Subcontractor documents in Germany: what clients expect

The short answer

Anyone who wants to work as a subcontractor in shopfitting for manufacturers, general contractors or installation companies in Germany is almost always asked for the same documents: business registration, public liability insurance, the Freistellungsbescheinigung under § 48b EStG (an exemption certificate from the German tax office that stops the client withholding construction tax from your invoices), Unbedenklichkeitsbescheinigungen (clearance certificates confirming you have no arrears) from the tax office, the health insurance fund and the Berufsgenossenschaft (the statutory accident insurance body), and for assignments in other EU countries additionally the A1-Bescheinigung (the A1 certificate showing in which country a person is covered by social insurance). The reason is not bureaucratic harassment: the client is jointly liable if taxes or social security contributions are not paid. Anyone who has these documents complete and valid to hand often wins orders for that reason alone — because many others do not.

This article offers guidance from installation practice. It is not legal or tax advice. For your own situation, your tax adviser or the chamber of trades is the right contact.

Why clients want to see so much paperwork

It is not about distrust. It is about liability.

Anyone who engages a subcontractor can be held liable for that subcontractor's unpaid taxes and social security contributions. This applies to the construction withholding tax (Bauabzugsteuer), and in the construction sector it also applies to social insurance contributions and the minimum wage. A client who does not collect the documents is putting their own money at risk.

For you, this means: the document folder is not red tape, it is part of your offer. Two firms can install equally well — the order goes to the one whose paperwork arrives complete in the inbox on a Friday afternoon.

The basics

Business registration (Gewerbeanmeldung) or commercial register extract (Handelsregisterauszug). The proof that the business exists. For craft trades, also the Handwerkskarte (craft trade card) or the entry in the Handwerksrolle (register of craft trades).

Public liability insurance (Betriebshaftpflichtversicherung). The client wants to see the current policy or a confirmation of cover, with sums insured and term. Sums insured in the single-digit millions for personal injury and property damage are usual. What matters is that the activity you actually carry out is actually insured — installation work on third-party property, damage caused during processing, damage caused during work. A policy that only covers the office is no help on site.

Proof of registered employees. Anyone who comes with staff must show that they are registered. Social insurance registration certificates, proof of membership of the Berufsgenossenschaft.

Exemption certificate under § 48b EStG

This is the point where your own money is at stake — and the one most often misunderstood.

For construction services, the client must withhold 15 percent of the invoice amount and pay it to the tax office. That is the construction withholding tax. It is not a penalty and it is not lost — it is later credited against your tax liability. But it is missing from your account to begin with, and that on every invoice.

If you present a valid exemption certificate, the deduction does not apply. You receive the full amount.

What you should know:

You apply for the certificate informally at your own tax office — in writing, by phone or via ELSTER (the German online tax portal). It costs nothing.
It is issued if your tax obligations are met. Anyone who lets returns or advance returns slide will not get it.
It is valid for a maximum of three years. On the first application, often only one year.
Processing takes time. Allow several weeks and renew in good time, not on the last day.
The client can check its authenticity online at the Federal Central Tax Office (Bundeszentralamt für Steuern, EIBE portal). An expired certificate is spotted immediately.
There is a de minimis threshold of 5,000 euros per client and calendar year. Do not rely on it: anyone who works regularly for the same client is quickly above it.
Everyone in the chain needs their own. The main contractor's certificate does not protect you.

In short: apply for it, even if you think you do not need it. It costs nothing and prevents 15 percent of your turnover sitting at the tax office for months.

An honest note: whether a shopfitting installation counts as a "construction service" (Bauleistung) for tax purposes depends on the individual case — a permanently built-in element is something different from a free-standing piece of furniture. Only your tax adviser can answer this distinction for you. In practice, most clients ask for the certificate anyway.

