EFTA workshop on the COM proposal for a European services ... · 4. Tax formalities 5. Social...

Brussels, 22nd May 2017

EFTA workshop on the COM proposal for a

European services e-card

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2

1.2 Why a proposal on aEuropean Services e-Card?

a. Rationale behind the proposalb. Main features of the proposalc. Key benefits of an e-card

Robert Strauss, HoU DG GROW E1

a) Rationale behind the proposal (1/2)

Services Directive has unexploited

potential

In some important sectors, service providers still facesignificant obstacles when going cross-border

This is particularly the case for business services andconstruction

Opportunities for growth and jobs are not captured

Productivity growth of EU services sector lags behind otherregions in the world

Benefits of a better functioning internal market in services arewidely recognised (IMF, OECD, World Bank, etc.)

Important link between services and industry

1 Eurobarometer, "Internationalisation of SMEs", 2015

Internal market in services remainsunderdeveloped

Source: Eurostat

0% 20% 40% 60% 80% 100%

% intra-EU trade

% EU economyServices

Goods

Other

a) Rationale behind the proposal (2/2)

What type of administrative barriers do cross-border service providers face?

• Uncertainty about requirements and procedures

• Lack of cooperation between national authorities

• Lack of electronic procedures

• Complex and lengthy formalities

• Stringent document requirements, including costsof certification and translation

• Etc.

b) Main features of the e-card (1/4)

• Objectives: (1) offer administrative simplification andreduce uncertainty to service providers going cross-borderand (2) build up trust and offer more information tonational authorities

• A single common EU-level electronic procedure, available inelectronic platform connected to the Internal MarketInformation system (IMI)

• Offered to providers in business services and constructioncovered by the Services Directive

• Available to service providers previously established in aMember State on a voluntary basis

b) Main features of the proposal (2/4)

• Service providers interact with one single coordinatingauthority in the home Member State in the local language

• Exchange of information between home and host MemberStates, with clear roles, steps and timelines

• Clarity regarding list of requirements/data to submit, varyingper host Member State requirements and sectors concernedin accordance with legislation of home and host Member State

• Reliance on data instead of documents


• Two distinct procedural workflows:

1. Temporary cross-border provision of services –ensuring issue of e-card after 3 to 5 weeks

2. Secondary establishment (setting-up of abranch/agency/office) – ensuring issue of e-card after 7to 10 weeks

• Checks and balances:

o Home and host Member States can ask the serviceprovider questions/clarifications which suspendsdeadlines

o Suspension and revocation of the e-card is possible atany time (justified by issues such as bans on provisionof services, fake self-employment situations, etc)


• Secondment of staff formalities

o Declarations in advance regarding professional qualifications through thesame electronic platform connected to IMI;

o Link to national websites for declarations relating to posting of workers;

o Opt-in solution for Member States: declaration through the sameelectronic platform relating to the posting of workers.

• Easing cross-border access to insurance coverage:

o Information about insurance coverage in the e-card through aharmonised form;

o Requirement for insurance distributors to provide a harmonisedstatement of claims, which must be taken into account by insurers inhost Member States;

o Requirement for professional organisations to grant access to groupcover to cross-border providers in a non-discriminatory manner.

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c) Key benefits of the e-card

For service providers

More clarity and legal certaintyon applicable rules

Simpler controls/lessadministrative burdeno Roles and procedural steps

clearly set outo Fully electronic procedureso Data-based and multilingual

procedureso Centralisation of controls

and competent authorities

Support of home MS

Proof of legal establishment inhome MS

Information already containedin the e-card shall be reused

For Member States

Simpler controls/lessadministrative burden

More streamlined cooperation

Proof of legal establishment ofe-card holder in home MS -prevention of forum shoppingand shell companies

Far-reaching and centralisedsupervisory mechanism - fraudfighting

For users of services

Fostering servicerecipient/consumer confidenceo Proof of legal establishment

of e-card holder in home MSo Proof of ability to provide

services in host MS

More service providers activecross-border

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1.3 What will be the relation betweenthe e-card and

a. other EU (EEA) legislation and national law?b. EU (EEA) instruments (EPC, SDG)?

