Definition of Fiscal Address
The tax agency and the taxpayers who pay their taxes need a means of communication to carry out all the necessary procedures related to tax obligations (payment of taxes, request for deferrals, etc). One of the fundamental data for such communication to be effective and correct is, precisely, the tax domicile, which is the place indicated by the taxpayer to receive the communication from the tax agency.
It must be borne in mind that the fiscal address does not necessarily have to coincide with the address where the economic activity is carried out, but normally they do coincide (in this sense the concept of fiscal address and postal address should not be confused). It should also be remembered that the registration information (the place where we usually reside) is not related to the tax address. Another fact that creates some confusion is the registered office of an entity, which must be communicated in the commercial register , while the fiscal address is an aspect that is administratively transferred to the tax agency. These distinctions are relevant, since with some frequency the taxpayer has doubts when completing his annual income statement.
What is the tax address for?
First and as we have already indicated, to receive information from the administration . Second, for a correct tax identification of a company with respect to its customers and suppliers (for example, so that the latter can issue an invoice correctly). It is also necessary for a freelancer or company to register for social security .
The mandatory identification of the fiscal domicile affects both natural persons and legal persons that carry out an economic activity.
Other questions about the tax domicile
The taxpayer must know that the communication of the tax domicile to the tax agency is not a simple procedure but has a mandatory nature that cannot be avoided. It is logical that this is the case, since the administration and management of taxes is based on precise control over the identification of taxpayers. On the other hand, it should be remembered that tax collection is essential to maintain the structure of a society and public services (health, education , infrastructure, pensions, etc.).
In recent years, the tax agency in most countries has introduced online portals, a technological tool that facilitates communication between the administration and citizens through direct procedures (for example, electronic signature or digital certification).
The technical and bureaucratic complexity in relation to the tax administration makes many citizens and companies turn to a tax advisor to ensure that the procedures carried out are carried out according to the law and according to the established procedure.
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