Revoked Tax ID and judicial enforcement: validity of deeds and registrations

The situation of entities that have suffered the revocation of their Tax Identification Number (NIF) raises questions regarding their capacity to perform legal acts. Recently, the General Directorate of Taxes (DGT) has addressed the validity of notarial intervention and registry registration in scenarios where a judicial authority order exists.

What the DGT has resolved

The inquiry focused on determining whether a notary must refrain from authorizing a deed for the adjudication of real estate when the entity involved has a NIF revoked due to tax regulations. Likewise, it was questioned whether the Property Registry could prevent the registration of said deed if the execution and registration have been ordered by a judge.

The DGT has established that the revocation of the NIF, in accordance with the General Tax Law (Ley General Tributaria), prevents entities from performing legal acts voluntarily. However, this limitation is not absolute against judicial authority. When the execution of a public deed and its subsequent registration in the Property Registry result from the enforcement of a judicial sentence, the revocation of the NIF does not constitute an impediment for the notary to intervene or for the registrar to proceed with the registration.

What it means for you

If you are an individual, heir, or plaintiff who needs to register assets through the enforcement of a sentence against an entity with a revoked NIF, the regulations do not block your right. The resolution confirms that the enforcement of a judicial decision prevails over the administrative limitation derived from the entity's tax status.

What should be done

It is fundamental to distinguish between the acts of free will of an entity and those that are imposed by a judicial resolution. In the case of enforcement proceedings, the existence of a sentence is the element that allows the restriction of the revoked NIF to be overcome. It is recommended to assess each legal situation individually to determine whether the act requires a prior judicial order or if it is a voluntary management by the entity.