As a general rule, European Union (EU) citizens can freely travel to other EU countries, as well as the European Economic Area (EEA) countries (Iceland, Lichtenstein, and Norway) and Switzerland.
However, if the purpose of the visit is business-related, employees must provide proof that they’re paying into their home country’s social security system.
Employees might be double-taxed if they cannot provide the necessary documentation. Or they could also face legal issues since EU law mandates that individuals can only pay social security taxes in one country.
Employers can prevent this by obtaining an A1 certificate for employees prior to any business trips. Self-employed individuals must also obtain an A1 certificate before traveling on business within this region.
Let’s dive into what an A1 Certificate is, when you need it, and how to get one.
What is an A1 Certificate?
An A1 Certificate is a formal document confirming that the certificate holder pays social security contributions in another European country. It’s necessary for EU/EEA residents traveling to another European country for business purposes, as well as for remote workers operating from another European nation and self-employed professionals.
Even individuals who are in another European country for a short business trip, such as a conference or training session, must obtain an A1 certificate.
The certificate maintains social security benefits for traveling workers in the country where they live and prevents dual social security contributions. Without an AI Certificate, the traveler may be subject to the social security laws of the country they’re visiting in.
When Do You Need an A1 Certificate?
An A1 certificate is mandatory for employees or self-employed persons temporarily working in a different EU/EEA country for general business purposes. This includes business trips the individual initiated themselves, as well as trips undertaken at the direction of their employer. This requirement also applies to business trips to Switzerland or treaty countries.
Otherwise, per the Posted Workers Directive, an employee temporarily working in another EEA or EU member state would be required to pay local social security taxes on the day they arrive.
For example, if a salesperson in France travels to the company’s office in Germany to train new employees for one week, they would need an A1 certificate. Otherwise, the salesperson risks having social security contributions deducted in both France and Germany.
Is an AI Certificate Mandatory?
Yes, an A1 certificate is required in every EU member state, EEA country, and Switzerland.
Without one, the traveler may have difficulties proving their social security status and can face hefty fines, loss of social security coverage in their home country, retroactive social security contributions, and even potential business restrictions in the country they’re visiting.
Where is the A1 Certificate Valid?
An A1 certificate is valid in the EU, the EEA — which is all EU member countries, plus Iceland, Norway, and Liechtenstein — as well as Switzerland.
Here’s a full list of the EU member states:
- Austria
- Belgium
- Bulgaria
- Croatia
- Cyprus
- Czech Republic
- Denmark
- Estonia
- Finland
- France
- Germany
- Greece
- Hungary
- Ireland
- Italy
- Latvia
- Lithuania
- Luxembourg
- Malta
- Netherlands
- Poland
- Portugal
- Romania
- Slovakia
- Slovenia
- Spain
- Sweden
EEA countries not in the EU:
The certificate’s validity also extends to several non-EU states that have been integrated into the European single market, including:
- Akrotiri and Dhekelia
- Georgia
- Moldova
- Northern Ireland
- Switzerland
- Turkey
- Ukraine
While the Western Balkans are also part of the European single market, the A1 certificate isn’t directly applicable there, as the countries in the region have their own social security regulations.
Also, it’s important to keep in mind the list of countries that use A1 certificates may change as treaties and policies evolve.
How to Obtain an A1 Certificate
The employer is responsible for applying for the A1 certificate on behalf of their employees, but self-employed workers must apply on behalf of themselves. The company or individual must request an A1 form from the social security authority of the employee’s home country, as well as inform the host country’s authorities before the upcoming business trip.
The A1 application process can vary from country to country, but the form — which is available online in each country’s official language — typically asks for details about the employment, length of the assignment, and other specific information regarding the business travel.
Processing times vary; although applications are usually processed within 5-10 business days. However, during peak periods, processing times may take longer. Some countries do offer expedited processing options.
Although it’s possible to obtain A1 certificates retroactively, it’s strongly recommended that applications be filed in advance to avoid complications.
Once the A1 application is approved, the applicant receives the A1 certificate in digital or paper form. The employee must provide copies to their employer and the relevant social security institutions in the host country.
Worth noting: An A1 certificate is specific to one business trip. The employer or self-employed person must apply for a new certificate for any subsequent business travel.
How Long is an A1 Certificate Valid?
The A1 certificate is good for 24 months and covers the specific duration of an employee’s trip abroad.
If the employee needs to extend their trip, they can apply for a new A1 certificate before their original one expires. There’s also the option to switch to the other country’s social security system.
Employees who often travel to other European countries can also apply for a one-year A1 certificate if they work across borders at least once a month or at least five days per quarter.
What are the Penalties for Not Obtaining an A1 Certificate?
It’s mandatory for employees to have an A1 certificate when traveling to another EU/EEA country for work. Without one, they won’t be able to prove which country they pay social security in, and could be penalized
The penalties for not securing an A1 certificate in advance of business travel can include:
- Fines: These vary from country to country, but can be up to EUR 10,000 in Austria, for example. They can also be imposed on both employers and employees.
- Denial of entry: Travelers may not be allowed to enter the destination country.
- Difficulty on the return journey: Employees may also experience issues when returning to their home country.
- Social security payments: Business travelers may be required to pay social security in the country they’re visiting and at home for every day spent working abroad.
- Benefits denial: Employees may not be eligible for accident insurance benefits if they experience a work-related accident during their visit.
- Denied access: Travelers may be prevented from accessing their employer’s workspace in the country they’re visiting. They may also be barred from exhibition and convention centers.
Check out some examples of just how costly it can be when conducting business travel in Europe without ensuring proper compliance.
Stay Compliant with Business Regulations with RemoFirst
As we’ve established, an A1 certificate is mandatory for employees conducting business across European borders and it’s the employer’s responsibility to obtain that certificate. Failure to do so can have serious consequences.
An easy way to ensure that your European employees remain compliant during their travels is to partner with an Employer of Record (EOR) like RemoFirst.
An EOR assumes legal responsibility for hiring and managing employees on behalf of your company, and it takes on all formal employment tasks, including global payroll and adherence to local labor laws.
Book a demo to learn how RemoFirst can help your company hire and stay compliant in 185+ countries.
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