The revocation of the Tax Identification Number (NIF, Número de Identificación Fiscal in spanish) poses a problem for any company’s operations.
This situation creates multiple tax and legal implications, limiting the ability to engage in economic activities and maintain normal business relationships.
Fortunately, there is a legal procedure that allows you to reinstate a revoked NIF, provided that certain specific requirements set out by the current regulations are met.
In this article, we detail what this revocation entails, the associated consequences, key steps, and the necessary documentation to reinstate a company’s NIF.
What does it mean to have a revoked NIF?
The Tax Identification Number (NIF) is a unique identifier for a legal entity before the Spanish Tax Administration.. Its function is to facilitate the control and management of taxpayers’ tax obligations.
Revocation of the NIF may occur for various reasons. Some of the most common include failure to file mandatory tax returns, prolonged company inactivity, or failure to report significant changes affecting the entity.
Prior to revocation, the Tax Administration usually grants the taxpayer a prior hearing. During this stage, the reasons for the revocation are explained, and the opportunity is given to submit claims or evidence that may justify the continuation of the NIF.
The regulations applicable to the revocation and reinstatement of the NIF are set out in Royal Decree 249/2023, of April 4th. This decree establishes the specific procedures and requirements that must be met for the NIF reinstatement, as well as the time frames and conditions that apply.
Consequences of NIF revocation
From a tax perspective, the company is prevented from conducting transactions with the Tax Agency, which can affect filing tax returns and fulfilling tax obligations. Legally, the company loses its ability to carry out economic activity and to contract with third parties, which may generate legal and commercial problems.
A company with a revoked NIF cannot continue to engage in economic activity. This includes being unable to invoice, issue receipts, or carry out any commercial transaction. Revocation also affects relationships with suppliers and clients, as the company cannot sign contracts or perform commercial operations.
Revoking the NIF also leads to the company’s registry closure. This means the company becomes inactive in the Commercial Registry and cannot perform any official activity. Inactive companies face additional difficulties, such as the loss of tax identification and inability to access benefits and subsidies.
Get in touch
Need help
Procedure to reinstate a revoked NIF
To reinstate a company’s revoked NIF, you need to submit the required documentation to the Tax Administration, prove the causes for revocation have disappeared, and adhere to the usual time frames for the reinstatement process.
Initial steps to start the process
The first step is to submit a formal application to the Tax Agency. This application should include a clear description of why the NIF is eligible for reinstatement. It is advisable to submit a detailed justification demonstrating the disappearance of the reasons that led to revocation.
Required documentation for the Tax Administration
The required documentation includes:
- Formal request for NIF reinstatement.
- Proof of payment and settlement of all outstanding tax debts.
- Proof of economic activity and tax compliance.
- Documents evidencing the non-existence of the reasons that led to revocation.
How to prove the disappearance of the causes for revocation
To prove the disappearance of the causes behind the NIF revocation, you must submit documentation justifying compliance with tax obligations and the cessation of activities that triggered the revocation.
This might include:
- Certificates proving taxes are up to date.
- Proof of regularized accounting status.
- Reports certifying company restructuring, if applicable.
Typical time frames for the reinstatement process
The NIF reinstatement process may vary in duration, but it is generally estimated that it can take between 3 and 6 months. During this period, the Tax Administration will review the submitted documentation and assess whether the original causes for revocation have disappeared. The presentation of additional documentation or hearings to clarify specific points may be required.
Digital certificate and NIF reinstatement
Once the NIF reinstatement process is completed, you must request a new digital certificate. This certificate is necessary to carry out online procedures with the Tax Administration and other public agencies.
Requesting a new digital certificate after reinstatement
To obtain a new digital certificate, you must follow these steps:
- Go to the Electronic Office of the Tax Agency.
- Select the “Digital certificate” option.
- Fill out the application form with the required data.
- Submit the necessary documentation proving NIF reinstatement.
- Pick up the digital certificate at the Certification Authority’s office once the application is approved.
Use and applications of the digital certificate in subsequent tax procedures
The main applications of the digital certificate are:
- Tax returns: filing of tax returns such as VAT, IRPF, etc.
- Queries and data modifications: access to tax information and changes to personal and company data.
- Administrative procedures: applying for grants, aids, and other procedures with Public Administration.
- Digital signature: signing official documents securely and legally.
The use of a digital certificate not only speeds up procedures but also ensures the security and authenticity of the operations carried out.
Checking and monitoring NIF status
To check if a NIF has been revoked, you can consult on the electronic site of the Tax Agency. This service allows you to verify the NIF’s status and find out whether there is any irregularity or if it has been revoked.
The Tax Agency offers taxpayers an online service to check the status of their NIF reinstatement process. By accessing the AEAT electronic office with a digital certificate or Cl@ve, you can track the progress of the procedure and see what stage it is in.
The AEAT provides various resources to help taxpayers resolve questions and obtain information about NIF reinstatement. In addition to the electronic office, you can also contact the citizen support service, where they offer advice and can address queries related to the process.
Frequently asked questions about reinstating a revoked NIF
Is it possible to reinstate a revoked NIF?
Yes, it is possible to reinstate a revoked NIF, provided you meet the requirements established by the Tax Agency. Reinstatement is based on proving that the causes for revocation have disappeared. Required documents include settling outstanding taxes, submitting overdue returns, and any other documentation the Tax Administration may request.
Can a company operate normally after reinstatement?
Once the NIF is reinstated, the company can resume its economic activities. The company’s full operational capacity is restored, allowing it to conduct tax and legal transactions like any active entity. It is important to ensure all requirements and documents requested during the reinstatement process are correctly completed to avoid future complications.
What happens if the NIF is not reinstated?
If the revoked NIF is not reinstated, the company cannot conduct economic activities or fulfill its tax and legal obligations. Revocation means the loss of the entity’s tax status, which may lead to penalties and the inability to perform any procedure with the Tax Administration. Furthermore, the company cannot request a new digital certificate or conduct operations requiring tax identification.
Professional assistance with NIF reinstatement
Benefits of having specialized advice
Reinstating a revoked NIF is a complex process that requires specialized knowledge of tax and legal matters. Having professional specialized advice can help you understand the applicable regulations, identify the causes of revocation, and prepare the necessary documentation for the procedure.
What our firm can do to help you with the process
At Supra Legit, we offer a comprehensive service for NIF reinstatement. We handle reviewing the documentation provided, ensuring that it meets all legal requirements. We also advise you on possible alternatives and strategies to prove the disappearance of the causes that led to revocation. Additionally, we manage the application submission to the Tax Administration and keep you informed about the state of the process.
Personalized legal and tax advice
Each case is unique and requires tailored attention. At Supra Legit, we offer you legal and tax guidance tailored to your company’s specific needs. We analyze your particular situation and provide you with customized solutions to ensure the success of the NIF reinstatement. We advise you on all the tax and legal implications of the process, ensuring that actions are carried out in accordance with current regulations.
Get in touch