António de Sousa Maia, DG GROW E1

a. Procedures and formalities imposed on a provider wishing to expand operations cross-border

Service provider

E-card procedure

Administrative facility 1 –

professionalqualifications

Administrative facility 2 –posting of

workers (opt-in)

Service-specificprior authorisations and/or prior notificationschemes (in sectors covered)

1Other procedures and formalitiesnot covered by the e-card (when applicable)

2

Proof of legal establishment inhome MS and information in the e-card can be used in the context ofthese other (subsequent)procedures and formalities

1. Selection procedures (inc Pub Procur)

2. Site-specific controls

3. Company law formalities

4. Tax formalities

5. Social security and non-posting labourformalities

6. Movement of persons

7. Formalities applicable to all individuals

Recognition of professional qualifications(PQD) – potentially European Professional Card

replaced bythe uniformharmonisede-cardproceduresand relatedadministrativefacilities

(before service provision starts)Article 5e-cardDirective

Articles4 and 6e-cardDirective

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Relevant EU legislation Services mostconcerned

Requirements most concerned

Services Directive All servicescovered

Potentially allFor cross-border service provision only those requirements that comply with Article 16 of the Services Directive may be applied by the host Member State. For secondary establishment, Chapters III and V of the Services Directive are fully applicable.

Public Procurement Directives

All services covered

Good repute, economic/financial capacity, technical/professional capacity/security clearence (military) (mutual recognition – recital 1, Articles 62, 64 Classic, recital 4 Concessions, Articles 18,22, 42, 43, 44, 46 Military)

Energy Directives(RES, Energy Efficiency, EPBD)

Construction, Energy efficiency-related consulting services

All market access controls put in place, with the exceptionof PQD controls(mutual recognition – Article 14(3) RES, Article 16(3) EED)

Package Travel Directive Travel agencies Insolvency protection(mutual recognition – Article 18)

Accreditation Regulation Construction services Certifications based on mandatory technical standards, in particular ISO EN standards (mutual recognition – Article 11(2))

… … …

a. Current substantive EU law on entry barriers remains fully applicable under the issuance procedure

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a. Use of e-card in the context of other procedures andformalities (in host MS and in all other MS)

E-card as proof of legal

establishment in home MS

Information contained in the

e-card



4. Tax formalities

5. Social security and labour formalities

E-card replacesprocedural stepsrelated to legalestablishment(as defined in e-card legislation)in home MS



4. Tax formalities

5. Social security and labour formalities

6. Movement of persons

7. Formalities applicable to all individuals

Information ine-cardcan be used inthe contextof these otherprocedures andformalities

2. Site-specific controls

(possibly) Automatic fill-

in of information in

these e-procedures

Acceptance of e-card as source of

reliable information

in other MS

Recognition/Declaration of professional qualifications(PQD) – potentially European Professional Card

Recognition/Declaration ofprofessional qualifications (PQD) –potentially European ProfessionalCard

Article 4e-cardDirective

Article 6e-cardDirective

a. Validity of an e-card

Indefinite in time Nationwide

Case-by-case derogation

(temporary cross-border services)

Supervisory mechanismat all times

! !

Temporary cross-border provision

Secondary establishment

Authorisations can be justified for each

additional branch/agency/

office

!

Article 7 e-card Directive

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a. Sources of information for coordinating authorities

MS detects reason to trigger suspension/revocation

Coordinatingauthorities in

home and host MSCompetent

authorities in home and host

MS

E-cardholders

report eventsto issuingcoord auth(supervision events + mereupdates)

exchange information within same MS (supervision events + mereupdates)

Host MS introduces

case-by-case derogation

Alertmechanism

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Closed list of reasons includingnon compliance withconditions applicable totemporary cross-borderprovision/secondaryestablishment under nationallaw, in accordance with EU Law

Which events trigger revocation/suspensionof an e-card?

