More than 40,000 freelancers and companies in Spain lost their NIF in 2024 for not complying with their tax obligations. The Tax Agency (AEAT) is intensifying the revocation of the Tax Identification Number (NIF in Spanish) of inactive companies as an anti-fraud measure. Next, we explain what the revocation of the NIF means, why inactive companies run this risk and how a revoked NIF can be rehabilitated, according to official sources.
What is the revocation of the NIF and what does it imply?
The revocation of the NIF is the procedure by which the Treasury annuls the validity of the tax identification number of a company. It is one of the most severe sanctions that the AEAT can impose. In practice, a company without a valid NIF is "officially dead" for legal and tax purposes, since the revoked NIF loses all identification validity in the tax field until its eventual rehabilitation.
Consequences of a revoked NIF: The revocation entails an almost total stoppage of the company's activity. Among the main effects are:
- Not valid for tax purposes: The NIF ceases to be valid for tax procedures and cannot be used on invoices or official declarations. The company, as it does not have an active tax identifier, is excluded from ordinary tax traffic.
- Bank blocking: Financial institutions block charges and credits in the company's bank accounts while the NIF is revoked. In other words, the company cannot operate its bank accounts normally or make collections or payments.
- Registry and Notary Closure: The company's registration sheet in the Mercantile Registry is closed, which prevents the registration of new acts (for example, changes of directors, capital increases, etc.). Likewise, notaries may not authorise deeds or contracts in the name of the company, except for those essential procedures intended for its reactivation.
- Banned commercial operations: The company cannot issue invoices, contract with suppliers, or apply for loans or grants. In practice, it is excluded from any commercial operation, putting its survival at serious risk.
- Special certificates and records: Hacienda does not issue certificates to entities with revoked NIF (for example, the certificate of being up to date with tax obligations). The company's digital certificates are also revoked and causes automatic deregistration in official registers such as the Registry of Intra-Community Operators (ROI), among other special censuses.
In short, having the NIF revoked prevents the company from operating normally in any economic, legal or administrative field. That is why it is crucial to understand how to get to this situation and, above all, how to avoid it.
Inactive companies: alert for risk of losing the NIF
The revocation of the NIF is aimed mainly at inactive or "ghost" companies that have not complied with their tax and census obligations for some time. The AEAT uses this measure as a mechanism to clean up the business census, to ensure that the registered companies are actually operational. The Treasury can revoke the NIF of an inactive company when repeated breaches are detected, such as:
- Lack of tax returns: Failure to file Corporate Income Tax (Form 200) for three consecutive years may trigger revocation. Similarly, not submitting other mandatory census returns or not formally communicating the cessation of activity places the company in an irregular situation.
- Failure to comply with accounting obligations: Not depositing the annual accounts in the Mercantile Registry for four years in a row is another typical reason why the Treasury may consider the company "inactive" and withdraw the NIF.
- Not available at the tax address: If for more than one year the Treasury unsuccessfully tries to notify the company at its tax domicile, it can presume that the company is abandoned and proceed to revoke its ex officio NIF.
- Screen or irregular companies: The AEAT also revokes the NIF when it detects serious irregularities, such as the use of the same share capital to create multiple companies (indicator of possible fraud), fictitious economic activities declared in the census, or apparent or false corporate addresses. Likewise, if a company is declared insolvent (bankrupt) in the payment of tax debts, the Treasury can revoke its ex officio NIF.
Notice: The revocation is not automatic or surprising. The Treasury must first open a hearing procedure for the taxpayer (normally granting a period of 10 days for allegations) and publish the revocation agreement in the Official Journal of the State (BOE), also notifying the affected party officially. That is, the company receives prior notice and an opportunity to regularize its situation before the definitive cancellation of the NIF. Ignoring these requirements is what ultimately results in effective revocation, something that unfortunately happens with many inactive companies that are abandoned without formal dissolution.
How to reinstate a revoked NIF?
The good news is that the revocation of the NIF does not have to be irreversible. If the causes that motivated the revocation are corrected, it is possible to request the rehabilitation of the NIF and return to the fiscal normality of the company. To achieve this, these steps should be followed:
- Regularize the situation of the company: Before requesting rehabilitation, it is essential to correct the breaches that led to the revocation. For example, if the problem was the lack of tax filing or account deposits, all pending documentation (late tax returns, annual accounts in the registry, etc.) will have to be submitted and updated on all obligations. Only when the company returns to comply with its formal duties, will the Treasury consider lifting the revocation.
- Request rehabilitation from the AEAT: The company must submit a formal request to the Treasury requesting the rehabilitation of its NIF. Currently, thanks to the recent Order HAC/1526/2024, it is possible to make this request by checking the specific box on the Census Declaration Form 036. Alternatively, it can also be done by means of a letter addressed to the Tax Administration. The application must express that the company wishes to reactivate its NIF and return to comply with all its tax and census obligations.
- Provide supporting documentation: Along with the request, the entity must provide documentation that proves the real and lawful activity of the company. The Treasury will require proof that the company will develop a genuine economic activity, with a true corporate purpose and a physical place where it exercises its management and direction. In addition, the holders of the share capital and the legal representatives must be fully identified, the updated tax address must be reported and any other relevant census data must be provided to verify that the company is back in business. All this information serves the AEAT to verify that the causes that originated the revocation have disappeared.
- Waiting for the resolution of the Treasury: Once the application has been submitted with all the documentation, the Tax Agency will study the case. The process can take up to 3 months; if after this period there is no express response, the rehabilitation will be legally considered denied due to administrative silence. However, if everything is in order, the Treasury will issue a resolution rehabilitating the company's VAT number. Said rehabilitation – as well as the revocation – is published in the BoE and takes effect from its official publication.
Recommendation: During the rehabilitation process, the company must refrain from operating as if it had the active NIF until it receives official confirmation from the Treasury. It is highly advisable to have adequate legal and tax advice during this procedure, since any error in the application or in the documentation provided could result in the refusal of rehabilitation. The support of professionals will help ensure that the entire procedure is managed correctly and within the established deadlines.
Avoid revocation and seek professional help
In short, the revocation of the NIF is a real risk for inactive companies that neglect their obligations. Losing the NIF implies serious consequences that can completely paralyze the life of the company. The good news is that it can be prevented by keeping the tax returns up to date, communicating the cessations of activity in a timely manner and always attending to the requirements of the Treasury. If your company has already been affected by a revocation of the NIF or fears being at risk, it is crucial to act as soon as possible to regularize the situation and request rehabilitation following the official channels described.
Doubts about revocation of the NIF? The Tax Agency offers a section of Frequently Asked Questions about revoked NIF with detailed information. And remember: if you need professional assistance, do not hesitate to contact our law firm. We will help you evaluate your case and manage the rehabilitation of your company's NIF quickly and safely. We are at your disposal for any legal or tax inquiries you may require!
