On January 22, the National Tax Service (SIN) issued Regulatory Resolution of the Board of Directors No. 102600000002, eliminating the requirement for on-site verification to obtain a Taxpayer Identification Number (NIT).
Prior to this regulatory change, which amends and repeals previous provisions, the Tax Administration had to conduct on-site verifications of all taxpayers engaging in economic activities subject to Value Added Tax (VAT), as well as those subject to special tax regimes, as a prerequisite for their filing with the National Taxpayers Registry (RNC).
In practice, the procedure not only generated delays in filing procedures —taking a minimum of five (5) business days— but also gave rise to observations that in many cases exceeded the scope of existing regulations. This made it impossible to launch economic operations promptly, and even encouraged informality given the difficulties in obtaining a taxpayer identification number.
Now, the taxpayer ID will be generated immediately upon completing the filing procedure, which can be initiated either by using the online system and completing it at SIN offices, or by the taxpayer’s directly visiting SIN offices in person.
Finally, it is important to note that this change does not eliminate the substantive requirements established for filing with the Taxpayers Registry, but instead is limited to simplifying the administrative procedure, with a view to facilitating formalization of economic activities.