The tax identification number, or NIF, is an indispensable element for any company. The cancellation of this number by the Tax Agency is one of the toughest decisions that can be taken against a company.
Article 147 of the General Regulations on tax management and inspection actions and procedures has been modified in certain aspects through the recent Royal Decree 249/2023, which was published in the BOE on April 5th. This change came into effect on April 25th.
Situations in which the Tax Agency may cancel the Tax ID number
– When the company fails to provide within the deadlines established by the Administration the necessary documents to be granted the definitive NIF, unless it somehow justifies its failure within the deadline.
– When an entity declares total bankruptcy (failed due to insolvency ) and is unable to pay its tax debts with the State Treasury.
– When for three consecutive periods a company has failed to file a corporate income tax return.
– In the event that, after at least three notification attempts over a period of more than one year, the taxpayer could not be notified at its tax domicile or if insolvency debts have been written off for three tax or liquidation periods.
– If the company claims the practice of non-existent activities in the declaration of registration or modification in the Census of Entrepreneurs, Professionals and Withholders.
– If a company is created by one or several founders and no economic activity is started nor the necessary preparations to start it are carried out within the three months following the application for the NIF.
– If notification is given of the performance of economic activities, administrative management or business management at an address that turns out to be false or apparent, and there is no justification that such activities or actions are carried out at a different address.
– Failure to notify the annual accounts to the Commercial Registry for four consecutive fiscal years.
Consequences of the cancellation of the NIF
– The company will not be certified of the tax obligations of which it is aware.
– It will cause the elimination from the registers of intra-community operators, from the territorial registers established by the regulations governing excise taxes, from the territorial register of the tax on fluorinated greenhouse gases, from the extractors of fiscal deposits of products included in the objective areas of the taxes on alcohol and derived beverages or on hydrocarbons, as well as from the monthly refund regime.
– It will not be possible to make entries in the registers when the registration sheet is closed in the Mercantile Register.
– The digital certificates of the company will be cancelled.
How the NIF can be recovered
The Tax Administration will have the option to reinstate the tax identification number through an agreement that must follow the same publicity requirements demanded for revocation. Requests for the reinstatement of the tax identification number will only be admitted when it is demonstrated that the causes that originated the revocation no longer exist and, in the case of companies, it is indicated who are the owners of the capital of the company, as well as information about the economic activity that is planned to be developed.
If the reason for the revocation is due to the failure to file the annual accounts for four consecutive fiscal years, the recovery of the NIF will only be allowed if it is verified that the obligation to file the annual accounts with the Commercial Registry has been complied with. If the request for tax rehabilitation is not answered within three months, the request will be deemed to have been rejected.
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