A bill streamlining social tax payments for services between individuals is back in government. It would shift tax duties to service providers using platforms.
In the fall of 2023, the Ministry of Finance proposed a plan to streamline the payment of social tax. Under current law, when a private individual orders a service, such as cleaning, repairs or childcare, from another individual, the person ordering the service is responsible for registering the service provider in the employment register and paying social tax.
In practice, this virtually never happens. According to the bill’s explanatory memorandum, only about €6,000 in social tax is collected per year under this system. The bill would eliminate this obligation entirely, shifting the duty to pay social tax — just as with income tax — to the person providing the service.
The bill also clarifies how social tax should be handled when services are provided through digital platforms, such as food delivery via Bolt or Wolt.
“A private individual ordering a service is unlikely to realize or be aware that, for example, when ordering food from a courier, they are legally required to register the service provider in the employment register, file a tax declaration (TSD) and pay social tax and social security contributions,” the explanatory memorandum states.
Read more: ERR.EE
