What is a
tax certificate
Also known as: tax clearance certificate
A tax certificate is an official document issued by a tax authority confirming that a business or individual has no outstanding tax liabilities. In public procurement, tax certificates serve as proof that a supplier is in good financial standing — a fundamental requirement for participating in tender procedures across the EU and EEA.
How does a tax certificate work?
Under EU Directive 2014/24/EU, failure to pay taxes is both a mandatory and discretionary ground for excluding a supplier from procurement procedures (Article 57). When the breach has been established by a final judicial or administrative decision, exclusion is mandatory. Contracting authorities may also exclude suppliers where non-payment can be demonstrated by other means.
The ESPD (European Single Procurement Document) serves as a preliminary self-declaration, where suppliers confirm they have no outstanding tax obligations. However, contracting authorities can require an actual tax certificate as supporting documentation before awarding a contract. The principle of proportionality applies — minor unpaid amounts should not automatically trigger exclusion.
Tax certificates in practice
Requirements for tax certificates vary across EU/EEA member states, but the underlying principle is the same: suppliers must demonstrate compliance with their tax obligations. In Norway, for example, the procurement regulation requires a tax certificate (skatteattest) for all procurements above NOK 500,000, and the digital service eBevis allows contracting authorities to verify tax status directly from official registers in real time.
The EU's self-cleaning mechanism (Article 57(6)) allows suppliers who have had tax compliance issues to rehabilitate themselves by paying outstanding debts and demonstrating corrective measures. Tools like Cobrief can help suppliers stay informed about which documentation requirements apply in specific tender competitions.
Tax certificates play a vital role in maintaining fair competition in public procurement. They ensure that all suppliers compete on equal terms and prevent those evading tax obligations from gaining an unfair advantage in the market.