What is G account (G-rekening)?
A G account (G-rekening) is a blocked bank account of a subcontractor or staffing agency, into which part of the invoice amount is paid for the payroll tax and VAT on the work. As main contractor or hirer you limit your liability if those taxes go unpaid.
Also known as: blocked account, G share, G account deposit
The background is chain liability and hirer liability (ketenaansprakelijkheid and inlenersaansprakelijkheid). If a subcontractor or lender of staff does not pay its payroll tax or VAT, the Dutch tax authority can, under conditions, hold the main contractor or hirer liable. These rules are often referred to together as the Wet Ketenaansprakelijkheid. A deposit into the G account is one of the ways to limit that risk.
The G stands for geblokkeerd, blocked. The supplier cannot use the money in the account freely: it is meant for paying taxes to the tax authority or for passing on to the G account of its own subcontractor.
How much goes to the G account is agreed with the supplier. Many suppliers print it on the invoice, as a percentage or as an amount, for example under a heading such as maximale storting G-rekening. The rest of the amount goes to their normal account.
In Exact Online
Exact Online recognises a G account by its account number: the account number part starts with 099. When the supplier record holds such an account, the purchase entry has a G account share. Glimps reads the G amount or G percentage printed on the invoice and posts it as the G account share of the purchase entry in Exact Online, but only when the supplier has a G account in Exact Online. If the invoice names a G account but Exact Online has none, Glimps follows Exact Online and posts without the split. Glimps never guesses the split from earlier invoices.
Who deals with it
Mostly construction and technical services, and anyone who hires in staff. The G account belongs to the supplier, splitting the payment is your job.
- Main contractors who subcontract work.
- Companies that hire in staff from a staffing agency or other lender.
- Subcontractors and staffing agencies themselves, as receivers of the G share.
Why the split has to be right per invoice
If the whole amount goes to the normal account, you do not have the protection you thought you had. If too much goes to the G account, the supplier is left with money it cannot use freely, and you will hear about it soon. That is why the G share should come from the invoice itself, not from an average of previous months.
Where it usually goes wrong
- 1Estimating the G share from previous invoices instead of reading it off the invoice. Each invoice can name a different amount.
- 2Not recording the G account on the supplier in Exact Online. The split then has nowhere to go.
- 3Looking only at the total in the payment run. The total is right, but the split across the two accounts may not be.
Frequently asked questions
Common questions about G account (G-rekening).
Questions about your situation?
Open the demoIt is a way to limit your liability, not a goal in itself. Whether it is needed or wise in your situation, and which other measures exist, is best discussed with your accountant or tax adviser.
By the account number. If the account number part starts with 099, Exact Online treats it as a G account. Record it on the supplier, otherwise Exact Online does not know a split is needed.
Glimps reads the G amount or G percentage off the invoice and posts it as the G account share of the purchase entry in Exact Online, when the supplier has a G account there. If it has none in Exact Online, Glimps posts without the split. Glimps never guesses a split based on earlier invoices.
That depends on the work and on the agreement with your supplier. Many suppliers print the amount or percentage on the invoice. For the rules that apply in your situation, the tax authority and your adviser are the right source.