Although at first sight it may seem to be an abstract action that rarely happens, it is more common than we think that the Spanish Tax Agency may revoke the NIF or Tax Identification Number of a company and it can happen for several reasons.
Some of the most common reasons may be that a provisional tax identification number has been assigned to an entity, but the necessary documentation to obtain a definitive tax identification number is not provided within the established period, or that the entity has tax debts with the Spanish Tax Agency. Also included in the grounds for revocation are the failure to file tax obligations such as the corporate income tax for three consecutive periods or the annual accounts for four consecutive periods, all these non-compliance actions could lead to the revocation of a company’s tax identification number.
It is true that, the most frequent is the revocation of NIF to those companies that are inactive and sometimes even those that have a reduced turnover. This activity of the Tax Agency entails that the administrators of these companies are unable to carry out operations with the Public Administrations and that the registration page of the Mercantile Registry is closed.
In addition to the aforementioned consequences, the entity will not be able to make debits and credits to the accounts opened in credit institutions and will not be able to obtain tax certificates.
What should I do if this happens?
It is important to bear in mind that the agreement to revoke the NIF will require the prior hearing of the taxpayer for a period of 10 days, counted from the day following the notification of the opening of said period. The revocation will be published in the Official State Gazette and the taxpayer will be notified, following a publication schedule on Mondays, Wednesdays and Fridays of each week.
On the Tax Agency’s web page, in the Electronic Headquarters, it is possible to consult whether a specific NIF is revoked or not, as well as the date of publication in the BOE of this revocation.
Fortunately, the revocation of the NIF does not have to be irreversible and the Tax Agency can reactivate it as long as the circumstances that motivated them to take this action have ceased. To do so, they must expressly prove that the causes that motivated the revocation have ceased and provide the required documentation.
Mainly, when a NIF has been revoked and the entity needs its activation it can be for two basic points: either for the entity to be liquidated or for the entity to continue with its activity. In both cases, there is a common documentation and other complementary documentation depending on the purpose.
Whichever option it is, it is obligatory to provide proof of filing of the Corporate Taxes, of course, of the fiscal years not prescribed at the date of notification, as well as the accreditation of not having outstanding debts with the Spanish Tax Agency, since the NIF is inactive and it is not possible to obtain the tax certificates, it must be studied if the entity is registered as a Failed Debtor in the Collection unit.
However, this documentation in itself is not enough to reactivate the NIF, but it will have to be accompanied by complementary and different documentation, if the purpose of the reactivation is to liquidate the company or to continue with our activity.
Consequently, from all the above mentioned, the revocation of a NIF should be understood more than as a sanction as an administrative act of control in which legal entities that do not comply with their tax obligations or that have moved away from their activity.
For further information, please do not hesitate to contact our MDG Team.
Carmen Moya López.