The General Secretariat of Public Revenue will deactivate the Tax Identification Number of import and export businesses that avoid paying VAT by carrying out fictitious triangular transactions. In essence the GS will be able to “pull the plug” on businesses suspected of tax evasion.
If a business has been “black listed” in another country or there is reasonable certainty about fictitious triangular transactions being carried out to avoid paying VAT, the general secretariat will be able to carry out the TIN deactivation promptly. Affected businesses will simply receive an email with the relevant information.
The decision of the General Secretariat has detailed the cases where businesses may face this “sudden death”, such as failing to submit any VAT statements, despite being known to carry transactions within the EU. Automatic suspension will also occur in cases where the taxpayer has changed his head quarters or suspended his financial activities without informing the relevant tax services.
In special cases the General Secretariat may warn businesses that their tax identification number will be “frozen”, unless they provide sufficient explanations within ten days.
