When foreign companies, including Dutch ones, wish to operate in Spain, one of the first essential steps is to apply for the Tax Identification Code (CIF), also known as the Tax Identification Number (NIF). To do so, it is necessary to present an extract from the commercial register. In the Netherlands, this register is known as KVK (Kamer van Koophandel), in Belgium as Kruispuntbank, and in the United Kingdom as Companies House.
Once the NIF is obtained, the company must communicate with the Spanish administration through a digital signature. And this is where the challenges begin.
The FNMT (Fábrica Nacional de Moneda y Timbre), famous from the serie “La Casa de Papel,” is one of the institutions responsible for issuing digital certificates in Spain. However, there is one requirement that complicates the process: the extract from the commercial register must have a validity of no more than 15 days. This deadline ensures that the information presented is up-to-date and complies with Spanish fiscal and legal requirements.
Now, imagine all this bureaucracy when the client is not in Spain and the procedure has to be done through representation. The challenge only increases! First, we need to draw up an authorisation to act on behalf of the client. Then we will look for a notary to endorse this document, schedule a specific date to attend the proceedings on behalf of the client, and hope that the current Chamber of Commerce extract is correctly apostilled and sent along with the signed authorisation. Sounds simple? Absolutely not! We have experienced cases where the KVK document arrived, but the authorisation was forgotten in the transmission. Believe it or not!
When we finally have everything in hand, we need to make sure the documents arrive at our office in time to secure a still available appointment at Hacienda (Spanish Tax Office). And that does not yet mean that the CIF will be issued automatically. If the official in charge judges that something is incorrect or incomplete, the CIF application will still be rejected.
Is this a real marathon or not?
Why must the KVK extract be valid for no more than 15 days?
- Guarantee of Updated Information and Fiscal Accuracy
Companies can undergo rapid changes, such as changes in address or corporate structure. The 15-day deadline ensures that the AEAT (Spanish Tax Agency) works with reliable and current data; - Ease of Verification and CIF Approval
An updated KVK extract simplifies the review by Hacienda, reducing delays and increasing the efficiency of the CIF issuance process; - Prevention of Fraud and Fiscal Risks
Recent documentation prevents the use of outdated or fraudulent information, protecting the Spanish fiscal system against inactive or risky companies.
What happens if the KVK extract is not within the timeframe?
If a company submits a KVK extract older than 15 days, the CIF application will be rejected. Additionally, it will not be possible to obtain the NIF with an expired KVK extract. Without the CIF and the digital signature, the company will not be able to communicate with the Spanish tax administration or receive tax notifications. This can significantly delay the company’s operations in the country, preventing it from opening bank accounts, hiring employees, and issuing invoices.
Conclusion
The FNMT’s requirement of a KVK extract with a validity of up to 15 days when applying for a CIF is a fundamental measure to ensure transparency, security, and efficiency in the Spanish fiscal system. For foreign companies, understanding and following this rule is essential to avoid setbacks and ensure a successful entry into the Spanish market.
And for those going through this process by representation, patience and planning are essential. After all, each step can turn into a challenge, and in the end, everything must align for the company to operate without setbacks. The client, the notary, and the gestoría must work in sync and efficiently, as any mistake can jeopardize the entire process. A true race against time!
Danielle Coppola Vargas