Events which impact the right of the e-card holder to continue to legally provide services

Service provider made use of fraudulent or falsified information in the context of theprocedure to issue an e-card

Service provider is a worker and not a self-employed person (decision host MS)

Service provider does not meet the specific host MS condition(s) the complianceof which is essential to continued legal provision of the services in the host MS(including permanent services under an e-card for temporary cross-border services)

Revocation

of an e-card in relation to host MS (Art. 15)

Revocation

of all e-cardsfor a certain

service activity(Art. 16)

Service provider permanently ceases to provide the services in question in the home MS

Service provider is wound up and dissolved

Service provider is a worker and not a self-employed person (decision home MS)

Service provider is no longer legally established in home MS for any other reason

Service provider changes main centre of activity to another MS or 3rd country

Service provider is subject to a penalty (or a case by case derogation in accordancewith the SD under an e-card for temporary cross-border services) oftemporary/permanent ban on service provision in the host MS

Service provider is subject to a penalty of temporary/permanent ban on service provisionin the home MS

Suspension or revocation

Suspension or revocation

a. Current EU law on supervision

applicable under the e-card mechanism

Relevant EU legislation

Services mostconcerned

Penalties for breach ofrequirements

Provisions on administrativecooperation

Services Directive All services covered (recital 43) Chapter VI

Public Procurement Directives

All services covered ----- Article 86 of the ClassicProcurement Directive

Energy Directives(RES, EnergyEfficiency, EPBD)

Construction, Energy efficiency-related consulting services

Article 13 EEDArticle 27 EPBD

Article 16(3) EED

Package TravelDirective

Travel agencies Article 25 Article 18 (insolvency protection)

Accounting Directive Accounting services Article 51 -----

… … … …

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b. The EPC and the e-card

ESTABLISHMENTRecognition of professional

qualifications for professionals required by the host MS of self-employed e-card holder and/or its staff?

TEMPORARY PROVISION Declaration in advance (Art. 7 PQD) required by the host MS

of self-employed e-cardholder and/or seconded staff?

No formalityrequired

NoNo

No formalityrequired

Regulated professions with public health and safety

implications without automatic recognition?

Yes

EPC already available?

Yes

Yes No

Not covered

No

EPC already available?

Reference to EPC providedDeclaration possible through electronic platform available

in IMI

Yes NoYes

b. The SDG and the e-card

SDG e-procedures

(areas listed in Annex I Reg.)

SDGInformation

(areas listed in Annex I Reg.)

SDG assistanceand problem

solving

Establishedat MS level

Establishedat EU level

Introducedby SDG

Regulation(Annex II)

Made availableunder other

EU law(e.g. PSC)

Made availableunder

other EU law(e.g. EPC, e-card)

Quality rules and governance model

+Links to national/EU

websites

Quality rules and governance model

+Links/service finder

to national/EU websites

Links to national/EU websites

SDG Exchange ofevidence tool

SD + PQD + PubProc

potentially

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Non-discriminatoryaccess, quality rulesand governancemodel

Thank you for your attention

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1.5 Practical examplesas to the issuing of an e-card

a. for temporary provision of servicesb. for secondary establishment

Frank Vandermeeren, DG GROW E1

a. for temporary provision of services

The service provider

A self-employed or a company Previously established in a (home) MS to provide construction services Secured 2 contracts to build a country house for and renovate the town house of a client in another

(host) MS Has never been active in that (host) MS Wants to make use in the host MS of construction workers it normally employs

The host Member State

Requires:o Proof of establishment in the home MS, technical capacity and insurance covero Supporting documents translated into a local language, certified by a locally qualified persono Payment of a feeo For each construction project (no sector-specific authority in host MS)o A prior notification of posted workers

PSC in the host MS includes limited information (in local language only) and no e-procedures

