With the entry into force in April of Royal Decree 249/2023, the Tax Agency may revoke the tax identification number (VAT. Num. or NIF) when it accredits any of the following circumstances:

  • When the persons or entities to whom a provisional tax identification number has been assigned do not provide, within the legally established period or, within the period granted in the request made by the Administration, the documentation necessary to obtain the definitive tax identification number
  • When the entity is declared bankrupt due to total insolvency of the entity in respect of tax debts owed to the tax authorities
  • Where the entity has failed to file a corporate income tax return for three consecutive tax periods
  • When for a period of more than one year and after at least three attempts at notification, it has proved impossible to notify the taxpayer at the tax address or when debts have been written off due to insolvency for three tax or assessment periods
  • When in the declaration of registration or modification in the Census of Entrepreneurs, Professionals and Withholders, the development of non-existent economic activities has been reported
  • Where the company has been set up by one or more founders without the commencement of economic activity or preparatory acts for the effective exercise of economic activity within three months of the application for the tax identification number
  • When it is established that the same capital has been used to set up a number of companies, so that, from an overall consideration of all of them, it can be deduced that the minimum payment required by the applicable regulations has not been made
  • Where the performance of economic activities, administrative management or the conduct of business is communicated at a false address
  • When the obligation to deposit the annual accounts with the Commercial Registry is found to have been breached for four consecutive financial years.

Effects of revocation

The revocation of the tax identification number has, among others, the following consequences:

  • Certificates of good standing will not be issued
  • It shall determine the removal from the registers of intra-Community operators, the territorial excise registers, the territorial registers of the tax on fluorinated greenhouse gases, of extractors of tax warehouses of products included in the objective areas of the taxes on alcohol and derived beverages or on mineral oils
  • The closing of the company’s registration sheet in the Commercial Register will be carried out
  • The company’s digital certificates shall be revoked.

Reinstatement will be carried out when it is accredited that the causes that led to the revocation have disappeared. In addition, the ownership of the company’s capital, identification of its legal representatives, tax domicile, as well as documentation accrediting its economic activity must be specified.

Jessica Ushca

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