When passing on orders in the area of construction services within the meaning of § 19 (1a) UStG, the client is liable for all social security contributions and apportionments of the commissioned company up to a maximum of 20% of the wages paid.
Likewise, the contracting company shall be liable for the wage-related taxes to be levied by the tax office, which the contracted company must pay, up to a maximum of 5% of the wages paid for the work.
The liability also includes tax or contribution debts that are not related to the specific or placed order.
Client liability - HFU List
The principal’s liability for the client does not apply if the commissioned company is included in the overall list of companies exempt from liability (HFU overall list) at the time of performance of the work wage. If this is not the case, the client’s liability can also be avoided if the client does not transfer 25% of the remuneration for the work to be performed to the contractor, but to the service center of the WGKK.