs want to apply for Freistellung, i.e. exemption from construction withholding tax of 15%, which they would otherwise have to pay.

Austria

Employee posting reports.

Refund of withholding tax (requesting withheld funds).

Processing the application for company registration on the BUAK holiday fund.

Processing of the application for employee registration in the BUAK vacation fund (for the employee).

Notification of activity at the federal ministry.

Reimbursement of contributions, exemption from contributions from the Gebietskrankenkasse.

Switzerland

Short-term income activity in Switzerland not exceeding 3 months.

Notification of short-term employment within a maximum of 90 calendar days for a company / individual and calendar year is not required in Switzerland, but must be reported to the relevant Swiss authorities.

The obligation applies both to employers who send workers to Switzerland and to sole proprietors.

Notification must be made electronically at least 8 days before the start of the activity.

We are happy to assist you with registration and reporting obligations.

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awite s. r. o., Sládkovičova 1222/73, 02404 SK - Kysucké Nové Mesto, Executives: Stanislava Šutá, Registrierung: Okresný súd Žilina vložka č. 71514/L

Identification: 54574633, VAT number: 2121723912, VAT identification number: SK 2121723912