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Overview

Electronic platform connected to IMI

E-card procedure

Administrative facility –posting of workers

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Overview


E-card procedure


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First stage: application

Situation without an e-card

Service provider

National rules inhost MS arecomplex and onlyavailable in locallanguage

PSC gives limitedinformation, inlocal language only

In spite of legalobligations under SD

Legal advisor contacts host MS authorities to

understand and clarify requirements

Fills out paper application form in host MS language

Gathers supporting documents on insurance and

technical capacityIn spite of legal

obligations under SD

Up to several weeks/months

Service provider hires services of a legal advisor in host MS

Situation e-card

Few days

Service provider

Registers in the e-card platform in IMI(once in a lifetime)

Fills in multilingualelectronic form

Uploads multilingualinsurance certificate and(possibly) supportingdocument on technicalcapacity (descriptionmultilingual +automatically translated)

Second stage: evidence gathering

Service provider contacts several authorities in home

MS to obtain supporting documents proving legal

establishment (e.g. sector specific authorities if any plus business register authorities,

tax authorities)

Situation e-card

Up to several weeks

1 week

CC

Service provider

Services provider hires services of a translator in

host MS

Certification of translation by locally qualified person

Submission of supporting documents (plus application

form) in paper form to authorities in the host MS

In spite of legal obligations under SD

Home MS coordinating authority receives

application (and supporting documents)

Asks service provider to supplement application (if

needed)

Home MS coordinating authority contacts competent

authorities and accesses national databases to check information regarding legal

establishment and other aspects relevant under home

MS law and cross-border databases such as BRIS

Submission of application (electronically) by home MS coordinating authority to the

host MS coordinating authority


Deadline suspended for supplementing application

Third stage: checks by host MS

Host MS

Host Member authorities have questions on the

information received and want

to do further checks

Contact relevant competent authorities in the home MS for

further information via IMI(often difficult to find which home MS authority is the right contact)

Use databases available cross-

border to do checks, such as

BRIS and insolvency registers

Ask the service provider directly for further information

(language/translation issues)

Situation e-card

C

Can take several weeks, depending on number of issues to clarify

Host MS receives clarifications from various sources

Host MS

Host Member coordinating authority has

questions on the information received and wants to do

further checks

Uses databases available cross-


insolvency registers

C Asks the coordinating authority in the home MS and the service provider for

further information (multilingual structured issues + automatic

translation)(home MS authorities and service

provider work together)

Host MS receives clarifications in a coordinated way

C

2+2 weeks 2+2 weeks (cont.)Deadline suspended


Fourth stage: decision making

Host MS

Host MS authorities take decision on application by

service provider (often notified in paper form)

Host Member decides not to object and should list exercise requirements or remains silent

Host MS

C

Situation e-card

Home MS issues the e-card (electronically)

2+2 weeks (cont.)

No official deadline - can take a long time, depending on number

of issues to clarify/consider

Without delay or automaticallyafter 2+2 weeks


Overview


E-card procedure


Administrative facilities – posting of workers

Service provider taking

workers cross-border

Electronic submission of the declarations to authority in the host

MS

Fills out electronic multilingual declaration form (for all

workers)

Fills out electronic declaration forms in host MS language (separate for each worker)

Electronic submission of the declaration

form to the competent authority and the coordinating authority in the host

MS

C



Situation if host Member State does not "opt in"

Situation e-card if host MS "opts in"

b. for secondary establishment

The service provider

A company Previously established in a (home) MS to provide accounting services Wants to set up a branch in another (host) MS Has never been active in that (host) MS Wants to make temporary use at the branch of accountants it normally employs in the home MS

(intra-corporate transfer)

The host Member State

Requires:o Proof of establishment in the home MS, insurance cover and 1 manager qualified as per host

MS rules (in order for branch to register as a member of a sector-specific authority – aprofessional chamber)

o Supporting documents certified /authenticatedo Supporting documents translated into a local language, certifiedo Professional qualifications of accountantso A prior notification of posted workers

PSC in host MS includes limited information (although also in English) and no e-procedures

Overview


E-card procedure

Administrative facility 1 –professional qualifications

Administrative facility 2 –posting of workers

First stage: application

Service provider

Legal advisor contacts host MS

authority to understand and

clarify requirements

Up to several weeks/months

Service provider hires services of a

legal advisor in host MS

Situation e-card

Few days

Service provider

Register in the e-cardplatform in IMI (oncein a lifetime)

