G-account: What is it and why is it required?

Why do we require a G-account?

When you supply personnel to HeadFirst Group, having a G-account is a contractual requirement for working with us. This requirement applies to all suppliers, including foreign suppliers that provide personnel to work in the Netherlands.

HeadFirst Group holds SNA (NEN 4400) and/or Bovib certifications for several of its operating companies. These certifications set requirements for the way we work with suppliers and how we fulfil our fiscal responsibilities. An important part of these requirements is our ability to pay part of each invoice into the supplier's G-account.

In addition, we are preparing for the introduction of the Dutch Labour Intermediaries Admission Act (Wet toelating terbeschikkingstelling van arbeidskrachten – WTTA). To meet the future admission requirements, we aim to certify all of our operating companies. Therefore, this requirement applies to all suppliers.

What is a G-account?

A G-account is a blocked business bank account that may only be used for:

paying payroll taxes and, where applicable, VAT and other permitted payments to the Dutch Tax Administration;
transferring funds to another company's G-account.

Funds held in a G-account cannot be used freely. This ensures that the reserved part of an invoice is used solely for the payment of payroll taxes and social security contributions.

Although a G-account is not legally required in every situation, it is an important instrument for obtaining protection against hirer liability under Dutch tax legislation.

Why do we pay part of the invoice into the G-account?

When personnel are hired, the client may, under certain circumstances, become liable if the supplier fails to pay the required payroll taxes to the Dutch Tax Administration. This is known as hirer liability.

By paying part of the invoice directly into the supplier's G-account and complying with the other statutory requirements, this liability risk is significantly reduced. When all legal conditions are met, the liability may even be eliminated entirely.

For this reason, we pay part of every eligible invoice into your G-account.

What amount will be paid into the G-account?

The percentage paid into your G-account depends on your certification status.

Certification status	Percentage
SNA (NEN 4400) certified	25% of the invoice amount including VAT
SNA (NEN 4400) certified with VAT reverse charge	20% of the invoice amount
Not SNA certified	55% of the invoice amount including VAT
Not SNA certified with VAT reverse charge	40% of the invoice amount

These percentages are based on the expected proportion of payroll taxes and social security contributions included in the invoice. Therefore, the full invoice amount should not normally be paid into a G-account.

How do you apply for a G-account?

To apply for a G-account, your company must have a Dutch payroll tax number and/or a Dutch VAT number.

The application process generally consists of the following steps:

Apply for a Dutch payroll tax number and/or Dutch VAT number, if required.
Open a business bank account with a Dutch bank that offers G-accounts.
Apply for a G-account. The G-account will be linked to your Dutch payroll tax number and/or VAT number.
Once your G-account has been opened, please provide us with the account number so we can register it in our administration.

More information about the application process is available from the Dutch Tax Administration or your bank.

Important: apply for your G-account in time

We recommend starting your G-account application immediately after entering into a collaboration with HeadFirst Group. The application process may take some time, depending on your circumstances and the processing times of both the bank and the Dutch Tax Administration.

Until we have received a valid G-account or, where a G-account genuinely cannot be obtained, an official rejection letter from the Dutch Tax Administration, we cannot release any payments.

This means that invoices cannot be paid until this requirement has been met. To avoid delays in payment, we kindly ask you to start the application process as soon as possible and notify us immediately once your G-account has been opened.

Foreign suppliers

The requirement to have a G-account also applies to foreign suppliers providing personnel in the Netherlands.

To obtain a G-account, your company must have a Dutch payroll tax number and/or a Dutch VAT number. In addition, you must have a business bank account with a Dutch bank that offers G-accounts.

We recommend that foreign suppliers begin this process well in advance to ensure the G-account is available before services commence.

What if you cannot obtain a G-account?

As a general rule, we cannot make exceptions to the requirement to have a G-account. Without a G-account, we cannot comply with the requirements arising from our certifications, nor can we benefit from the fiscal protection against hirer liability.

An exception may only be considered if you can demonstrate that, despite your best efforts, it is not possible to obtain a G-account.

In such cases, you must provide an official rejection letter issued by the Dutch Tax Administration confirming that a G-account cannot be granted.

If accepted by HeadFirst Group, a temporary alternative may be permitted in the form of a quarterly accountant's statement, prepared by a certified public accountant (RA or AA). Any costs associated with obtaining this statement are entirely at the supplier's expense.

Important

The G-account must always belong to the legal entity that has entered into the agreement with HeadFirst Group.

It is not permitted to use the G-account of a sister company, parent company or any other affiliated entity. Payments made to another company's G-account do not provide fiscal protection and do not comply with the requirements of our certifications.

If you have any questions about the G-account or the application process, please contact your HeadFirst Group representative. We will be happy to assist you.