Customer Liability Act and Raksa Notification
What is Customer Liability and who does it apply to? Tili-Seno handles the notifications for you!
The Act on the Client's Obligation to Clarify and Liability When Using External Labor (more familiarly: Client Liability Act) obliges the client to clarify several matters regarding their subcontractor. The law, which came into force in 2007, is intended to combat the grey economy and requires the client to clarify several matters regarding their subcontractor even before the contract begins. The Finnish Labour Inspectorate and the occupational safety and health authorities monitor compliance with the law, and clients who violate the law will be fined 2,000–20,000 euros for negligence – in the worst case, the increased negligence fee is as much as 20,000–65,000 euros. It is therefore very important to clarify everything you need about your contractual partner so that you do not end up paying for it unnecessarily. Please also note that even if you use a foreign subcontractor company, you also have the same obligation to clarify regarding the foreign subcontractor. In the construction industry, the obligation to clarify is even more extensive.
Our office is in the Client Responsibility Trusted Partner program and we are also a Client Responsibility partner. Contact us if you need the Client Responsibility Supervisor package. We can offer it at a very affordable price.
Raksa reporting, Valttikortti card, construction site notifications, the client's obligation to provide information and veronumero.fi.
We are part of the Client Liability Partner Program and can handle RAKSA notifications, Tax number issues and order Valtti cards for you. Vastuugroup.fi's Valvoja package is also available at a very affordable price through us. Ask for more information if you are concerned about client liability issues. We have an expert who is particularly familiar with construction notifications and Valtti card orders, as well as using the Client Liability service.
Main issues to be clarified:
- A statement as to whether the company is registered in the prepayment register, the employer register, and the VAT register.
- Trade register extract
- Proof of tax payment (a tax debt certificate that is clean or a payment plan has been made for the tax debt)
- Certificates of taking out employee pension insurance and paying pension insurance contributions, or proof that a payment agreement regarding overdue pension insurance contributions has been made.
- A statement of the collective agreement or key employment terms and conditions applicable to the work.
- A report on the organization of occupational health care.
- Proof of statutory accident insurance (contracts concerning construction activities).
Tilaajavastuu.fi shares a guide that explains the matter in more detail.
Tilaajavastuu.fi shares a guide that explains the matter in more detail.
Accounting with a bright and encouraging attitude
Construction companies are subject to several different reporting obligations, are you aware of them?
When you hire a new construction worker, your first task is to check that the employee is registered in the tax authority's tax number register, where construction workers are registered. After this, you will find out whether you have sufficient information about the employee, such as address, personal identification number, nationality, work permit if necessary, etc. Due to the Client's responsibility, you must keep the employee's contact information, place of work and working hours for at least two years, i.e. archive the information, so that it can be found if necessary. Once the routines regarding the employee have been taken care of, you need to start thinking about potential subcontractors and collecting the information required by the Client's responsibility.
Additional reporting obligations may arise from the construction site and subcontractors. All of these reports must be made electronically.
Remember that if you are the main contractor on a construction site, you must collect employee information about all employees working on the site and report it to the tax authorities in monthly construction reports. This comes as a surprise to many main contractors and it is often difficult to obtain the information afterwards. You may be required to report the contract information for the cooperation country and the employee information for the employees. The person reporting employee information is also obliged to report the employee information of their subcontractors, meaning that all information must be kept in good order and must be obtained in time so that it is not discovered at the time of reporting that not all information is available or that it is no longer possible to obtain it. Tili-Seno will handle the reports for you, as long as you remember to collect all the necessary information for reporting. Ask us for the data collection form.
Companies report information to the Tax Administration monthly.
Companies and self-employed persons who order construction work must report information to the Tax Administration. The information must be reported either contract-specific or site-specific for all purchased construction contracts if the value of the ordered contract is over 15,000 euros (VAT 0%).
The main contractor of a construction site must report information about all persons working on a shared construction site every month if the value of the entire construction project on the shared construction site is more than 15,000 euros (VAT 0%).
