How to rehabilitate a revoked NIF for liquidating a company?

Under what circumstances can the administration revoke my ID number?

Article 147 of the RGIAT 2007 states that Spain’s State Tax Administration Agency (AEAT) has the authority to revoke a NIF in the following circumstances:

• Failure to comply with tax obligations: If you have not filed your Corporate Tax for three consecutive years.
• Irregularities in the registry data: If your company has not filed the annual accounts in the Commercial Registry for four consecutive years.
• Lack of economic activity: If a company remains inactive for an extended period of time—specifically when the company has been established but has not begun any financial activities or taken preparatory steps within three months of submitting the NIF application.
• Use of the NIF for illegal purposes: If there is evidence that the NIF has been used for fraudulent or criminal activities, such as issuing false invoices, conducting tax evasion schemes, or non-existent economic activity.
• It has been impossible to deliver notifications to the taxpayer.
• There are outstanding debts to the Treasury.

How to know if a NIF has been revoked

To determine whether an NIF has been revoked, it’s essential to examine the procedures and the notification mechanisms outlined in current regulations:

• You will receive a notification: The revocation agreement is not processed automatically. It requires notifying the taxpayer and granting a prior hearing that lasts up to 10 days so they can make their corresponding allegations.Keep in mind that Spanish companies must communicate through the AEAT website (to receive electronic notifications, you must perform a specific procedure and have an electronic certificate issued by the Fábrica Nacional de Moneda y Timbre (FMNT).

• Check the Official State Gazette (BOE): In addition to the previous requirement, the NIF’s revocation must be announced in the Official State Gazette (BOE).
• Check the AEAT’s website: You can also verify the state of your NIF through the AEAT’s website. To do so, the company must have the electronic certificate issued by the FMNT in action.
• Direct consultation with the AEAT: If you have any questions, you can contact the tax administration directly to confirm the status of your NIF and request additional information on the reasons and the procedure followed in the event of revocation.

How to rehabilitate a cancelled NIF

A company’s NIF revocation does not have to be irreversible. If the reasons for the revocatjon are resolved, NIF rehabilitation is posslble. After the application is submitted, the administration has three months to make a decision.

Requirements for NIF rehabilitation

• Establishing that the reasons for revocation are no longer valid: For NIF rehabilitations, applications will only be accepted if they show that the conditions leading to the NIF revocation cease to exist.
• Identifying owners and legal representatives: Companies must communicate who owns the share capital and fully identify their legal representatives and the real owners, following article 4.2 of Law 10/2010 on the prevention of money laundering.
• Provide consistent census information: This includes the tax address, the type of economic activity the company will engage in, and, if relevant, the ending of any prior economic activities. It should also specify the sole purpose of the company’s liquidation and dissolution.
• Correcting specific non-compliances: If the revocation is due to the failure to file annual accounts in the Commercial Registry for four consecutive fiscal years, it is essential to address this non-compliance by updating the company’s accounting records.

Steps to follow

Rosana Tejada, a tax advisor in Spain , emphasises that companies, even when inactive, must submit their annual corporate income tax return and deposit accounts with the relevant commercial registry. Thus, she advises taking steps to rectify the situation and ensure compliance with the necessary tax and legal obligations to avoid having to go through the NIF rehabilitation process.