Fills in multilingualelectronic form

Uploadsmultilingualinsurancecertificate

Fills out paper application form

in host MS language

Gathers supporting

documents on insurance

In spite of legal obligations under

SD

Service provideradapts in home MSto comply withmanagementrequirement ofhost MS


National rules inhost MS arecomplex andonly available inlocal language

PSC giveslimitedinformation

In spite of legalobligations underSD

Second stage: evidence gathering

Situation e-card

Up to several weeks

1 week

CC

Service provider

Services provider requests certification/

authentication of documents by official

or notary

Submission of supporting

documents (plus application form) in

paper form to authority in the host

MS

In spite of legal obligations under SD

Home MS coordinating authority receives

application (and supporting documents)

Asks service provider to supplement application (if

needed)

Home MS coordinating authority contacts competent

authorities and accesses databases to check

information regarding legal establishment and other

aspects verifiable/relevant under home MS law and

cross-border databases such as BRIS

Submission of application (electronically) by home MS coordinating authority to the

host MS coordinating authority

Services provider hires services of a

translator

Certification of translation

Service provider contacts several authorities in home

MS to obtain supporting documents proving legal

establishment and management situation (sector specific authority if any plus business register authorities,

tax authorities)


Deadline suspended for supplementing application

Third stage: checks by host MS

Host MS

Host Member authority has


further checks

Contacts relevant competent authorities in the home MS for

further information via IMI(often difficult to find which home MS authority is the right contact)



BRIS and insolvency registers

Asks the service provider directly for further information

(language/translation issues)

Situation e-card

C

Can take several weeks, depending on number of issues to clarify

Host MS receives clarifications from various sources

Host MS

Host Member coordinating authority has


further checks



insolvency registers

C Asks the coordinating authority in the home MS and the service provider for

further information (multilingual structured issues + automatic

translation)(home MS authorities and service

provider work together)

Host MS receives clarifications in a coordinated way

C

4+2 weeks 4+2 weeks (cont.)Deadline suspended


Fourth stage: decision making

Host MS

Host MS authority takes decision on application by

service provider (often notified in paper form)

Host MS

C

Situation e-card

Host Member asks for

compliance with requirement

(case-by-case decision) linked to management

concerns

4+2 weeks(cont.)

Several weeks

C

Host MS asks the coordinating authority in

the home MS and the service provider for further information (multilingual

structured issues + automatic translation)

Deadline suspended

Service providerproposes alternativeroute for compliancethrough mutualrecognition andprovides evidence

Host MS authority

registers (pro forma)

e-card holder as member of professional

chamber

Withoutdelay

Host MS authority registers company as member of professional chamber

Host MS issues the e-card or, if

host MS remains silent, e-card is issued automatically

(electronically)

1 week


Overview


E-card procedure



37

Administrative facilities – professional qualifications

Situation e-cardC



Submission of the declarations and

supporting documents in paper form to authority in

the host MS

Fills out electronic multilingual declaration form (for all workers)

Gathers and uploads supporting documents

(description multilingual + automatically translated)

Services provider hires services of a

translator

In spite of legal obligation under

SD/PQD, still may need to fill out paper declaration

forms in host MS language (separate for each worker)

Gathers supporting documents


form and supporting documents to the

competent authority and the coordinating authority in the host

MSService provider taking



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Overview


E-card procedure



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Administrative facilities – posting of workers

Situation if host Member State does not "opt in"

Situation e-card if host MS "opts in"



Electronic submission of the declarations to authority in the host

MS

Fills out electronic multilingual declaration form (for all

workers)

Fills out electronic declaration forms in host MS language

(potentially separate for each worker)




form to the competent authority and the coordinating authority in the host

MS

C

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Thank you for your attention

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EFTA workshop on the COM proposal for a European services ... · 4. Tax formalities 5. Social...

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