What is a certificate of being up to date with the Spanish tax authorities, and what is it used for?

Whenever we need to show that our tax obligations are in order, we need a document that supports our position, and that document is none other than the certificate of being up to date with payments to the tax authorities (certificado de estar al corriente de pago con Hacienda).

A tax certification or tax certificate is a document issued by the tax authorities that attests to facts relating to the tax situation of a taxpayer (obligado tributario).

The certificate of being up to date with the tax authorities is a tax certificate. Its issuance attests to whether or not the taxpayer is up to date with its tax obligations.

Results of the certificate

When the certificate is issued, it may have different results. The result of this certificate may be:

• Positive: This is the result everyone hopes for. It certifies that the person is up to date with their tax obligations.

• Negative: This may occur in the following cases:

– The certificate is denied because of debts owed by the applicant.
– The certificate is denied because the applicant has failed to file tax returns.
– The certificate is denied on both of the above grounds.

Effects and validity of the certificate

A tax certificate is informative in nature. For that reason, no appeal may be lodged against such certificates, although disagreement may be expressed with the data that form part of their content. A maximum time limit applies for this purpose, within which a written submission requesting the amendment of the certificate must be filed, accompanied by the necessary supporting evidence.

As for validity, the certificate will be valid for 12 months from the date of issue, provided that no changes occur, that the specific rules governing the tax certificate do not provide otherwise, and that it refers to periodic obligations. In the case of non-periodic obligations, the validity period will be 3 months.

When the certificate of being up to date with the tax authorities is needed

The most common reason for requesting the certificate of being up to date is to be able to access both state and regional aid and grants.

This information may also be requested when agreements are signed with suppliers and other companies.

This type of certificate is also very frequently required to take part in a tender or competitive bidding procedure.

A final reason the certificate is often needed is when a company is transferred, or when a company or business is liquidated or dissolved.

To request the certificate of being up to date with the Spanish Tax Agency (AEAT), you can either apply electronically, which requires some means of authentication, or go in person to the Tax Agency’s regional delegations and local offices.

And what is the certificate of being up to date with Social Security?

Similar to the tax authorities’ certificate of having no debts, the certificate of being up to date with Social Security is a document intended to certify that you have no outstanding obligations with this body.

This document can be used to prove that an individual or a company has no debt of any kind with Social Security.

This certificate may be necessary when carrying out formalities with public authorities. Specifically, it is required for the following procedures:

• Applying for certain reductions or relief (bonificaciones) on contributions. To take advantage of the flat-rate contribution for self-employed workers (tarifa plana de autónomos), it is essential to be up to date with the payment of Social Security contributions.

• Proving solvency to banks or suppliers. Some companies ask the self-employed workers they are going to work with for their Social Security certificate to make sure there will be no problems with the payment of invoices. The same can happen with banks, although it is less common.

• Accessing most grants or aid.

• Bidding for public tenders or contracts.

• Requesting a deferral of payment of debts.