Clearance certificates

They prove that you have no arrears. As a rule, the following are required:

Tax office (Finanzamt) — tax clearance certificate
Health insurance funds (Krankenkassen) — for every fund with which you have employees insured
Berufsgenossenschaft — BG Bau or BG Holz und Metall, depending on the business
Depending on the client: social fund (SOKA-Bau), if you fall under the construction collective agreement

These certificates are required to be recent. A document from a year ago is usually not accepted; three to six months is usual.

For assignments in other EU countries: the A1 certificate

Anyone who travels to another EU country for an assignment needs an A1 certificate for every person travelling. It proves in which country the person is covered by social insurance. During an inspection on site, it must be available — not in the office, but on the spot.

Details in the dedicated article: The A1 certificate in practice.

Where most people fail: expiry dates

Obtaining the documents is not the problem. Keeping them current is.

The exemption certificate expires after a maximum of three years. Clearance certificates are too old after a few months. The liability insurance is renewed annually. And the request never comes when everything is fresh — it comes on Thursday, for Monday.

Anyone who then needs three days to obtain paperwork does not get the order. It goes to the firm that sends it straight away.

What helps is simple and it works: a folder — digital, a directory is enough. Every document with its expiry date in the file name. A calendar reminder six weeks before expiry. Nothing more is needed. Ten minutes of effort per quarter, and you are the firm that can deliver when it has to be quick.

Scheinselbständigkeit: what you should keep in mind

Scheinselbständigkeit (false self-employment) is a topic that concerns both sides — and one where both sides have an interest in clear arrangements.

It becomes critical if you in fact work like employees: only one client, fixed working hours, instructions as given to employees, no tools of your own, no entrepreneurial risk of your own. An audit may then conclude that there was no subcontracting relationship at all — with back payments for both sides.

What speaks against this: several clients, your own tools and vehicle, your own costing, your own employees, billing by work or order rather than by attendance. Anyone who is unsure can initiate a status determination procedure (Statusfeststellungsverfahren) with the Deutsche Rentenversicherung (the German pension insurance). Here too: that is a matter for the tax adviser or the chamber, not for a blog article.

Checklist: what belongs in your folder

Business registration / commercial register extract
Craft trade card or entry in the register of craft trades, if applicable
Public liability insurance: current policy with sums insured and term
Exemption certificate under § 48b EStG, valid
Clearance certificate from the tax office
Clearance certificate from the health insurance fund(s)
Clearance certificate from the Berufsgenossenschaft
Proof of SOKA-Bau, if applicable
Social insurance registration certificates for employees
A1 certificates for assignments abroad, per person
Current bank details and tax number / VAT ID

How Emig works with installation partners

We ask for these documents, and we check them before the assignment. Not out of distrust — but because we answer for them to our clients.

In practice, this means: we keep track of the expiry dates, and we get in touch before something expires. Whoever is complete is asked first when an order comes in. That is not a rule we made up — it is simply the order in which you reach for the phone when a team is needed at short notice.

FAQ

Do I need an exemption certificate as an installation subcontractor?

If you provide construction services for businesses, yes — otherwise the client must withhold 15 percent of the invoice amount and pay it to the tax office. The certificate is applied for informally at your own tax office, costs nothing and is valid for a maximum of three years. Whether a specific installation counts as a construction service for tax purposes is for the tax adviser to clarify.

How long are the certificates valid?

The exemption certificate under § 48b EStG is valid for at most three years, on the first application often only one year. Clearance certificates are in practice only accepted if they are a few months old. The public liability insurance is renewed annually.

What applies if I am a sole trader without employees?

The basic requirements remain: business registration, public liability insurance, exemption certificate, clearance certificate from the tax office. The proofs relating to employees do not apply. Also pay attention to the topic of false self-employment — several clients and your own tools are important criteria here.

What do I need for installation assignments in other EU countries?

In addition to the German documents, an A1 certificate for every person who travels. It must be available during an inspection on site. Depending on the country, further notification obligations apply.

More about our installation services: roll-out installation.

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