Chamber of Commerce Says Cross-Border Services Act Creates Confusion

By , 05 Mar 2018, 11:08 AM Business
Chamber of Commerce Says Cross-Border Services Act Creates Confusion www.gzs.si

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Calls for greater simplicity and harmonization. 

STA, March 5, 2018 – The Chamber of Commerce and Industry (Gospodarska zbornica Slovenije, GZS) has expressed criticism of the cross-border services act, which entered into force at the beginning of the year, as it believes it hinders business opportunities for companies and puts them in a rather uncertain position.

"Numerous companies which do business abroad, primarily in the EU, are facing inconsistencies in the introduction and implementation of the new legislation," the GZS said in a press release on Monday.

It is necessary to establish a single and transparent system which would support and not hinder companies, said the GZS, which has found many problems in the first two months of the implementation of the act.

According to the chamber, documentation, rules and instructions for the procedure to obtain A1 forms for posted workers have not been harmonised with the changed legislative conditions.

An additional obstacle is the late adoption of the relevant tax legislation without clear and harmonised explanations.

The chamber added that different interpretations of the term of posted worker resulted in unequal treatment from the aspect of labour and tax legislation and regulation on social insurance.

"Employers want a simple business environment without constant changes which hinder stability and predictability of operation," the GZS said, calling on the government to establish a single and transparent system.

The act, passed in February 2017 in a bid to prevent abuses in posting workers abroad, transposed the latest changes in European legislation.

In line with the act, posting workers abroad can be provided only for services that the employer is registered for in Slovenia except in cases when workers will work in associated companies.

The act also determines subsidiary responsibility for cases when the foreign employer, a subcontractor or an agency, does not secure pay to the posted workers.

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