We are concluding an agreement with a light entrepreneur. What clarifications should we obtain on the light entrepreneur?
The contractor must obtain clarifications also on the compliance with the obligation to check with regard to a light entrepreneur. The invoicing service company cannot provide clarifications on behalf of the light entrepreneur.
If work pursuant to the contract is only performed by the light entrepreneur him-/herself, the Act on the Contractor’s Obligations and Liability when Work is Contracted Out is applied, if the work performance regards construction operations. In most cases, the light entrepreneur does not have a business ID, and is not registered 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 requests an informal account from the contracting partner on the fact that it has not been registered in the Tax Administration’s registers or the Trade Register. If the light entrepreneur does not have a business ID, it will not be registered in the public tax debt register. The contractor must request a certificate concerning the tax payment status directly from the contracting partner. A light entrepreneur is able to obtain a certificate on tax payments or a tax debt certificate regarding its own operations, for example, in the Tax Administration’s MyTax service.
If the contractor’s work is performed by a light entrepreneur’s employee, the Act on the Contractor’s Obligations and Liability when Work is Contracted Out is also applied to other contracts than those regarding construction operations. In this case, the contractor must, in addition to the clarifications indicated above, obtain accounts of the workers’ pension insurance, the applicable collective agreement or the principal terms of employment, provision of occupational health care services and, in construction operations, also a certificate on accident insurance.