We remind you through this update that the Royal Decree 1065/2007, of July 27th, establishes the obligation of having a VAT Identification Number for the foreign entities.

 A recent Resolution of the “Dirección General de los Registros y del Notariado” establishes that a Foreign Company, being the Only Partner of a Spanish Company, must have the appropriate VAT Identification Number.

 Up to now Companies with these characteristics could still operate without the Spanish NIF, although we have recently found that the latest resolutions are denying tax liability operations because of the lack of NIF, and everything points that from now on it will be demanded more rigorously.

 It is our duty to inform you that in the coming years the Tax Authorities could deny the filing of the Company Tax Revenue when the partners would be foreign companies without the appropriate Spanish NIF, so it is highly recommendable that foreign companies apply for it before the Tax Authorities.

As the last point, just to warn you that this year the Annual Accounts Deposit Software will require the Spanish NIF for the foreign dominant companies.

Through the following link you can get the RD 1065/2007 of July 27th about the proceedings of management and tax inspection as well as the common norms development for the tax applying procedures.