Organizedflex: Outsource invoicing process (NL) to Organizedflex

How does outsourcing invoicing actually work?

When service providers (employers) post employees to another EU Member State, complex requirements are imposed on the financial and payroll administration by the tax authorities. To ensure this process runs smoothly according to the requirements of the tax authorities, Organizedflex has developed the DigitalOflex system. 

Weekly, the hours worked per service recipient (client), per employee, per project location are registered and approved in DigitalOflex. Purchase price and sales price are also registered in DigitalOflex, generating a purchase and sales process. 

As employees are seconded to the Netherlands, only payroll taxes are calculated and remitted to the Dutch tax authorities. Organizedflex then takes care of de-blocking the part that remained in the blocked account. 

Why outsource your invoicing?
Based on the data in DigitalOflex, a pro-forma invoice is generated per service recipient and per project location. Each pro-forma invoice lists the employees' hours worked including their ID/Passport no, due date and BSN number. This is how the tax authorities want the financial process to be substantiated for the Netherlands. 

Invoicing between Organizedflex and the service provider (Employer0 proceeds in the same manner. Again, pro-forma invoices are processed per service provider (Employer) and project location. 

The tax authorities then also look at how the hours worked according to registration have been processed in the payroll administration (CLA) for the Netherlands and how this has been taken over in the country where the employees are employed. 

Ultimately, the payroll administration becomes part of the financial administration. In the financial administration, the tax authorities again have other requirements such as a separation of posted turnover and local turnover.

It is important that prior to invoicing there is registration that meets the requirements of the tax authorities. 

Listed above are the most common reasons for outsourcing the invoicing process to Organizedflex. Many entrepreneurs do not have time to process the administration in the right way. This situation can cause unnecessary problems, putting a business in a bad situation. By using Organizedflex, the invoicing process is completed for you and you have less to worry about when it comes to inputting the administration. For now, the service provider (employer) remains ultimately responsible for the payroll and financial administration.

If you would like to be informed further please contact us.

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