Skip to content

What is a G account?

What is a G account?

A G account is sometimes a request your client could ask you, What is a G account?

Social premiums

If you are an entrepreneur and you have made available employees for this client, then you are due social premiums for these employees. Some clients are aware that they can be held liable for these social premiums, should you not have paid them to the tax office for some reason.

This liability can be such an enormous amount, that some clients would like to be free guarded from being requested at a certain moment in the future for social premiums that were never paid by a subcontractor.G account

Value Added Tax

If you are an entrepreneur and you have a client that would like to be certain you pay the VAT, that is mentioned on your invoice to this client, to the tax office. This client can demand that you use a G account. A percentage of the invoice is paid into this G account and the balance of the invoice is paid into your company’s account.

G account

The G account can be a bank account that is created by the bank, you and the tax office. A tree party event. Deposits made on this bank account you can use to make tax payments. For instance your wage tax or value added tax return. If too much is paid into that bank account, you cannot simply transfer this amount to your bank account. You need to ask permission from the tax office and the tax office will instruct the bank.

Wka account

The above mentioned G account can be as smooth as pulling teeth. The bank has demands under which circumstances they would like to open this account, the bank  charges bank charges and the formalities are a hassle.

The same or even a better result can be achieved by setting up a Wka account. This is not a bank account, but an account you can open with the Tax Office. For the client, who makes the payment to the tax office, it is more clear that the money is actually being paid into the bank account of the tax office.

The tax office provides you with good overviews what has been received. You can instruct the tax office which tax can be paid with the balance on that Wka account.

Tax audit

If you would like to take out the too much paid amount in your G account or Wka account, then the tax office will first do an audit on your payroll / VAT administration. This is done to confirm that the tax office is not paying you a refund, whereas you should have paid more tax/social premiums to them in the first place.

After the initial audit additional future requests to take out a balance is done without an audit.

Orange Tax Services

We are able to assist you opening a Wka bank account, process the payroll for you and or file the value added tax return. Should you have done this already, but you are in a situation you would like to cash the excess in the account and for some reason you cannot, we can assist as well. Feel free to contact us.

Does this post make you want to get in touch? Go for it!

Related

New company and fraudulent invoices

Tax is exciting BV is a new company and fraudulent invoices is what we receive on a daily basis. That is not exciting. As we are already in business for...

Dividend is much better than salary, or is it?

Dividend is much better than salary is the starting point of nearly all entrepreneurs that contact us. We have a day job explaining that we have rules in the Netherland...