Notice: Electronic tax Window (ETW) blocking of inactive taxpayers

We have noticed a significant increase in the blocking of access to the Electronic Tax Window (VET); mainly in those taxpayers that are legal entities that never started operations or have not been operating for several years, that is, taxpayers considered inactive before the Tax Administration.

The General Revenue Directorate (DGI) is disabling the access to the Electronic Tax Window (VET) to those taxpayers that are considered inactive. Taxpayers considered inactive by the tax authority are those who have been filing monthly and annual tax returns for a long period of time without income, i.e., those taxpayers who daily and consecutively file zero returns with the Tax Administration.

The loss of access to the Electronic Tax Window (VET) can cause several problems to the taxpayer, as well as to its shareholders, directors and legal representative. Access to the Electronic Tax Window (VET) is essential to file monthly tax returns and annual income tax returns, as well as to obtain tax solvencies and all types of tax documents. Therefore, the loss of access implies that a state of insolvency is generated by not filing tax returns in due time and form – even if these are zero returns -, it is not possible to generate tax solvencies or other types of tax documents necessary for the taxpayer’s operations. Arbitrarily, these states of insolvency affect the shareholders, representatives and directors, so that other companies of the same group may be affected in their dealings with the Tax Administration.

We warn that the procedures to enable the Electronic Tax Window (VET) derived from a blockage due to inactivity may take several months to be resolved, since the taxpayer must demonstrate that it will begin to carry out operations that generate income or that the dissolution of the company has been carried out before the Public Mercantile Registry. This type of cases are characterized for having a long duration, therefore, before the blocking it is advisable to review the status of the company before the General Revenue Directorate (DGI) and to evaluate the closing of such company in case it is a non-operational company.