We are concluding an agreement on construction work with a light entrepreneur, what information are we required to obtain?

If the work specified in the agreement is performed by an entrepreneur, the contractor must obtain from the contracting party a report on tax register entries, an extract from the trade register and a report on tax payments. The contractor has to obtain reports even when the contracting partner is a so-called light entrepreneur. An invoicing service company cannot provide reports on behalf of a light entrepreneur.

In most cases, light entrepreneurs do not have a business ID and are not entered in the Prepayment Register, the Employer Register or the Trade Register or registered as VAT-liable in the Value Added Tax Register. In this case, the contractor can request an informal account from the light entrepreneur on the fact that they have not been entered in the Tax Administration’s registers or the Trade Register.

The most important report that the contractor must obtain is the report on tax payments. If a light entrepreneur does not have a business ID, they will not be registered in the public Tax Debt Register. For this reason, the contractor has to request a certificate of tax payments from the light entrepreneur. The light entrepreneur can get a certificate on their tax payments or a tax debt certificate from the Tax Administration’s MyTax service.

The contractor can ask the light entrepreneur to submit a certificate on tax payments by email, for example. In the same message, the light entrepreneur can indicate in the text field that they do not have a business ID and therefore cannot provide tax register entries or a trade register extract. This way, the contractor has fulfilled its obligation to check.

The contractor must keep the reports received for two years after the end of the work specified in an agreement.