Credit seizure orders are one of the most common and effective mechanisms used by the Spanish Tax Office (AEAT) to secure the collection of tax debts. Through this procedure, the Administration orders a third party—usually a client of the debtor, but it could also be a tenant, a contracting company, or anyone who owes money to the debtor—to pay the Tax Office directly instead of the taxpayer.
This type of seizure is particularly relevant for self-employed workers, professionals, and companies, as it directly affects their billing and client relationships.
Below is a detailed explanation of what it is, how it works, the obligations it creates, and what the affected taxpayer can do.
1. What is a Credit Seizure Order?
A credit seizure order is an administrative act whereby the AEAT instructs a third party to deliver to the Tax Office the money owed to the taxpayer, up to the amount of the outstanding debt.
It applies to:
- Pending payments from clients.
- Invoices already issued but not yet collected.
- Future billing under a contract.
- Commissions, royalties, or economic rights.
- Any credit or economic right the taxpayer has against a third party.
In essence: if someone owes money to the taxpayer, from the moment of notification, they must pay the AEAT instead.
2. Who is notified?
The AEAT sends the seizure order to:
- The debtor taxpayer.
- The third party who must make the payment (the client, tenant, contracting company, or other debtor).
From that moment, the third party is legally obliged to transfer the amounts to the AEAT.
3. What obligations does the third party (client of the debtor) have?
After receiving the notification, the third party must:
- Withhold pending amounts
Any amount not yet paid to the debtor is automatically subject to the seizure. - Pay the AEAT instead of the taxpayer
They must transfer the amounts directly to the Tax Office, following the instructions in the seizure order. - Report prior payments
If the payment to the taxpayer was made before the notification, the third party must inform the AEAT. - Avoid improper payments
If the third party pays the taxpayer instead of the AEAT after notification, they: Will be held jointly and severally liable, having to pay the amount again to the Tax Office, up to the value of the seized credit.
4. Which credits can be seized?
The AEAT can seize:
- Issued invoices pending collection.
- Periodic billing (monthly services, rent, fees, technical assistance, etc.).
- Variable income from commissions or sales.
- Rents, royalties, licenses.
- Payments under special employment contracts (artists, administrators, etc.).
- Indemnities or economic compensations.
The seizure remains in effect until:
- The debt is fully covered, or
- The economic obligation between the client and the taxpayer ends.
5. How does it affect the taxpayer?
Receiving a credit seizure order implies:
- Immediate loss of part of their income.
- Potential tension with clients, as they become involved in the procedure.
- Impact on liquidity and business continuity.
- Risk of successive seizures if the debt remains unpaid.
However, there are mechanisms to stop or mitigate the effects.
6. Can a credit seizure order be challenged?
Yes. The taxpayer can file:
- Administrative appeal (recurso de reposición) Deadline: 1 month from notification.
- Economic-administrative claim (TEAR) Also within 1 month.
The most common reasons to contest a seizure are:
- Defective notification.
- Nonexistent or already collected credit.
- Payments that cannot be seized.
- Statute of limitations on the debt.
- Incorrect or disproportionate seizure order.
- Errors in the amount.
Additionally, if the taxpayer requests a deferral or installment plan and it is granted, the seizure is suspended.
7. What can the taxpayer do upon receiving a seizure?
Immediate recommendations:
- Verify that the seized credit actually exists.
- Check that the client has not already paid.
- Contact the client to explain the situation.
- Request a deferral or installment plan to suspend execution.
- File an appeal if applicable.
- Ask the AEAT to substitute the seizure with other assets if strategically advantageous.
Acting quickly is essential to prevent the Administration from continuing to seize other income.
8. Practical example
A self-employed worker issues an invoice of 1.500€ to a company.
The AEAT detects that the self-employed worker has debts and sends a credit seizure order to the company.
- The company must pay 1.500€ directly to the AEAT.
- If it pays the self-employed worker instead, it will be jointly liable and must pay the amount again to the Tax Office.
- If there is a monthly contract, the seizure continues for future invoices until the debt is fully covered.
9. Conclusion
Credit seizure orders are an effective tool for the AEAT and, at the same time, one of the most sensitive procedures for taxpayers, as they directly affect cash flow and client relationships.
Understanding how they work, the obligations they create, and the defenses available is essential to minimize impact and respond appropriately to the Administration.
