What circumstances lead to the revocation of the NIF (TIN), consequences and how to amend the revocation
As a general rule, anyone who is going to carry out transactions with tax implications must have a NIF (TIN/Tax Identification Number), except for certain exceptions provided for in Royal Decree 1065/2007. This can be obtained either at the request of the interested party, by filing the corresponding census declaration of registration in the Census of Taxpayers or assigned ex officio by the Tax Administration.
However, there may be certain situations in which the Tax Administration will not hesitate to revoke the NIF ex officio, leaving taxpayers totally inoperative. Situations which, given the effects they have, especially for companies and professionals, should be avoided at all costs.
In which cases can the Tax Agency revoke the NIF (TIN)?
There are different situations in which the Treasury may revoke the NIF assigned to taxpayers, which are set out in Royal Decree 1065/2007, including the following:
- When an entity is declared bankrupt because it is totally insolvent with respect to its debts to the AEAT.
- When an entity has not filed corporate income tax self-assessments for 3 consecutive tax periods.
- When for a period of more than 1 year and after having made at least 3 notification attempts, it has been impossible for the AEAT to notify the taxpayer at his or her tax domicile.
- That the AEAT has been notified, by means of the census declarations of registration or modification in the Census of Entrepreneurs, Professionals and Withholders, of the development of non-existent economic activities.
- The company has been set up by one or more partners without having started the economic activity or the preparatory acts for the effective exercise of the same within a period of 3 months from the application for the NIF (TIN), unless the impossibility of carrying out such acts within the aforementioned period can be accredited.
- When the development of economic activities, administrative management or the management of the taxpayer’s business at an apparent or false address is reported, without the taxpayer having been able to justify the carrying out of such activities at a different address.
- When the obligation to deposit the annual accounts with the Commercial Registry for 4 consecutive financial years is not complied with.
How does the revocation of the NIF (TIN) affect taxpayers?
First of all, it should be noted that the AEAT cannot revoke a taxpayer’s NIF (TIN) automatically, but must first have notified the taxpayer of the reasons for the revocation and must have given him/her a period of 10 working days to argue against the revocation (unless the revocation agreement is included in the proposed resolution issued in a census rectification procedure).
However, with regard to the consequences of the dreaded revocation of the NIF (TIN), once it has been published in the BOE and notified to the taxpayer, they can be briefly summarised as follows:
- It determines deregistration from the Register of Intra-Community Operators (ROI) and the Monthly Return Register (REDEME), among others.
- It prevents the taxpayer from making entries in the relevant public register.
- It makes it impossible to debit or credit bank accounts or deposits opened with the various credit institutions.
- It makes it impossible to issue the taxpayer with a certificate of being up to date with his tax obligations.
Can the NIF be rehabilitated and how can this be done?
Of course. The revocation of the NIF (TIN) is not irreversible. However, in order for it to be revoked, the reasons for the revocation must have disappeared.
In addition, it is the taxpayer who must apply to the Tax Administration for the NIF (TIN) to be reinstated, providing all the documentation that proves that it will continue to carry out a real and lawful economic activity, that it has a real corporate purpose and that its tax domicile corresponds to the place where its administrative management and the management of its business is effectively centralised.
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