Reinstatement of the revoked company’s N.I.F. (Tax Identification Number)

Reinstatement of the revoked company’s N.I.F. (Tax Identification Number)

The Tax Identification Number (N.I.F.) is fundamental in the tax relations of individuals and legal entities in Spain. Its revocation can have serious repercussions, but fortunately there is a procedure for its rehabilitation. As a result of Royal Decree 249/2023, significant changes have been introduced in these processes, allowing you to resume your economic activities without problems.

In Spain, the N.I.F. is assigned to all persons and entities with tax obligations. In the case of individuals, it is their national identity card or a number assigned by the administration. For legal persons, the N.I.F. includes a letter indicating their legal form and a serial number.

Revocation of the N.I.F. can occur for several reasons, which are detailed in Article 147 of the General Regulations on Tax Administration and Inspection Actions and Procedures (Reglamento General de las Actuaciones y los Procedimientos de Gestión e Inspección Tributaria, RGAT). Some of the most common causes include:

• Failure to provide the necessary documentation to obtain a definitive N.I.F.
• Declaring an entity as insolvent.
• Failure to file tax returns for three consecutive periods.
• Failure to notify the taxpayer at their tax domicile for more than one year.
• Declaring non-existent economic activities.
• Failure to start a business activity within three months of applying for the N.I.F.
• Using the same capital to set up multiple companies.
• Providing false addresses for economic activities.
• Failure to file annual accounts with the commercial register for four consecutive financial years.

The good news is that the revocation of the N.I.F. does not have to be permanent. Reinstatement is possible if the causes for revocation are eliminated. 

The revocation of the N.I.F. requires a prior hearing with the affected party and its publication in the Official State Gazette (BOE). A revoked N.I.F. loses its validity for tax identification purposes, preventing banking and legal operations, such as obtaining certificates of being up to date with tax obligations, although the administration can continue to demand compliance with outstanding obligations.

The reinstatement of the N.I.F. is possible if the causes that led to its revocation are rectified. The procedure requires the presentation of documentation proving that the initial problems have been solved, which is as follows:

• Application for reinstatement of the N.I.F.
• Proof that the original causes of the revocation have been rectified.
• Accreditation of the owner of the share capital, identification of the legal representatives and the real owners.
• Details of the economic activity to be carried out and the adequacy of the current census situation.
• In the case of dissolution, deed of dissolution of the company.

Royal Decree 249/2023 specifies that, in order to reinstate a N.I.F. revoked for failure to file annual accounts, it is essential that this non-compliance be remedied before applying for reinstatement.

The process of reinstatement of the N.I.F. begins with the submission of an application that must include documentation accrediting the resolution of the initial problems. This application can be submitted online, at the offices of the State Tax Administration Agency (AEAT), at post offices, or at other places contemplated in Law 39/2015.

Once the application has been submitted, the administration has a period of three months to issue a decision. During this period, it will assess whether the causes that led to the revocation of the N.I.F. have indeed been rectified. If the application meets all the requirements, a rehabilitation agreement will be published in the BOE and the interested party will be notified. If the application is rejected, the interested party has the possibility to file an appeal for reconsideration or an economic-administrative claim within one month of the notification of the resolution.

Acting quickly in the event of a problem is essential to avoid further complications. If a cause is identified that could lead to the revocation of the N.I.F., it is important to rectify it immediately. 

In case of doubts or complications, it is advisable to consult a professional. A tax advisor or a lawyer specialised in tax law can provide expert guidance and ensure that all the necessary steps for the reinstatement of the N.I.F. are followed correctly.