In the event that the Tax Administration suspends the TIN assigned to the taxpayer by decision, it delivers a copy of the decision to the bank and the competent organizational unit for forced collection. Then the bank is obliged to suspend the execution of the taxpayer’s order for the transfer of funds, except for the purpose of settling obligations based on taxes and secondary tax payments.
Therefore, the legal consequences of suspended TIN are as follows:
1) suspension of the execution of the taxpayer’s order for the transfer of funds, except for the above-mentioned purpose;
2) Impossibility of identifying the taxpayer in payment instruments, which means the impossibility of issuing invoices, submitting tax returns, as well as any payment instrument that orders the performance of any payment transaction, except for the above purpose.
In this regard, the taxpayer is de facto prevented from performing the activity, although the performance of the activity is not formally prohibited.
On the other hand, a temporary absence from the tax relationship, which occurred as a result of the TIN suspension, does not constitute a legal basis for exemption from tax payments.
Regarding this topic, with respect to the entrepreneurs, the Ministry of Finance published the following opinion:
A taxpayer who is temporarily absent from the tax relationship, and whose situation arose as a result of the suspended TIN, is effectively prevented from performing activities, even though the performance of activities is not formally prohibited. On the other hand, a temporary absence from the tax relationship that occurred as a result of the suspended TIN does not constitute a legal basis for exemption from the payment of mandatory social security contributions.