This report from Denmark covers the issuance by the Danish competent authorities of a “new” A1 certificate for social security for use in the European Union that has a changed look and content.
In October 2018, the competent Danish institution (Udbetaling Danmark)1 started issuing European A1 certificates2 for social security that have a new layout and new content.
It appears that the European Union (EU) member states and the European Commission have not made any announcements about the changes to the certificate even though they have been implemented.
The new certificate fills a full three pages and it can be issued according to the “main rule,” that is, to workers who reside in one country and work exclusively in another country. Thus far, the certificate could only be issued to exceptions to the main rule such as posted workers and multi-state workers, and according to special rules, for example to civil servants, flight crew, etc.
With the new A1 certificate’s enhanced scope, the administrative process for social security – including company registration and payment of contributions – for employers whose employees work in only one foreign country (often called “cross-border situations”) should be smoother.
Here are a few examples where the new A1 certificate can be issued:
There appears to be a general lack of readiness among the authorities and institutions in the EU to apply the new option in respect of the A1 certificate and not much information is available. In some countries, there can be an issue of competencies, meaning that the institution(s) that issue the A1 certificates today are not competent to determine social security in this situation. This could explain a lack of readiness to use the new A1 certificate in these countries.
Another detail we do not have clarity on is how a case will be treated if a worker has an A1 certificate for main rule (cross-border) from one country and at the same time has an A1 certificate for posting or multi-state work from another country that appoints another country as the competent state. It is possible that this issue will not be relevant since the electronic exchange of information (EESSI) is to be implemented in 2019. EESSI should make the information of any issued A1 certificates available and thereby help prevent overlapping certificates.
1 Udbetaling Danmark is the competent institution responsible for the collection, disbursement, and control of a number of public benefits, as well as the issuance of certificates of coverage. Udbetaling Danmark is a public institution administered by the ATP Group. For more information, click here.
2 The A1 certificate is equivalent to a ”Certificate of Coverage” and proves the legal applicability of the social security legislation in the competent EU/EEA country or in Switzerland for mobile workers.
The information contained in this newsletter was submitted by the KPMG International member firm in Denmark.
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