Absence of A1 form can lead to high penalisation

Businesses should not forget about the A1 form when travelling within the EU. The document proves that a person is provided with social insurance in his/her home country. Some EU Member States strictly check that EU citizens on a business trip on their territory have a valid A1 form, the absence of which can lead to significant penalties or removal of the right to attend events such as fairs or exhibitions.

Czech businesses usually experience this kind of approach in neighbouring countries such as Germany or Austria, but similar controls are also reported by companies from other EU countries when their employees visit other Member States. This issue is starting to affect the whole of Europe, creating more obstacles in the internal market. Indeed, in case of short visits or events, it represents unmanageable bureaucracy. Penalties for not complying with the rules can differ from country to country. In France it can mean a fine of EUR 3,269; in Austria penalties start at EUR 1,000 and may be as high as EUR 10,000. Current EU social security coordination rules say that the A1 form is needed during business trips within the EU.

The inconvenience comes with short business trips or the attendance of exhibitions, fairs or workshops, which usually do not last longer than one day. Despite the fact that the rules are the same for all Member States, the controls vary from State to State. But, if a company gets a call from a foreign business partner inviting him/her for a meeting, there is a little chance that the A1 form will be issued within one day. The European Association of Chambers of Commerce EUROCHAMBRES, of which the Czech Chamber of Commerce is a member, called on the Commissioner Thyssen to deal with this issue, so that the form should not be required during short business trips and that high penalties should not be imposed. But this issue is not the only one that businesses face on the internal market. The differences in the implementation of EU rules and the “gold-plating” complicate the life of EU businesses. Czech businesses are calling on the new EU institutions to take the issue of the barriers in the internal market seriously. Favourable conditions for business can help to create jobs and growth.